VONG vs. QQQ: Which Growth ETF Is the Better Buy?
Key Points
These two ETFs -- one from Vanguard and one from Invesco -- have similar tech-heavy holdings.
QQQ might have a cheaper valuation than VONG, but it also has a somewhat higher expense ratio.
If you want a tech-heavy portfolio, the QQQ ETF might be the easiest way to buy those names.
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The first quarter of 2026 has been a strange time for technology stocks. The tech-heavy Nasdaq-100 index is down 1.2% year to date, slightly underperforming the S&P 500 index.
If you want to buy the dip on technology stocks, two popular stock exchange-traded funds (ETFs) offer an easy way to do it. The Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) invests in a tech-heavy portfolio of large-cap U.S. growth stocks. Or you could just buy the entire Nasdaq-100 index with the popular Invesco QQQ Trust ETF (NASDAQ: QQQ), which tracks the performance of the 100 largest nonfinancial Nasdaq-listed stocks.
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Let's take a closer look at these two U.S. growth stock ETFs and see how to choose one.
Image source: Getty Images.
VONG: A tech-heavy portfolio of 391 stocks
The Vanguard Russell 1000 Growth ETF owns 391 stocks, so just by sheer size, it's more diversified than the QQQ. But the VONG's allocation is heavy on tech: 59.7% of the fund's holdings are in technology stocks. Its top five holdings are Nvidia (12.7% of the fund), Apple (10.8%), Microsoft (9.2%), Amazon (4.8%), and Broadcom (4.6%).
The VONG has gained about 24% in the past year, slightly underperforming the 28.4% gain of the Nasdaq-100 index (which gained 28.4%). This Vanguard ETF has a strong performance track record over the past several years. The fund's average annual returns are 26% in the past three years, 14.3% in the past five years, and 18.1% in the past 10 years.
The Vanguard Russell 1000 Growth ETF charges an expense ratio of 0.06%. If you want a tech-heavy portfolio of stocks at a low cost, this ETF could be a good buy.
QQQ: Track the Nasdaq-100 index at a low cost
The Invesco QQQ Trust ETF lets you own the entire Nasdaq-100 index in an easy low-cost way. This fund's expense ratio is 0.18%. As of Feb. 27, the fund had delivered average annual returns (by net asset value) of 20.1% in the past year, 28.2% for the past three years, 14.8% for the past five years, and 20.4% for the past 10 years.
The QQQ holds 102 stocks, but it's about equally as tech-heavy as the VONG, with 59.8% of its holdings allocated to the Technology sector as of Feb. 27. And the QQQ's top five holdings (as of March 8) are mostly the same names as the VONG: Nvidia (8.7% of the fund), Apple (7.5%), Microsoft (5.9%), Amazon (4.5%), and Tesla (3.9%).
The QQQ might be slightly undervalued compared to the VONG. The price-to-earnings ratio for the Invesco QQQ Trust ETF is 33.3, while the VONG has a P/E ratio of 35.0. If you want to own America's biggest tech names, the QQQ might be a more efficient choice than the Vanguard ETF.
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Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, and Tesla and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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