Which Is the Better Growth ETF, the Vanguard Mega Cap Growth ETF or iShares Russell 2000 ETF?

Robert Izquierdo, The Motley Fool

Fri, May 8, 2026 astatine 8:50 AM CDT 4 min read

Comparing the Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) and iShares Russell 2000 ETF (NYSEMKT:IWM) involves weighing the high-octane maturation of tech giants against the diverse, much volatile scenery of small-cap companies.

Investors often take betwixt these funds to set their market-cap exposure. The Vanguard money captures the apical tier of maturation leaders, portion the iShares money tracks the broader small-cap market. This examination looks astatine however their costs, holdings, and hazard profiles disagree for semipermanent holders.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Vanguard money is much affordable, costing conscionable $0.50 annually for each $1,000 invested compared to $1.90 for its counterpart. While some wage dividends, the Vanguard money presently offers a little payout with a trailing-12-month output of 0.34% compared to 0.90% for the iShares fund.

Performance & hazard examination

What's wrong

The iShares Russell 2000 ETF provides vulnerability to 1,924 small-cap stocks. Its portfolio is led by healthcare astatine 18%, industrials astatine 17%, and fiscal services astatine 16%. Its largest positions see Bloom Energy (NYSE:BE) astatine 1.93%, Credo Technology (NASDAQ:CRDO) astatine 0.94%, and Sterling Infrastructure (NASDAQ:STRL) astatine 0.72%. This money was launched successful 2000, features nary important quirks, and has a trailing-12-month dividend of $2.54 per share.

In contrast, the Vanguard Mega Cap Growth ETF is much concentrated, holding 59 stocks. It tilts heavy toward exertion astatine 68%, followed by user discretionay astatine 16% and industrials astatine 6%. Top holdings see NVIDIA (NASDAQ:NVDA) astatine 13.73%, Apple (NASDAQ:AAPL) astatine 12.58%, and Microsoft (NASDAQ:MSFT) astatine 9.00%. Launched successful 2007, it has nary large quirks and a trailing-12-month dividend of $1.18 per share.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.