VUG outperforms IWF in returns and has lower expense ratio, making it a more attractive choice.

From Nasdaq: 2025-06-23 09:22:00

The iShares Russell 1000 Growth ETF (NYSEMKT: IWF) and the Vanguard Growth ETF (NYSEMKT: VUG) both focus on companies with above-average earnings growth rates, but VUG has outperformed IWF in returns. VUG’s lower expense ratio of 0.04% compared to IWF’s 0.19% makes it a more cost-effective option for investors seeking growth stocks.

VUG’s top holdings, including Microsoft, Nvidia, Apple, Amazon, and Meta Platforms, closely mirror IWF’s top holdings. Despite the slight differences in allocation, both ETFs provide exposure to similar growth stocks. With VUG’s history of higher returns and lower costs, it emerges as a more attractive choice for investors looking to capitalize on growth opportunities.

Investors looking to allocate $1,000 right now may want to consider the Vanguard Growth ETF over the iShares Russell 1000 Growth ETF. The Motley Fool’s analyst team has identified VUG as a strong option for potential growth, given its track record of delivering superior returns compared to IWF. Joining the Stock Advisor program can provide access to the top 10 stock picks for potential high returns.



Read more at Nasdaq: IWF Is a Great Choice for Most, But I Like VUG ETF Better