ISCG vs. VOOG: Small-Cap Growth vs. S&P 500 Growth -- Which ETF Is the Better Buy?

The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG) both target growth-oriented U.S. equities but focus on opposite ends of the market-capitalization spectrum.

VOOG leans on a small group of mega-cap technology leaders, while ISCG spreads its bets across more than 900 smaller companies. For investors trying to decide between the two, the choice really comes down to whether you want concentrated bets on today's biggest winners or broader diversification with more growth potential.

Snapshot (cost & size)

Metric	ISCG	VOOG
Issuer	iShares	Vanguard
Expense ratio	0.06%	0.07%
1-year return (as of July 23, 2026)	22.26%	18.77%
Dividend yield	0.57%	0.45%
Beta	1.22	1.20
AUM	$1.0 billion	$26.3 billion

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-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

Both funds are cheap to own. ISCG charges a 0.06% expense ratio, just a hair below VOOG's 0.07% -- a difference so small it's unlikely to matter for most investors. The funds’ dividend yields are fairly even as well, with VOOG yielding 0.45% compared to ISCG’s 0.57%.

Performance & risk comparison

Metric	ISCG	VOOG
Max drawdown (5 yr)	(41.47%)	(32.74%)
Growth of $1,000 over 5 years (total return)	$1,303	$1,816

VOOG has posted stronger five-year total returns, largely thanks to the powerful run in mega-cap tech stocks over that stretch. But the tables turned more recently -- ISCG has outperformed over the trailing 12 months, despite being the more volatile fund. That pattern is fairly typical: small-cap stocks have lagged during stretches when investors crowd into the largest, most liquid tech names, but can surge when investors rotate toward higher-risk, higher-reward opportunities.

What's inside

Launched in 2010, VOOG is heavily concentrated in technology, which makes up 52.4% of the portfolio, followed by communication services at 15.6% and consumer cyclical at 8.6%. Its top holdings include Nvidia (NASDAQ:NVDA) at 13.6%, Microsoft (NASDAQ:MSFT) at 7.8%, and Apple (NASDAQ:AAPL) at 6.0%. The fund holds 148 stocks.

The iShares Morningstar Small-Cap Growth ETF provides much broader exposure with 929 holdings. Its top sector weightings include industrials at 23.9%, technology at 22.5%, and healthcare at 17.9%. No single stock makes up more than 1% of its portfolio. Top positions include Sterling Infrastructure Inc (NASDAQ:STRL) at 0.8%, Okta Inc (NASDAQ:OKTA) at 0.7%, and Guardant Health (NASDAQ:GH) at 0.6%. ISCG launched in 2004.

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

Why this matters for investors

This comparison is a good reminder that "growth investing" isn't a one-size-fits-all strategy.

VOOG's concentration in technology has been a winning formula over the past five years, but that same concentration means the fund's fortunes are closely tied to how a small handful of companies perform. ISCG's diversification across hundreds of smaller firms results in much broader exposure -- and, historically, small caps tend to shine during periods when investors are willing to take on more risk in search of higher returns.

The right choice, of course, depends on an investor's risk tolerance and time horizon. Investors who want to stay anchored to the market's biggest, most established growth stories may prefer VOOG's straightforward, tech-heavy approach. Those looking to diversify beyond mega-cap tech -- and who can stomach more volatility along the way -- may find ISCG's broader small-cap exposure more appealing. For many long-term investors, holding a mix of both styles can offer a balance of stability and upside potential.

Andy Gould has positions in Apple, Nvidia, and Sterling Infrastructure and has the following options: long January 2027 $125 calls on Nvidia, short August 2026 $355 calls on Apple, and short January 2027 $125 puts on Nvidia. The Motley Fool has positions in and recommends Apple, Guardant Health, Microsoft, Nvidia, Okta, and Sterling Infrastructure. The Motley Fool has a disclosure policy.