So, here we are. Two little boxes of hope, really. The Vanguard S&P 500 Growth ETF (VOOG +0.40%) and the iShares Russell 2000 Growth ETF (IWO 1.96%). Both chasing growth, but from different sides of the tracks. One prefers the established names, the solid citizens. The other, the scrappy upstarts. It’s a tale as old as money itself.
VOOG, you see, hangs out with the big boys – the S&P 500. Reliable, predictable, generally won’t keep you up at night. IWO, though, it dives into the Russell 2000, where the companies are smaller, faster, and considerably more likely to vanish into thin air. So it goes.
Let’s look at the numbers. Just numbers. They pretend to mean something.
| Metric | VOOG | IWO |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense ratio | 0.07% | 0.24% |
| 1-yr return (as of Jan. 25, 2026) | 16.16% | 15.31% |
| Dividend yield | 0.49% | 0.56% |
| Beta (5Y monthly) | 1.08 | 1.45 |
| AUM | $22 billion | $13 billion |
The fees are…well, they’re a fact. VOOG is cheaper. A small difference, perhaps, but these things add up. Like grains of sand, slowly burying everything you’ve worked for. The yields are similar enough. Income isn’t the main game here; it’s the illusion of growth that keeps us all going.
| Metric | VOOG | IWO |
|---|---|---|
| Max drawdown (5 y) | -32.74% | -42.02% |
| Growth of $1,000 over 5 years | $1,880 | $1,097 |
The drawdown. That’s the part they don’t advertise. The inevitable plunge. IWO plunges further. It’s just physics, really. Smaller things are more easily broken. Over five years, VOOG did better. The big companies, they tend to survive. Mostly.
Inside IWO, you’ll find a lot of healthcare and tech. Bloom Energy, Credo Technology Group, Kratos Defense. Companies trying to solve problems, or maybe just create new ones. A broad mix, spread thin. A hopeful scattering. VOOG, on the other hand, is dominated by the usual suspects: Nvidia, Microsoft, Apple. The giants. They own everything. They always do.
For more guidance, there’s a full guide somewhere. I’ve forgotten the link. It doesn’t really matter. The information is all the same. Just repackaged hope.
What does it all mean? VOOG is the sensible choice. The steady hand. The comfortable chair. It won’t make you rich overnight, but it probably won’t ruin you either. IWO is a gamble. A little more exciting, perhaps, but with a higher probability of ending up with nothing. It’s a matter of temperament, really. And luck. Mostly luck.
Growth ETFs, they come in all shapes and sizes. Different flavors of the same basic delusion. VOOG is for those who believe in the power of established institutions. IWO is for those who still believe in the American Dream. So it goes.
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2026-01-26 00:02