Vanguard's VONG or iShares' IJT: Which Growth ETF Should Long-Term Investors Choose?
Compare sector exposure, risk profiles, and income potential as these two growth ETFs take different approaches to capturing U.S. market gains.
By Sara Appino
Investors choosing between Vanguard Russell 1000 Growth ETF (VONG +1.34%) and iShares S&P Small-Cap 600 Growth ETF (IJT +1.91%) are essentially weighing large-cap technology dominance against the diversified growth potential of American small-cap stocks.
Both funds prioritize capital appreciation, but they operate at opposite ends of the market capitalization spectrum. While IJT targets small companies that could become tomorrow's leaders, VONG tracks an index of the largest growth-oriented corporations in the U.S., offering exposure to well-established, high-performing entities.
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.
The Vanguard fund is more affordable, carrying an expense ratio of 0.06% compared to 0.18% for the iShares fund. Additionally, the iShares fund offers a slightly higher payout for income-seeking investors, with a 0.70% trailing-12-month distribution yield versus 0.40% for its counterpart.
Performance & risk comparison
What's inside
The Vanguard Russell 1000 Growth ETF (VONG +1.34%) focuses on large-capitalization companies, with sector exposure including technology at 51%, communication services at 13%, and consumer cyclical at 13%. It manages 394 holdings, and its largest positions include Nvidia (NVDA +3.08%) at 13.07%, Apple (AAPL +0.86%) at 11.95%, and Microsoft (MSFT +0.19%) at 8.96%. Launched in 2010, the Vanguard fund has a trailing-12-month dividend of $0.56 per share.
The iShares S&P Small-Cap 600 Growth ETF (IJT +1.91%) targets smaller firms, with primary sector weights in technology at 21%, industrials at 19%, and healthcare at 15%. Launched in 2000, it maintains 368 holdings and has a trailing-12-month dividend of $1.21 per share. Its top holdings include Sanmina (SANM 0.53%) at 1.60%, Viavi Solutions (VIAV 3.20%) at 1.51%, and Formfactor (FORM +6.86%) at 1.40%.
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What this means for investors
The debate between large-cap and small-cap growth investing has never been fully settled, and the past decade has tilted it decisively toward the large-cap side. Megacap technology companies have delivered returns that smaller growth stocks simply could not match, driven by scale, pricing power, and dominance in artificial intelligence. That environment has consistently rewarded investors who stayed close to the top of the market.
Small-cap growth stocks do have their moment, typically when the economy is expanding broadly and investors are willing to take on more risk for higher potential returns. IJT has an edge over many small-cap growth funds: its S&P SmallCap 600 index requires profitability before admission, filtering out the weakest names before they drag down returns.
VONG charges a third of what IJT does, has delivered stronger long-term returns, and carries lower historical drawdowns. For most long-term investors, VONG is the stronger foundation. IJT works best as a complement for those who want small-cap growth exposure alongside an existing large-cap core, and who value the quality screen that keeps the worst small-cap names out of the portfolio.