Key Points
Vanguard Growth ETF carries a lower expense ratio and a higher trailing-12-month dividend yield than Vanguard Small-Cap Growth ETF
Vanguard Small-Cap Growth ETF provides exposure to over 500 small companies, whereas Vanguard Growth ETF concentrates on 166 large-cap leaders
Vanguard Growth ETF has seen significantly higher growth of a $1,000 investment over the last five years
- 10 stocks we like better than Vanguard Growth ETF ›
The Vanguard Growth ETF (NYSEMKT:VUG) provides large-cap growth exposure at a lower cost, while the Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) offers broader diversification among smaller, potentially high-growth firms.
Both funds seek to capture growth-oriented equities but target vastly different market capitalizations. While VUG tracks the CRSP US Large Cap Growth Index, focusing on established giants, VBK follows the CRSP US Small Cap Growth Index, reaching for younger companies that may have more room for expansion but carry different risk profiles.
Snapshot (cost & size)
| Metric | VBK | VUG |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.05% | 0.03% |
| 1-yr return (as of June 1, 2026) | 35.50% | 31.70% |
| Dividend yield | 0.47% | 0.40% |
| Beta | 1.32 | 1.22 |
| AUM | $42.8 billion | $365.0 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
With an expense ratio of 0.03%, the Vanguard Growth ETF is slightly more affordable than its small-cap counterpart. It also provides a higher payout, offering a 1.80% trailing-12-month dividend yield compared to the 0.40% yield from the small-cap fund.
Performance & risk comparison
| Metric | VBK | VUG |
|---|---|---|
| Max drawdown (5 yr) | -38.40% | -35.60% |
| Growth of $1,000 over 5 years (total return) | $1,323 | $2,060 |
What's inside
Vanguard Growth ETF concentrates on large-cap leaders, with its largest positions including NVIDIA Corp. (NASDAQ:NVDA) at 13.33%, Apple Inc. (NASDAQ:AAPL) at 11.53%, and Microsoft Corp. (NASDAQ:MSFT) at 8.77%. VUG holds roughly 160 large-cap growth stocks and is heavily tilted toward the technology sector, which accounts for 54% of the portfolio. It was launched in 2004 and paid $1.59 per share over the trailing 12 months.
In contrast, Vanguard Small-Cap Growth ETF offers exposure to more than 550 small-cap growth stocks, and its top holdings include Bloom Energy Corp. (NYSE:BE) at 1.11%, Ciena Corp. (NYSE:CIEN) at 1.10%, and Comfort Systems USA Inc. (NYSE:FIX) at 0.95%. This fund, also launched in 2004, has a trailing-12-month dividend of $1.58 per share. Its sector allocation is more balanced between technology at 26% and industrials at 25%, reflecting the diversified nature of its small-cap index.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Growth investing may involve focusing on companies that already dominate the market or diversifying exposure across smaller firms with less established earnings trajectories. This distinction represents the practical difference between the Vanguard Growth ETF and the Vanguard Small-Cap Growth ETF.
The Vanguard Growth ETF (VUG) tracks large-cap growth stocks and is significantly influenced by mega-cap companies such as Nvidia, Apple, and Microsoft. This structure provides direct exposure to the primary growth leaders responsible for much of the market’s recent performance. However, it also increases reliance on the continued strength of a relatively small group of dominant companies. In contrast, the Vanguard Small-Cap Growth ETF (VBK) tracks small-cap growth stocks across a broader range of holdings. This diversification reduces single-stock concentration but shifts risk toward smaller businesses with less predictable earnings, heightened sensitivity to financing conditions, and increased exposure to fluctuations in investor risk appetite.
For investors, the more important distinction is what drives the growth exposure. VUG is more closely tied to mega-cap growth leadership, where results depend heavily on whether the market’s largest growth companies continue to command premium valuations. VBK spreads exposure across a much wider group of smaller companies, giving investors less reliance on a handful of dominant names but greater sensitivity to financing conditions and earnings uncertainty.
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Eric Trie has positions in Vanguard Growth ETF. The Motley Fool has positions in and recommends Vanguard Growth ETF and Vanguard Index Funds - Vanguard Small-Cap Growth ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
