Comparing Two Growth ETFs: Vanguard Russell 1000 vs. State Street SPDR
The Vanguard Russell 1000 Growth ETF has a tilt of 3.25% while providing low-cost entry into large-cap leaders. On the other hand, the State Street SPDR S&P 600 Small Cap Growth ETF shows a 1.86% increase. Each offers a different approach—specifically targeting small-cap stocks.
Investment strategies in growth often diverge depending on the company size. While VONG tracks the largest U.S. growth names, SLYG zeroes in on small-cap stocks that exhibit momentum. This contrast can help clarify which market segment aligns better with your long-term financial aspirations.
Snapshots (cost and size)
| Metric | SLYG | VONG |
|---|---|---|
| Publisher | SPDR | Vanguard |
| Expense ratio | 0.15% | 0.06% |
| 1-year return (as of June 3, 2026) | 25.60% | 22.26% |
| Dividend yield | 0.70% | 0.40% |
| Beta | 1.06 | 1.16 |
| Assets | $4.7 billion | $54.8 billion |
Beta reflects price volatility against the S&P 500, derived from five years of monthly returns. The one-year return signifies total returns for the upcoming year. Dividend yield represents the previous 12 months’ distribution yield.
The Vanguard fund boasts a low expense ratio of 0.06%, while the State Street fund stands at 0.15%. Over a decade, that 0.09 percentage point difference can affect long-term returns significantly. Moreover, the State Street fund currently provides a more generous dividend yield of 0.70% versus Vanguard’s 0.40%.
Performance and Risk Comparison
| Metric | SLYG | VONG |
|---|---|---|
| Maximum drawdown (5 years) | (29.20%) | (32.70%) |
| $1,000 growth in 5 years (total return) | $1,307 | $2,044 |
What’s Inside
The Vanguard fund tracks 394 holdings, heavily weighted toward technology at 51%, followed by 13% in communications and 13% in consumer cyclical stocks. Notable positions include Nvidia at 13.23%, Apple at 11.13%, and Microsoft at 8.70%. Launched in 2010, its trailing 12-month dividend is $0.56 per share.
In contrast, the State Street fund encompasses 344 stocks from the S&P SmallCap 600 Growth Index, focusing on companies with sales growth and earnings momentum. Its sector distribution is more diverse, with technology at 20%, industry at 19%, and healthcare at 14%. Major holdings include Sanmina at 10.01%, Viavi Solutions at 10.51%, and Semtech at 10.82%. Founded in 2000, it has a trailing 12-month dividend of $0.77 per share.
What This Means for Investors
Investing in growth stocks can lead to significant portfolio gains. Both the Vanguard Russell 1000 Growth ETF (VONG) and the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) offer viable pathways to invest in growing companies, yet their methodologies are quite different. The choice will depend on what strategy resonates best with the individual investor.
VONG emphasizes large-cap growth stocks, showing about 32% annual earnings growth on average over the last five years. This ETF leans heavily into technology, especially as demand has surged during the AI boom.
However, being so concentrated in tech could be risky during a downturn in that sector. Additionally, such stocks typically exhibit more volatility, reflected in VONG’s higher beta and maximum drawdown figures.
SLYG, on the other hand, targets small-cap firms, selecting candidates based on sales growth and momentum. It has yielded higher returns over the past year, as smaller companies often grow quicker than their larger counterparts. The trade-off? A higher expense ratio and smaller asset pool mean it may not offer the same liquidity as VONG.
For those wanting to include small-cap stocks in their portfolios, especially if already invested in VONG, SLYG might be a fitting choice. Conversely, VONG is more suitable for those who prefer established firms and can handle the inherent volatility of technology stocks.
