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    Which is the better growth-focused ETF, Vanguard’s large-cap WONG or State Street’s small-cap SLYG?

    Smart WealthhabitsBy Smart WealthhabitsJune 7, 2026No Comments5 Mins Read
    Which is the better growth-focused ETF, Vanguard's large-cap WONG or State Street's small-cap SLYG?

    Vanguard Russell 1000 Growth ETF (NASDAQ:WONG) Provides exposure to large-cap giants at a lower cost, while State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) Offers a specific strategy focused on small-cap stocks.

    Growth investment strategies often vary significantly depending on the size of the underlying businesses. While Wong tracks the largest and most influential U.S. growth leaders, SLYG focuses on high-growth small-cap companies. This comparison helps clarify which market segment and risk profile may better suit your long-term financial goals.

    Snapshot (cost and size)

    metric

    SLYG

    wong

    Issuer

    SPDR

    vanguard

    expense ratio

    0.15%

    0.06%

    1-Year Returns (by June 3, 2026)

    25.60%

    22.26%

    dividend yield

    0.70%

    0.40%

    beta

    1.06

    1.16

    Om

    $4.7 billion

    $54.8 billion

    Beta measures price volatility relative to the S&P 500; Beta is calculated from five-year monthly returns. 1-year returns represent the total returns over the last 12 months. Dividend yield is the trailing 12-month distribution yield.

    The Vanguard fund is significantly more affordable, with an expense ratio of 0.06% compared to the 0.15% charged by the State Street fund. Over a decade, this 0.09 percentage point difference could result in a significant difference in total returns for long-term investors. Additionally, the State Street fund currently offers a higher payout, with a 0.70% yield compared to the 0.40% yield from the Vanguard fund.

    Performance and risk comparison

    metric

    SLYG

    wong

    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, with a heavy weighting in technology at 51%, followed by communication services at 13% and consumer cyclical stocks at 13%. Its largest positions include NVIDIA (NASDAQ:NVDA) At 13.23%, Apple (NASDAQ:AAPL) at 11.13%, and Microsoft (NASDAQ:MSFT) At 8.70%. The fund, launched in 2010, has a trailing-12-month dividend of $0.56 per share.

    In contrast, the State Street fund targets 344 holdings within the S&P SmallCap 600 Growth Index, which selects companies based on sales growth and earnings momentum. Its sector mix is ​​more balanced, consisting of technology 20%, industrials 19% and healthcare 14%. Its largest positions include sanmina (NASDAQ:SANM) At 1.79%, Viavi Solutions (NASDAQ:VIAV) at 1.44%, and Semtech (NASDAQ:SMTC) At 1.27%. Launched in 2000, it has a trailing-12-month dividend of $0.77 per share.

    For more guidance on ETF investing, check out the complete guide this link.

    What does this mean for investors

    Investing in growth stocks is a great way to generate strong returns for your portfolio. The Vanguard Russell 1000 Growth ETF (VONG) and the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) both offer an efficient way to gain exposure to growth companies, but use very different strategies to do so. Choosing which fund to invest in depends on the approach that best suits the individual investor.

    Wong targets large-cap growth stocks, and its holdings have had an average annual earnings growth rate of about 32% over the past five years. ETFs have had a huge impact on the technology sector since the artificial intelligence boom increased the sales of companies in this industry.

    However, if the region experiences a recession this substantial technical risk could impact the fund’s performance. Furthermore, technology stocks tend to have greater volatility, as shown by Wong’s higher beta and maximum drawdown.

    SLYG focuses on small-cap companies, using characteristics such as sales growth and momentum as inclusion criteria. Since small enterprises can often grow faster than larger companies, SLYG produced higher returns in a year. Negative aspects of the fund include a very large expense ratio and small AUM, which does not provide the level of liquidity that Wong can afford.

    SLYG is the ETF for investors who want exposure to small-cap stocks, especially if their portfolio already includes several holdings in WONG. Meanwhile, WONG is an ETF for investors who want well-known companies, and don’t mind the volatility inherent in the tech sector.

    Should you buy stocks in the SPDR Series Trust – State Street SPDR S&P 600TM Small Cap Growth ETF now?

    SPDR Series Trust – Before you buy stocks in the State Street SPDR S&P 600TM Small Cap Growth ETF, consider this:

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    consider when Netflix This list was created on December 17, 2004… If you invested $1,000 at the time of our recommendation, You will have $443,191!* or when NVIDIA This list was created on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $1,258,838!*

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    *Stock Advisor returns as of June 7, 2026.

    robert izquierdo Has positions in Apple, Microsoft and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Viavi Solutions. The Motley Fool has one Disclosure Policy.

    Which is the better growth-focused ETF, Vanguard’s large-cap WONG or State Street’s small-cap SLYG? Originally published by The Motley Fool

    ETF growthfocused largecap SLYG SmallCap State Streets Vanguards WONG
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