Better Small-Cap ETF: Vanguard's VBK vs. Invesco's RZG

5 days ago 9

Robert Izquierdo, The Motley Fool

Mon, January 19, 2026 astatine 9:34 AM CST 5 min read

The Vanguard Small-Cap Growth ETF offers a overmuch little disbursal ratio and larger assets nether absorption than Invesco S&P SmallCap 600 Pure Growth ETF.
RZG edges retired VBK connected one-year full instrumentality but some showed astir identical drawdowns and semipermanent growth.
VBK holds acold much stocks and leans toward technology, portion RZG has a heavier healthcare tilt.
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The Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) stands retired for its ultra-low costs, heavy liquidity, and broader diversification, portion the Invesco S&P SmallCap 600 Pure Growth ETF (NYSEMKT:RZG) delivers a marginally higher caller instrumentality and a much concentrated portfolio with a healthcare emphasis.

Both RZG and VBK purpose to seizure U.S. small-cap maturation stocks, but they instrumentality chiseled approaches successful portfolio construction, assemblage exposure, and fees. This examination breaks down however the 2 funds stack up connected cost, performance, risk, portfolio makeup, and applicable considerations for investors seeking small-cap maturation exposure.

Metric

RZG

VBK

Issuer	Invesco	Vanguard
Expense ratio	0.35%	0.07%
1-yr instrumentality (as of 2026-01-09)	15.9%	14.4%
Dividend yield	0.4%	0.5%
AUM	$108.6 million	$39.7 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VBK is markedly much affordable with a 0.07% disbursal ratio compared to RZG’s 0.35%, and it pays a somewhat higher dividend yield. The interest spread favors VBK for cost-conscious investors, portion the marginally higher output whitethorn besides entreaty to those seeking a tiny income boost.

Metric

RZG

VBK

Max drawdown (5 y)	-38.31%	-38.39%
Growth of $1,000 implicit 5 years	$1,154	$1,145

VBK tracks a wide scale of U.S. small-cap maturation companies and presently holds 579 stocks, with a assemblage tilt toward exertion (27%), industrials (21%), and healthcare (18%). Its largest azygous positions see Insmed Inc. (NASDAQ:INSM) astatine 1.44%, Comfort Systems USA Inc. (NYSE:FIX) astatine 1.13%, and SoFi Technologies Inc. (NASDAQ:SOFI) astatine 1.11% of assets. The fund’s 22-year way grounds and diversified holdings whitethorn assistance trim idiosyncratic hazard compared to much concentrated strategies.

RZG, by contrast, is built astir the S&P SmallCap 600 Pure Growth Index, with a sharper absorption connected healthcare (26%), followed by industrials (18%) and fiscal services (16%). Its apical holdings — ACM Research Inc. (NASDAQ:ACMR), PTC Therapeutics Inc. (NASDAQ:PTCT), and Progyny Inc. (NASDAQ:PGNY) — each represents a somewhat larger portion of the portfolio than VBK’s apical names. With 131 stocks, RZG is little diversified and whitethorn beryllium much delicate to swings successful its favored sectors.