VOOG vs. IWO: Is S&P 500 Stability or Small-Cap Growth Potential the Better Buy Right Now?

Core Insights - The Vanguard S&P 500 Growth ETF (VOOG) and the iShares Russell 2000 Growth ETF (IWO) target U.S. growth stocks but differ significantly in their focus, with VOOG emphasizing large-cap established companies and IWO focusing on smaller, fast-growing firms [2] Cost & Size Comparison - VOOG has a lower expense ratio of 0.07% compared to IWO's 0.24% - As of January 25, 2026, VOOG's one-year return is 16.16%, while IWO's is 15.31% - VOOG has a dividend yield of 0.49% and IWO has a yield of 0.56% - VOOG has a five-year beta of 1.08, indicating lower volatility compared to IWO's beta of 1.45 - VOOG's assets under management (AUM) stand at $22 billion, while IWO's AUM is $13 billion [3][4] Performance & Risk Comparison - Over the past five years, VOOG experienced a maximum drawdown of -32.74%, while IWO faced a more severe drawdown of -42.02% - An investment of $1,000 in VOOG would have grown to $1,880, whereas the same investment in IWO would have grown to $1,097 [5][8] Portfolio Composition - IWO tracks 1,098 small-cap growth stocks, with significant allocations in healthcare (26%), technology (23%), and industrials (20%) - The largest positions in IWO include Bloom Energy, Credo Technology Group, and Kratos Defense & Security Solutions, each under 2% of total assets - VOOG is concentrated in large-cap U.S. growth stocks, with technology making up nearly 50% of its assets, followed by communication services and financial services - Top holdings in VOOG include Nvidia, Microsoft, and Apple, which collectively account for over 30% of its assets [6][7] Investor Implications - Growth ETFs cater to various investor preferences, with VOOG focusing on larger, more stable companies that may better withstand market volatility compared to smaller firms in IWO [10]