Which Is the Better Growth-Focused ETF, Vanguard's Large-Cap VONG or State Street's Small-Cap SLYG?
Key Points
The Vanguard Russell 1000 Growth ETF focuses on large-cap leaders like Nvidia while the State Street SPDR S&P 600 Small Cap Growth ETF targets smaller high-momentum companies.
The Vanguard Russell 1000 Growth ETF carries a lower expense ratio of 0.06% compared to the 0.15% fee for State Street SPDR S&P 600 Small Cap Growth ETF.
The State Street SPDR S&P 600 Small Cap Growth ETF offers a slightly higher dividend yield of 0.70% versus 0.40% for the Vanguard fund.
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The Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) provides low-cost exposure to large-cap giants, while the State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) offers a niche strategy focused on small-cap stocks.
Growth investing strategies often diverge significantly based on the size of the underlying businesses. While VONG tracks the largest and most dominant U.S. growth leaders, SLYG focuses on small-cap companies with high momentum. This comparison helps clarify which market segment and risk profile may better suit your long-term financial goals.
Snapshot (cost & size)
| Metric | SLYG | VONG |
|---|---|---|
| Issuer | SPDR | Vanguard |
| Expense ratio | 0.15% | 0.06% |
| 1-yr return (as of June 3, 2026) | 25.60% | 22.26% |
| Dividend yield | 0.70% | 0.40% |
| Beta | 1.06 | 1.16 |
| AUM | $4.7 billion | $54.8 billion |
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.
The Vanguard fund is significantly more affordable, sporting an expense ratio of 0.06% compared to the 0.15% charged by the State Street fund. Over a decade, this 0.09 percentage point gap can result in noticeable differences in total returns for long-term investors. Additionally, the State Street fund currently offers a higher payout, with a 0.70% yield versus the 0.40% yield from the Vanguard fund.
Performance & risk comparison
| Metric | SLYG | VONG |
|---|---|---|
| Max drawdown (5 yr) | (29.20%) | (32.70%) |
| Growth of $1,000 over 5 years (total return) | $1,307 | $2,044 |
What's inside
The Vanguard fund tracks 394 holdings, heavily weighted toward technology at 51%, followed by communication services at 13% and consumer cyclical stocks at 13%. Its largest positions include Nvidia (NASDAQ:NVDA) at 13.23%, Apple (NASDAQ:AAPL) at 11.13%, and Microsoft (NASDAQ:MSFT) at 8.70%. Launched in 2010, the fund has a trailing-12-month dividend of $0.56 per share.
In contrast, the State Street fund targets 344 holdings within the S&P SmallCap 600 Growth Index, which selects companies based on sales growth and earnings momentum. Its sector mix is more balanced, led by technology at 20%, industrials at 19%, and healthcare at 14%. Its largest positions include Sanmina (NASDAQ:SANM) at 1.79%, Viavi Solutions (NASDAQ:VIAV) at 1.44%, and Semtech (NASDAQ:SMTC) at 1.27%. Launched in 2000, it has a trailing-12-month dividend of $0.77 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Investing in growth stocks is a great way to achieve strong returns for your portfolio. The Vanguard Russell 1000 Growth ETF (VONG) and the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) both offer an efficient way to gain exposure to growth companies, but employ very different strategies to do so. Choosing which fund to invest in depends on the approach that makes the most sense for the individual investor.
VONG targets large-cap growth stocks, and its holdings possess an average annual earnings growth rate over the past five years of about 32%. The ETF is heavily weighted towards the technology sector since the artificial intelligence boom powered sales for companies in this industry.
However, this substantial tech exposure can cause the fund’s performance to suffer if the sector experiences a downturn. Moreover, technology stocks tend to have more volatility, as evidenced by VONG’s higher beta and max drawdown.
SLYG focuses on small-cap companies, using characteristics such as sales growth and momentum as criteria for inclusion. Since smaller enterprises can often grow faster than larger companies, SLYG delivered a higher one-year return. The fund’s downsides include a much larger expense ratio and a smaller AUM, which doesn’t provide the level of liquidity afforded by VONG.
SLYG is the ETF for investors who want exposure to small-cap stocks, especially if their portfolio already contains many of the holdings in VONG. Meanwhile, VONG is the ETF for investors who desire well-known companies, and don’t mind the volatility inherent in the tech sector.
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Robert Izquierdo has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Viavi Solutions. The Motley Fool has a disclosure policy.
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