Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) offers efficient access to the largest U.S. growth engines, whereas iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT) targets the aggressive expansion of smaller firms.
Growth investing can take vastly different forms depending on the market capitalization of the underlying companies. While both funds prioritize companies with strong expansion potential, they operate at opposite ends of the size spectrum, ranging from trillion-dollar tech titans to nimbler small-cap players. This comparison examines how these distinct baskets influence cost structures, volatility profiles, and long-term total return trajectories for different types of portfolios.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 23.
The 0.11 percentage point difference in expense ratios may appeal to cost-conscious investors, as the Vanguard fund charges significantly less than the iShares fund. While neither strategy is primarily designed for income, the marginal difference in yield might be a secondary consideration for some. This gap in annual fees can impact cumulative gains over decades, particularly given the relatively low dividend yields provided by both growth-focused strategies.
Performance & risk comparison
What’s inside
The Vanguard S&P 500 Growth ETF is heavily concentrated in the Technology sector at 52%, followed by Communication Services at 16%, and Consumer Cyclical at 9%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 13.6%, Microsoft Corp (NASDAQ:MSFT) at 7.8%, and Apple Inc (NASDAQ:AAPL) at 6%. The fund manages 148 holdings. It was launched in 2010. Vanguard S&P 500 Growth ETF has paid $0.37 per share over the trailing 12 months, which on its recent ~$80.29 share price works out to a 0.5% yield.
The iShares S&P Small-Cap 600 Growth ETF offers exposure to small-cap growth, with its portfolio allocated across Industrials at 19%, Technology at 18%, and Healthcare at 7%. Top holdings include Formfactor Inc (NASDAQ:FORM) at 1.4%, Viasat Inc (NASDAQ:VSAT) at 1.3%, and Argan Inc (NYSE:AGX) at 1.2%. It maintains a broader basket of 350 holdings. It was launched in 2000. iShares S&P Small-Cap 600 Growth ETF has paid $1.21 per share over the trailing 12 months, which on its recent ~$171.73 share price works out to a 0.7% yield.
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