VONG vs. IWO: Large-Cap Stability or Small-Cap Growth Upside?
Key takeaways
- Both exchange-traded funds (ETFs) target growth stocks but operate at different ends of the market capitalization spectrum.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund is significantly more affordable with an expense ratio of 0.06%, which is much lower than the 0.24% charged by the iShares ETF.
Both exchange-traded funds (ETFs) target growth stocks but operate at different ends of the market capitalization spectrum. The i Shares ETF focuses on smaller firms that may offer higher return potential, whereas the Vanguard fund tracks established industry leaders. This comparison examines how their different market-cap focuses affect risk, expense structures, and long-term total returns for growth-oriented investors.
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.
The Vanguard fund is significantly more affordable with an expense ratio of 0.06%, which is much lower than the 0.24% charged by the iShares ETF. Both funds currently offer an identical dividend yield of 0.40%, providing a modest income stream alongside their primary focus on capital appreciation.