Vanguard Russell 1000 Growth ETF vs. iShares Small-Cap 600 Growth ETF
VONG targets megacap tech giants with a 0.06% expense ratio, while IJT pursues smaller companies and has returned 27.2% over the last year.
The Vanguard Russell 1000 Growth ETF and the iShares S&P Small-Cap 600 Growth ETF are two distinct investment options targeting growth from opposing ends of the market-cap spectrum. The Vanguard fund, with a lower expense ratio of 0.06%, provides broad exposure to established U.S. giants, heavily tilted toward the technology sector, which makes up 68% of its portfolio.
Its largest positions include Nvidia, Alphabet, and Apple. Over the past year, it has offered a 0.5% dividend yield and has a total of 370 stocks in its portfolio.
On the other hand, the iShares S&P Small-Cap 600 Growth ETF targets smaller companies with higher growth potential, offering a slightly higher yield of 0.7% over the trailing 12 months. It is more balanced in sector distribution, with industrials, financials, and healthcare each accounting for around 15% of its portfolio. Its largest holdings include Corcept Therapeutics, Viasat, and Brinker International.
The fund has 377 holdings and was introduced in 2000. Investors considering these ETFs should weigh the trade-off between established market leaders and the potential for higher growth, albeit with increased risk, in smaller-cap companies.
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