Vanguard ETF Showdown: Is The Fund Giant's Growth ETF or Russell 1000 Growth ETF Better?

Vanguard funds are renowned for their low cost and generally peer-beating performance. Inside the Vanguard family, the choice between Vanguard Growth ETF (NYSEMKT:VUG) and Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) centers on whether an investor prefers a more concentrated portfolio or the broader reach of the Russell 1000.

Both funds target the aggressive growth segment of the U.S. equity market, focusing on companies with rapid earnings and sales expansion. This match-up explores differences in index methodology and portfolio breadth, noting that while they share several top holdings, their underlying benchmarks lead to different levels of assets under management (AUM) and concentration.

Snapshot (cost & size)

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 as of the close of trading June 16, 2026.

Vanguard Growth ETF maintains a razor-thin cost advantage with an expense ratio of 0.03%, compared to 0.06% for Vanguard Russell 1000 Growth ETF.

Performance & risk comparison

What's inside

The Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) focuses on capital appreciation by tracking the Russell 1000 Growth Index. This fund is broadly diversified across 387 holdings, though its sector weightings remain top-heavy. Its largest exposures are in technology at 53.9%, consumer cyclical at 12.7%, and communication services at 12.4%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 13.06%, Apple Inc (NASDAQ:AAPL) at 11.94%, and Microsoft Corp (NASDAQ:MSFT) at 8.95%. Launched in 2010, the fund has a trailing-12-month dividend of $0.56 per share. It primarily targets investors with longer time horizons who can withstand greater price volatility in pursuit of growth potential.

By comparison, the Vanguard Growth ETF (NYSEMKT:VUG) is more concentrated with 154 holdings. It tracks the CRSP U.S. Large Cap Growth Index, resulting in a slightly different sector mix: technology at 55.9%, communication services at 16.4%, and consumer cyclical at 11.8%. Its top holdings include Nvidia at 13.10%, Apple at 12.31%, and Microsoft at 8.99%. Launched in 2004, the fund has a trailing-12-month dividend of $0.33 per share. Despite the narrower basket, the fund employs a similar full-replication strategy to closely mirror its benchmark.

Which fund is the better bet?

The medieval theologian’s debate about how many angels can dance on the head of a pin comes to mind when comparing two of Vanguard’s stalwart growth funds. And by that I mean that while there can be a deep debate about which Vanguard fund is superior, it is ultimately a waste of time, since both funds are excellent choices for long-term investors seeking low-cost growth funds with proven track records. Still, there are slight differences worth taking into account.

VUG — the Vanguard Growth ETF — should be the more volatile fund because of its more concentrated holdings, and indeed it is, with a maximum drawdown almost three percentage points deeper than VONG, the Russell 1000 Growth ETF. Performance-wise, however, VUG and VONG trade positions about which is better over the 1-year, 3-year, 5-year, and 10-year time frames. In any of those cases, the other fund isn’t far behind in performance.

The one noticeable difference for investors choosing between them is whether to hold your Vanguard growth ETF in a taxable or non-taxable account, such as a 401(k). When accounting for distribution taxes, VONG is the superior product for those who will hold the fund in a taxable account. Over the past 10 years, VONG has returned 16.48% after taxes compared to 15.89% for VUG.

In either case, the Vanguard funds are heavenly additions to a long-term investor’s portfolio.

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

Brendan Coffey has positions in Vanguard Scottsdale Funds - Vanguard Russell 1000 Growth ETF. The Motley Fool has positions in and recommends Vanguard Growth ETF. The Motley Fool has a disclosure policy.