Core Insights - The Vanguard Russell 1000 Growth ETF (VONG) and the Vanguard Growth ETF (VUG) are both designed for investors seeking exposure to large-cap U.S. growth stocks, but they track different indexes and exhibit subtle differences in sector allocations and portfolio breadth [1][7] Cost and Size Comparison - VUG has a lower expense ratio of 0.04% compared to VONG's 0.07% - As of December 28, 2025, VUG's one-year return is 18.02%, while VONG's is 17.17% - VUG has a dividend yield of 0.42%, slightly lower than VONG's 0.45% - VUG has a larger assets under management (AUM) of $353 billion compared to VONG's $45 billion [3] Performance and Risk Comparison - Over the last five years, VUG has a maximum drawdown of -35.61%, while VONG's is -32.71% - A $1,000 investment in VUG would grow to $1,970 over five years, compared to $2,010 for VONG [4] Portfolio Composition - VONG tracks the Russell 1000 Growth Index and holds 391 stocks, with 55% in technology, 13% in consumer cyclical, and 12% in communication services - VUG tracks the CRSP US Large Cap Growth Index and holds 160 stocks, with 53% in technology and 14% each in communication services and consumer cyclical [5][6] Diversification and Investment Strategy - VUG's smaller portfolio of 160 holdings may lead to higher volatility and greater potential for outperformance if those stocks succeed - VONG's greater diversification with 391 stocks may limit risk during market volatility, but it also increases the chance of lower performers diluting earnings [8][9]

Core Insights - The article compares two low-cost Vanguard ETFs, the Vanguard Mega Cap Growth ETF (MGK) and the Vanguard Russell 1000 Growth ETF (VONG), focusing on their diversification, sector exposure, and risk profiles for growth-focused investors [1][2]. Group 1: Fund Overview - Both MGK and VONG are passively managed funds from Vanguard that target U.S. large-cap growth stocks, with an expense ratio of 0.07% for both [3]. - As of December 27, 2025, MGK has a 1-year return of 17.59% and a dividend yield of 0.37%, while VONG has a 1-year return of 15.46% and a higher dividend yield of 0.45% [3]. Group 2: Performance & Risk Metrics - Over the past five years, MGK has a maximum drawdown of -36.02%, compared to VONG's -32.72%, indicating MGK's higher volatility [4]. - An investment of $1,000 in MGK would have grown to $2,080 over five years, while the same investment in VONG would have grown to $2,010 [4]. Group 3: Portfolio Composition - VONG tracks the Russell 1000 Growth Index, holding 391 stocks with a significant allocation of 55% in technology, while MGK is more concentrated with only 66 stocks and a 58% allocation in technology [5][6]. - The top holdings for both funds include Nvidia, Apple, and Microsoft, but MGK has higher individual weights in these stocks, leading to greater concentration risk [6]. Group 4: Investment Implications - VONG offers greater diversification with nearly 400 stocks, reducing concentration risk compared to MGK's 66 stocks [7]. - While MGK has outperformed VONG in the past year and five years, the marginal difference in performance suggests that MGK's higher risk may not have yielded significantly better returns [8]. - Future performance may favor MGK if the tech sector continues to thrive, but VONG's diversification could mitigate risks during potential tech downturns [9].

Explore how each ETF’s sector mix, risk profile, and cost structure could shape your growth investing strategy.Vanguard Russell 1000 Growth ETF (VONG 0.47%) and iShares Russell 2000 Growth ETF (IWO 1.17%) target different corners of the U.S. growth equity market, with VONG leaning large-cap and IWO focusing on small-cap stocks -- resulting in notable differences in cost, risk, and sector exposure.Both funds aim to capture growth in U.S. equities, but VONG tracks large, established companies from the Russell ...

Core Insights - The Vanguard Growth ETF (VUG) and the Vanguard Russell 1000 Growth ETF (VONG) are both large-cap U.S. growth funds, with VONG offering broader diversification and lower volatility, while VUG has slightly better recent returns and lower costs [1][7]. Cost & Size Comparison - VUG has an expense ratio of 0.04% compared to VONG's 0.07%, making VUG more cost-effective for fee-conscious investors [3]. - As of December 9, 2025, VUG's one-year return is 16.47%, while VONG's is 15.88% [3]. - VUG has assets under management (AUM) of $353.0 billion, significantly higher than VONG's $45.6 billion [3][10]. Performance & Risk Metrics - Over five years, VUG has a maximum drawdown of -35.61%, while VONG's is -32.72% [4]. - A $1,000 investment in VUG would grow to $1,984 over five years, compared to $2,028 for VONG [4]. Holdings & Sector Allocation - VONG holds 391 stocks with a sector mix heavily weighted towards technology (55%), followed by consumer cyclical (13%) and communication services (12%) [5]. - VUG is more concentrated with 160 holdings, also leaning towards technology (53%), communication services (14%), and consumer cyclical (14%) [6]. - Both funds have similar top holdings, including major tech companies like Nvidia, Apple, and Microsoft [5][6]. Diversification & Liquidity - VONG's larger number of holdings may provide better diversification, potentially limiting risk, while VUG's smaller selection could lead to higher earnings if the selected stocks perform well [9]. - VUG's higher AUM contributes to greater liquidity, facilitating easier buying and selling of shares [10].

Core Viewpoint - The Vanguard Russell 1000 Growth ETF (VONG) is a significant player in the Large Cap Growth segment of the US equity market, with over $30.51 billion in assets, making it one of the largest ETFs in this category [1]. Group 1: ETF Overview - VONG is a passively managed ETF launched on September 22, 2010, sponsored by Vanguard [1]. - The ETF aims to match the performance of the Russell 1000 Growth Index, which tracks large-capitalization growth stocks in the US [7]. Group 2: Investment Characteristics - Large cap companies, typically with market capitalizations above $10 billion, are generally stable with predictable cash flows and lower volatility compared to mid and small cap companies [2]. - Growth stocks, which VONG focuses on, exhibit faster growth rates and higher valuations, but they carry more risk compared to value stocks [3]. Group 3: Cost and Performance - VONG has an annual operating expense of 0.07%, making it one of the least expensive ETFs in its category, with a 12-month trailing dividend yield of 0.48% [4]. - The ETF has gained approximately 9.88% year-to-date and 20.22% over the past year, with a trading range between $82.51 and $115.87 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation of about 52.7% to the Information Technology sector, followed by Consumer Discretionary and Telecom [5]. - Nvidia Corp (NVDA) constitutes approximately 12.52% of total assets, with Microsoft Corp (MSFT) and Apple Inc (AAPL) also being major holdings [6]. Group 5: Risk Assessment - VONG has a beta of 1.13 and a standard deviation of 20.7% over the trailing three-year period, categorizing it as a medium risk investment [8]. - The ETF holds around 389 different stocks, effectively diversifying company-specific risk [8]. Group 6: Alternatives - VONG holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected returns and favorable expense ratios [9]. - Other similar ETFs include Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $182.44 billion in assets and an expense ratio of 0.04%, while QQQ has $364.63 billion and charges 0.2% [10]. Group 7: Conclusion - Passively managed ETFs like VONG are increasingly popular among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].

Core Viewpoint - The article discusses the challenges of selecting the best Vanguard ETF to invest in, highlighting the overwhelming number of options available and the current market dynamics that influence investment decisions. Group 1: ETF Selection Challenges - There are over 12,000 ETFs available, making the selection process difficult for investors [1] - Vanguard alone offers 94 ETFs, adding to the complexity of choosing the right fund [1] Group 2: Valuation Concerns - The Vanguard S&P 500 ETF (VOO) is typically a default choice but has a high price-to-earnings ratio of 26, raising valuation concerns [4] - The S&P 500 Shiller CAPE ratio is near its third-highest level ever, which also affects growth-oriented Vanguard funds like the Vanguard Russell 1000 Growth ETF (VONG) [4] Group 3: Performance and Risks - The Vanguard FTSE Europe ETF (VGK) has performed well this year with a 24% increase, but potential tariffs from the Trump administration could negatively impact European stocks [5] - The Vanguard Total Bond Market ETF (BND) could be a good option if rate cuts are anticipated, but tariffs may lead to inflation concerns [6] Group 4: Recommended ETF - The Vanguard Utilities ETF (VPU) is recommended as the best option for investing $500 currently, owning 69 utility stocks with over 61% in electric utilities [7] - The fund's valuation is more reasonable at approximately 20.8 times earnings, and it is less affected by tariffs and inflation [8] - The Vanguard Utilities ETF offers a dividend yield of 2.83%, making it attractive for defensive investors [9] Group 5: Future Considerations - The Vanguard Utilities ETF may not be the best-performing fund in the long term, but it is currently the most suitable choice given the market uncertainties [11][12]