Is the Vanguard S&P 500 Growth ETF or iShares Small-Cap 600 Growth ETF the Better Fund in 2026?
Large-cap tech dominance delivers stronger five-year returns, but small-cap exposure offers diversification across industrials and healthcare with lower volatility.
Overview
Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) offers efficient access to the largest U.S. growth engines, whereas iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT) targets the aggressive expansion of smaller firms.
Growth investing can take vastly different forms depending on the market capitalization of the underlying companies. While both funds prioritize companies with strong expansion potential, they operate at opposite ends of the size spectrum, ranging from trillion-dollar tech titans to nimbler small-cap players. This comparison examines how these distinct baskets influence cost structures, volatility profiles, and long-term total return trajectories for different types of portfolios.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 23.
Source
Originally published at www.fool.com.