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Should Vanguard Russell 1000 Growth ETF (VONG) Be on Your Investing Radar?

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The Vanguard Russell 1000 Growth ETF (VONG - Free Report) was launched on September 22, 2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

The fund is sponsored by Vanguard. It has amassed assets over $32.94 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.45%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 53% of the portfolio. Consumer Discretionary and Telecom round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 13.09% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).

Performance and Risk

VONG seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of large-capitalization growth stocks in the United States.

The ETF has added about 18.15% so far this year and is up about 25.37% in the last one year (as of 10/24/2025). In the past 52-week period, it has traded between $82.51 and $122.19.

The ETF has a beta of 1.12 and standard deviation of 19.77% for the trailing three-year period, making it a medium risk choice in the space. With about 394 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Russell 1000 Growth ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VONG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $196.92 billion in assets, Invesco QQQ has $395.97 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


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