Vanguard Small-Cap Growth ETF vs S&P 500 Growth ETF: Which ETF Will Deliver the Best Growth in 2026?
Key Points
Vanguard Small-Cap Growth ETF offers a slightly lower expense ratio of 0.05% compared to 0.07% for Vanguard S&P 500 Growth ETF
Vanguard S&P 500 Growth ETF provides much higher concentration in the technology sector and significantly better five-year growth of $1,000
Vanguard Small-Cap Growth ETF maintains a more diversified portfolio with 550 holdings versus 146 for the large-cap growth fund
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Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) focuses on the largest growth engines in the U.S. economy, while Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) prioritizes smaller companies with higher theoretical expansion potential.
Investors seeking growth exposure often choose between established giants and up-and-coming smaller firms. This matchup compares two low-cost Vanguard funds that approach the growth factor from opposite ends of the market-capitalization spectrum. One tracks large-cap leaders, while the other captures smaller companies with high growth potential.
Snapshot (cost & size)
| Metric | VBK | VOOG |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Share price | $351.83 (as of 2026-07-08) | $81.89 (as of 2026-07-08) |
| Expense ratio | 0.05% | 0.07% |
| 1-yr return (as of July 8, 2026) | 26.40% | 24.60% |
| Dividend yield | 0.40% | 0.50% |
| Beta | 1.16 | 1.17 |
| AUM | $45.5B | $26.5B |
| Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. |
Both funds are exceptionally affordable compared to the broader ETF universe. While the Vanguard Small-Cap Growth ETF offers a slightly lower expense ratio of 0.05%, the 0.07% cost for the Vanguard S&P 500 Growth ETF is still minimal.
Performance & risk comparison
| Metric | VBK | VOOG |
|---|---|---|
| Max drawdown (5 yr) | (38.40%) | (32.70%) |
| Growth of $1,000 over 5 years (total return) | $1,252 | $1,894 |
What's inside
Vanguard S&P 500 Growth ETF concentrates on 146 holdings that represent the growth-oriented portion of the S&P 500. Its sector allocation is heavily weighted toward technology at 53%, followed by communication services at 17% and consumer cyclicals at 9%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 14.3%, Microsoft Corp (NASDAQ:MSFT) at 9.3%, and Apple Inc (NASDAQ:AAPL) at 6.4%. The fund 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 ~$82 share price works out to a 0.50% yield.
In contrast, the Vanguard Small-Cap Growth ETF provides broader diversification with 550 holdings from the CRSP U.S. Small Cap Growth Index. This portfolio is less top-heavy, with sector weights including technology at 28.5%, industrials at 24.6%, and healthcare at 14.9%. Its largest positions include Astera Labs Inc (NASDAQ:ALAB) at 1.4%, Ciena Corp (NYSE:CIEN) at 1.1%, and Rocket Lab Corp (NASDAQ:RKLB) at 1.1%. The fund was launched in 2004. Vanguard Small-Cap Growth ETF has paid $1.53 per share over the trailing 12 months, which on its recent ~$352 share price works out to a 0.40% yield.
Which fund is the better buy?
Besides both being from Vanguard and generally very low cost for ETFs, the Vanguard S&P 500 Growth ETF (VOOG) and the Small-Cap Growth ETF (VBK) are also almost exclusively U.S. companies, with both funds reporting about 99% of their holdings are U.S. firms. But there the similarities end.
VOOG is much more concentrated in its top 10 holdings, with 60% of its assets dedicated ot the group. VBK is just 10% in its top 10, meaning it delivers on the diversification expected with its much larger basket of stocks.
VOOG has performed well for investors, delivering annualized returns of 20.6%, 13.4%, and 15.5% over the 3-, 5-, and 10-year time frames.
VBK has returned 17.5%, 5.4%, and 12.2% in the 3-, 5-, and 10-year look-backs.
But with small caps having their best year since 1991, it’s no surprise VBK is besting its large-cap brethren in the 1-year return and year to date (21.4% to 12%). Both are good funds, but for investors looking for the best fund in 2026, VBK is a good bet to continue benefiting from the small-cap rally.
For more guidance on ETF investing, check out the full guide at this link.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Ciena, Microsoft, Nvidia, Rocket Lab, and Vanguard Index Funds - Vanguard Small-Cap Growth ETF. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
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