The Vanguard Growth ETF (VUG 0.09%) and the Vanguard Russell 1000 Growth ETF (VONG +0.12%) are both large-cap U.S. growth funds, but VONG offers broader diversification and marginally lower volatility, while VUG edges ahead very slightly on recent returns and cost.
VUG tracks the CRSP U.S. Large Cap Growth Index, and VONG follows the Russell 1000 Growth Index. Investors comparing these two may focus on differences in holdings count, volatility, and recent performance, as well as subtle distinctions in sector allocation.
Snapshot (cost & size)
| Metric | VUG | VONG |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.04% | 0.07% |
| 1-yr return (as of Dec. 9, 2025) | 16.47% | 15.88% |
| Dividend yield | 0.42% | 0.45% |
| AUM | $353.0 billion | $45.6 billion |
| Beta (5Y monthly) | 1.23 | 1.17 |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VUG is more affordable on fees with a lower expense ratio, while both funds deliver roughly the same low dividend yield -- making cost the main differentiator for fee-conscious investors.
Performance & risk comparison
| Metric | VUG | VONG |
|---|---|---|
| Max drawdown (5 y) | -35.61% | -32.72% |
| Growth of $1,000 over 5 years | $1,984 | $2,028 |
What's inside
VONG holds 391 stocks, tracking the Russell 1000 Growth Index. Its sector mix leans heavily on technology (55%), with sizable allocations to consumer cyclical (13%) and communication services (12%). The top holdings are among the largest names in the tech industry, including Nvidia, Apple, and Microsoft. The fund has a 15-year history and no notable quirks or structural surprises.
VUG is more concentrated, with 160 holdings and a similar sector tilt: technology at 53%, communication services at 14%, and consumer cyclical at 14%. Its largest positions match VONG's, but they make up slightly less of the overall portfolio.
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What this means for investors
VONG and VUG both provide exposure to the world's largest tech companies, with both funds heavily tilted toward the tech sector.
In many ways, these funds are very similar. They both focus predominantly on large-cap growth stocks, they offer nearly identical expense ratios and dividend yields, and they've earned similar one- and five-year total returns.
VUG has a slightly higher beta and more significant max drawdown, suggesting greater price volatility over the last few years. However, those figures are not significantly higher than VONG's, so investors likely won't notice a major difference between the two ETFs.
VONG and VUG also have similar portfolio allocations, with top holdings and sectors that are nearly identical across the two ETFs. The main differentiator for most people, then, will come down to diversification.
VONG includes far more stocks than VUG (391 compared to 160), which can be an advantage for investors looking to gain exposure to more growth stocks. A greater number of holdings can help limit risk, but in some cases, it can also dilute a fund's earnings if many of those stocks underperform.
VUG's smaller selection of stocks reduces its diversification, but if most of the holdings are strong performers, that could work to its advantage, resulting in higher earnings over time.
Finally, VUG's much higher AUM can result in greater liquidity, making it easier to buy and sell. While that may not make an enormous difference for long-term investors, it's a factor to consider when deciding between these two very similar investments.
Glossary
ETF: Exchange-Traded Fund; a fund that trades on stock exchanges like a single stock.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges its shareholders.
Dividend yield: Annual dividends paid by a fund divided by its current share price, expressed as a percentage.
Index: A benchmark representing a segment of the financial market, used to track performance.
Volatility: The degree of variation in a security's price over time, indicating risk.
Beta: A measure of a fund's price movement relative to the overall market (S&P 500).
AUM: Assets under management; the total market value of assets managed by a fund.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a period.
Sector allocation: The distribution of a fund's investments across different industry sectors.
Holdings: The individual securities or assets owned by a fund.
Diversification: Spreading investments across various assets to reduce risk.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
