Is the Vanguard S&P 500 Growth ETF or iShares Small-Cap 600 Growth ETF the Better Fund in 2026?

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.

Which fund is the better buy?

These are very different funds, even as they both offer a wide selection of stocks in their portfolios.

VOOG, the Vanguard S&P 500 Growth ETF, is a fairly concentrated fund in multiple ways, with 94% of its holdings in large caps (mostly growth stocks) and 6% mid caps. VOOG is also heavily weighted in its top 10 holdings, with more than 56% of assets in that cohort. It is also wildly popular — its assets are now above the $1 trillion mark.

IJT, the iShares Small-Cap 600 Growth ETF, is a study in contrast to VOOG. It’s all in small caps, mostly in stocks considered a blend of value and growth. Just 10% of its assets are in its top 10 holdings, so poor performance by one or two names hardly dents the ETF performance. It’s not nearly as popular with investors at $4 billion assets, but that’s a comfortable level that means the ETF is viable for the long run.

Performance-wise IJT shows itself well. It has returned 16.9%, 7.2%, and 11.8% annualized returns over its 3-, 5-, and 10-year time frames. Given that small cap stocks are now enjoying their best year since 1991, IJT is catching the wave, with year-to-date returns of 27%.

VOOG, meanwhile, earns its popularity with 3-, 5-, and 10-year returns of 25.8%, 14.5%, and 18%, respectively. Its 2026 performance so far is also pretty good, even as it lags IJT at 12%.

So which fund is the better buy? They are stylistically so different and such good performers that neither is a bad choice. For its superior long-term performance, VOOG gets the nod over IJT for investors seeking an ETF for the long run.

For more guidance on ETF investing, check out the full guide at this link.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.