The Vanguard Russell 1000 Development ETF (NASDAQ:VONG) provides low-cost publicity to large-cap giants, whereas the iShares Russell 2000 Development ETF (NYSEMKT:IWO) targets smaller firms with probably larger volatility and worth sensitivity.
Development buyers usually face a selection between established market leaders and rising innovators. The Vanguard fund tracks the large-cap progress market, providing publicity to the world’s most dominant companies, whereas the iShares fund focuses on small-cap shares which will provide larger progress potential however are extra price-sensitive.
Snapshot (price & measurement)
|
Metric |
IWO |
VONG |
|---|---|---|
|
Issuer |
iShares |
Vanguard |
|
Expense ratio |
0.24% |
0.06% |
|
1-yr return (as of Might 18, 2026) |
30.6% |
24.3% |
|
Dividend yield |
0.4% |
0.4% |
|
Beta |
1.19 |
1.16 |
|
AUM |
$14.2 billion |
$44.9 billion |
Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year month-to-month returns. The 1-yr return represents whole return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Value-conscious buyers would possibly discover the Vanguard fund notably enticing given its 0.06% expense ratio, which is one-quarter the iShares fund’s 0.24% charge. Each funds at present provide an identical dividend yield of 0.4%.
Efficiency & threat comparability
|
Metric |
IWO |
VONG |
|---|---|---|
|
Max drawdown (5 yr) |
(40.5%) |
(32.7%) |
|
Development of $1,000 over 5 years (whole return) |
$1,287 |
$2,068 |
What’s inside
The Vanguard Russell 1000 Development ETF (VONG) gives publicity to roughly 394 holdings, with the know-how sector accounting for 51% of the portfolio. Different main allocations embrace communication companies at 13% and client cyclical shares at 13%. Its largest positions embrace Nvidia Corp (NASDAQ:NVDA) at 13.21%, Apple Inc (NASDAQ:AAPL) at 11.11%, and Microsoft Corp (NASDAQ:MSFT) at 8.68%. Launched in 2010, the fund has a trailing-12-month dividend of $0.56 per share and seeks to reflect the efficiency of huge U.S. progress firms.
By comparability, the iShares Russell 2000 Development ETF (IWO) targets the small-cap phase with a portfolio that displays know-how at 24%, industrials at 23%, and healthcare at 22%. Its largest holdings embrace Bloom Vitality Corp (NYSE:BE) at 3.36%, Fabrinet (NYSE:FN) at 1.50%, and Credo Expertise Group Holding Ltd (NASDAQ:CRDO) at 1.50%. This fund, launched in 2000, manages its publicity by means of a method that at present reveals one major holding in its reported knowledge. It has paid $1.51 per share over the trailing 12 months.
For extra steering on ETF investing, take a look at the complete information at this hyperlink.
Which appears like the higher purchase
The Vanguard Russell 1000 Development ETF (VONG) and the iShares Russell 2000 Development ETF (IWO) are each ETFs price contemplating, notably for growth-oriented buyers. Listed below are some key variations between the 2.