The iShares Russell 1000 Growth ETF (NYSEMKT: IWF) is one of the largest ETFs focusing on companies with above-average earnings growth. It has a total of 392 holdings, including top companies like Microsoft, Nvidia, and Apple. The ETF’s 1-year return is 7.6%, compared to the Vanguard Growth ETF (NYSEMKT: VUG), which boasts a 1-year return of 18.2% and has 166 holdings, primarily in large-cap stocks.
Both ETFs have similar top holdings, but differ in expense ratios: IWF charges 0.19% while VUG charges 0.04%. Over various time horizons, VUG has consistently outperformed IWF, especially in the 3-year period, delivering a return of 19.9% versus IWF’s 9.9%.
Investors looking for better returns and lower costs may prefer the Vanguard Growth ETF, which has shown superior performance over time with a focus on large-cap growth stocks.
