Vanguard Russell 1000 Growth vs. Invesco SmallCap 600 Revenue: Which Is Better for a Diversified Portfolio?

Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) provides low-cost exposure to large-cap U.S. leaders, while Invesco S&P SmallCap 600 Revenue ETF (NYSEMKT:RZG) offers a niche, revenue-weighted strategy for small-cap growth companies.

These two funds target different ends of the market capitalization spectrum. The Vanguard fund tracks established American corporations, whereas the Invesco fund filters the small-cap universe based on revenue and growth characteristics, creating distinct risk and volatility profiles for long-term investors looking to diversify their equity holdings.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Vanguard fund is significantly more affordable, with its 0.06% expense ratio undercutting the 0.35% charged by the Invesco fund. Both ETFs currently offer a 0.5% yield, making the primary choice between them a matter of market-cap preference.

Performance & risk comparison

What's inside

Vanguard Russell 1000 Growth ETF allocates capital to equities within the Russell 1000 Growth Index, serving as a standard measure for large-capitalization U.S. growth stocks. The portfolio is heavily weighted toward technology (68%) and communication services (17%), focusing on established American corporations with capital appreciation potential. Its largest positions include Nvidia at 15.5%, Alphabet at 10.72%, and Apple at 7.5%. The fund was launched in 2010. Vanguard Russell 1000 Growth ETF has paid $0.58 per share over the trailing 12 months, which on its recent ~$124.84 share price works out to a 0.5% yield.

Invesco S&P SmallCap 600 Revenue ETF invests at least 90% of its assets in a revenue-weighted subset of the S&P SmallCap 600 Index. It focuses on small-cap companies exhibiting strong growth characteristics, resulting in a sector mix led by healthcare (23%), industrials (17%), and financial services (17%). The fund contains 127 holdings, and its top positions include ACM Research at 2.1%, Protagonist Therapeutics at 2.01%, and Dave at 2.01%. It was launched in 2006. Invesco S&P SmallCap 600 Revenue ETF has paid $0.30 per share over the trailing 12 months, which on its recent ~$65.17 share price works out to a 0.5% yield.