The Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) offers low-cost exposure to large-cap giants, while the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) targets smaller companies with potentially higher volatility and price sensitivity.
Growth investors often face a choice between established market leaders and emerging innovators. The Vanguard fund tracks the large-cap growth market, offering exposure to the world’s most dominant corporations, while the iShares fund focuses on small-cap stocks that may offer higher growth potential but are more price-sensitive.
Snapshot (cost & size)
|
Metric |
IWO |
VONG |
|---|---|---|
|
Issuer |
iShares |
Vanguard |
|
Expense ratio |
0.24% |
0.06% |
|
1-yr return (as of May 18, 2026) |
30.6% |
24.3% |
|
Dividend yield |
0.4% |
0.4% |
|
Beta |
1.19 |
1.16 |
|
AUM |
$14.2 billion |
$44.9 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors might find the Vanguard fund particularly attractive given its 0.06% expense ratio, which is one-quarter the iShares fund’s 0.24% fee. Both funds currently offer a matching dividend yield of 0.4%.
Performance & risk comparison
|
Metric |
IWO |
VONG |
|---|---|---|
|
Max drawdown (5 yr) |
(40.5%) |
(32.7%) |
|
Growth of $1,000 over 5 years (total return) |
$1,287 |
$2,068 |
What’s inside
The Vanguard Russell 1000 Growth ETF (VONG) provides exposure to approximately 394 holdings, with the technology sector accounting for 51% of the portfolio. Other major allocations include communication services at 13% and consumer cyclical stocks at 13%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 13.21%, Apple Inc (NASDAQ:AAPL) at 11.11%, and Microsoft Corp (NASDAQ:MSFT) at 8.68%. Launched in 2010, the fund has a trailing-12-month dividend of $0.56 per share and seeks to mirror the performance of large U.S. growth companies.
By comparison, the iShares Russell 2000 Growth ETF (IWO) targets the small-cap segment with a portfolio that reflects technology at 24%, industrials at 23%, and healthcare at 22%. Its largest holdings include Bloom Energy Corp (NYSE:BE) at 3.36%, Fabrinet (NYSE:FN) at 1.50%, and Credo Technology Group Holding Ltd (NASDAQ:CRDO) at 1.50%. This fund, launched in 2000, manages its exposure through a strategy that currently shows one primary holding in its reported data. It has paid $1.51 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The Vanguard Russell 1000 Growth ETF (VONG) and the iShares Russell 2000 Growth ETF (IWO) are both ETFs worth considering, particularly for growth-oriented investors. Here are some key differences between the two.
