The first quarter of 2026 has been quite unusual for technology stocks. The Nasdaq-100 index, which is heavily tech-oriented, has seen a slight decline of 1.2% since the year started, contrasting with the S&P 500 index.
If you’re thinking of jumping into tech stocks, there are two well-known exchange-traded funds (ETFs) that provide a straightforward option. The Vanguard Russell 1000 Growth ETF invests primarily in a portfolio of large-cap U.S. growth stocks focused on technology. Alternatively, you can invest in the entire Nasdaq 100 index through the Invesco QQQ Trust ETF, which tracks the performance of the 100 largest non-financial stocks on Nasdaq.
Let’s take a closer look at these two U.S. growth stock ETFs and figure out how to choose between them.
VONG: A tech-focused portfolio of 391 stocks
The Vanguard Russell 1000 Growth ETF holds a total of 391 stocks, offering more diversity in terms of size than QQQ. However, this fund is weighted heavily towards technology, with 59.7% of its assets in tech stocks. Its top five holdings include: Nvidia (12.7%), Apple (10.8%), Microsoft (9.2%), Amazon (4.8%), and Broadcom (4.6%).
VONG has increased by about 24% over the last year, which is slightly behind the Nasdaq 100’s 28.4% gain during that same timeframe. Yet, it has a solid track record historically, with an average annual return of 26% over the past three years, 14.3% over five years, and 18.1% over the last decade.
The Vanguard Russell 1000 Growth ETF has an expense ratio of 0.06%. If you’re interested in building a tech-heavy stock portfolio without breaking the bank, this ETF could be a worthwhile option.
QQQ: Track the Nasdaq 100 Index at low cost
The Invesco QQQ Trust ETF offers a convenient and cost-effective way to own the entire Nasdaq 100 Index. With an expense ratio of 0.18%, as of February 27, its average annual return has been roughly 20.1% over the past year, 28.2% over three years, 14.8% over five years, and 20.4% over ten years.
QQQ holds around 102 stocks, with almost the same tech allocation as VONG—59.8% in technology as of February 27. Its top five holdings, as of early March, closely mirror those of VONG: Nvidia (8.7%), Apple (7.5%), Microsoft (5.9%), Amazon (4.5%), and Tesla (3.9%).
In terms of valuation, QQQ may be considered slightly undervalued compared to VONG, with a price-to-earnings ratio of 33.3x versus VONG’s 35.0x. If targeting major American tech stocks is your goal, QQQ might be the more efficient choice over the Vanguard ETF.
