Which Is the Better ETF for Growth Stocks, Vanguard's VONG or iShares' IWO?
Key takeaways
- Investors seeking growth often choose between the stability of dominant large-cap leaders and the high-octane potential of smaller firms.
- 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, maintaining an expense ratio of 0.06% compared to the 0.24% charged by the iShares fund.
Robert Izquierdo, The Motley Fool Mon, May 11, 2026 at 11:07 PM GMT+7 4 min read ^GSPC The Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) focuses on large-cap leaders with lower costs, while the i Shares Russell 2000 Growth ETF (NYSEMKT:IWO) targets smaller, more volatile growth companies with higher recent returns.
Investors seeking growth often choose between the stability of dominant large-cap leaders and the high-octane potential of smaller firms. While both funds target growth characteristics, their market cap focus leads to different volatility profiles. This comparison examines how a large-cap growth powerhouse matches up against a small-cap growth specialist, looking at whether higher recent returns justify the additional risk.
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.