Growth ETFs: VONG Has Delivered Excellent Returns, But VBK Provides More Diversification

Jake Lerch, The Motley Fool

Fri, June 5, 2026 astatine 9:07 AM CDT 5 min read

The prime betwixt Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) and Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) hinges connected whether an capitalist seeks vulnerability to established large-cap exertion giants oregon smaller maturation companies.

Both funds service arsenic halfway growth-building blocks, but they run astatine other ends of the marketplace capitalization spectrum. While the Vanguard Russell 1000 Growth ETF tracks the Russell 1000 Growth Index to seizure momentum from the largest U.S. companies, the Vanguard Small-Cap Growth ETF targets smaller firms that whitethorn beryllium successful earlier, much assertive enlargement phases.

Snapshot (cost & size)

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

These Vanguard funds are among the astir affordable successful their categories. VBK has a flimsy borderline with an disbursal ratio of 0.05% compared to VONG’s 0.06%. Both funds presently connection an identical trailing-12-month organisation output of 0.40%.

Performance & hazard examination

What's wrong

The Vanguard Russell 1000 Growth ETF (VONG) provides concentrated vulnerability to the large maturation engines of the U.S. market, with exertion firms accounting for 51% of its weight. Its portfolio includes 394 holdings, and its largest positions are Nvidia (NASDAQ:NVDA) astatine 13.23%, Apple (NASDAQ:AAPL) astatine 11.13%, and Microsoft (NASDAQ:MSFT) astatine 8.70%. This money was launched successful 2010 and has a trailing-12-month dividend of $0.56 per share. It whitethorn entreaty to those seeking stableness from dominant, cash-rich exertion companies that person led caller marketplace cycles.

The Vanguard Small-Cap Growth ETF (VBK) offers a antithetic hazard illustration by tracking the CRSP US Small Cap Growth Index crossed 579 holdings. Its assemblage allocation is much balanced than the large-cap fund, with exertion astatine 26%, industrials astatine 25%, and healthcare astatine 15% of the portfolio. Its largest positions see Bloom Energy (NYSE:BE) astatine 1.11%, Ciena (NYSE:CIEN) astatine 1.10%, and Comfort Systems USA (NYSE:FIX) astatine 0.95%. Launched successful 2004, the money paid $1.58 per stock implicit the trailing 12 months. Because it lacks the dense attraction successful mega-cap technology, it whitethorn supply utile diversification for portfolios already tilted toward the S&P 500.