Vanguard's VOOG and VONG ETFs Offer Distinct Paths to Growth

Vanguard S&P 500 Growth ETF and Vanguard Russell 1000 Growth ETF both offer low-cost access to large-cap U.S. growth stocks, but differ on diversification and subtle sector tilts.

Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) each aim to capture the performance of leading U.S. growth companies. While both track established growth benchmarks and share similar low fees, they differ in portfolio breadth, sector weights, and how narrowly they target the growth universe.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; figures use five-year weekly returns.

Both funds are equally affordable with matching expense ratios, but VOOG edges out VONG by offering a slightly higher yield for income-focused investors: 0.5% versus 0.4%.

Performance & risk comparison

What's inside

VOOG tracks the growth segment of the S&P 500, focusing on large U.S. companies with a 15.1-year track record. Its portfolio holds 217 stocks, with 43% in technology, 15% in communication services, and 12% in consumer discretionary (sector allocation as reported by Financial Modeling Prep). The top positions include NVIDIA, Microsoft, and Apple, each with modest weightings, reflecting the fund’s broad diversification across the S&P’s growth leaders.

VONG, by contrast, draws from the broader Russell 1000 Growth Index, holding 391 stocks and tilting even more heavily toward technology at 61.5%. It also provides meaningful exposure to consumer discretionary (18%) and industrials (8.5%), based on sector allocation data from Financial Modeling Prep. Its largest holdings—NVIDIA, Microsoft, and Apple—are distributed across a broader range of companies.

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Foolish take

Investors looking for low-cost ETFs could benefit from researching both Vanguard funds. They have much lower expense ratios compared to the average expense ratio of similar funds. According to the most recent data available from Morningstar, the average expense ratio is 0.93%.

VOOG and VONG are both domestic-oriented funds with zero and 0.6% international holdings, respectively. VOOG and its benchmark contain stocks with a somewhat lower price-to-earnings (P/E) ratio on average. Investors who took on slightly more risk with VONG have been rewarded with a higher five-year average annual return.

Investors need to take their own needs and risk appetite into account when deciding between these two ETFs. For those who can stomach more volatility, VONG could continue to provide a slightly higher long-term return, though with slightly more risk.

Glossary

ETF: Exchange-traded fund; a fund that trades on stock exchanges like a stock, holding a basket of assets.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market; above 1 means more volatile.
AUM: Assets under management; the total market value of assets a fund manages for investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Growth of $1,000: The total value a $1,000 investment would reach over a set time, including gains and losses.
S&P 500 Growth: An index tracking the growth-oriented stocks within the S&P 500, focusing on companies expected to grow faster than average.
Russell 1000 Growth Index: An index of large U.S. growth stocks, representing companies in the Russell 1000 with higher growth potential.
Sector allocation: The distribution of a fund's investments across different industry sectors, like technology or healthcare.
Consumer cyclicals: Companies whose business performance is closely tied to the economic cycle, like retailers or automakers.

Howard Smith has positions in Apple, Microsoft, and Nvidia and has the following options: short November 2025 $165 calls on Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.