VTWO vs. VTWG

Last updated Aug 4, 2026

VTWO (Vanguard Russell 2000 ETF) and VTWG (Vanguard Russell 2000 Growth ETF) are both exchange-traded funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while VTWG is a Small Cap Growth Equities fund tracking the Russell 2000 Growth Index. Both are passively managed. Over the past 10 years, VTWO returned 10.77%/yr vs 10.77%/yr for VTWG. Their 0.96 correlation means they have historically moved very closely together. Both charge a 0.06% expense ratio.

Performance

VTWO vs. VTWG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 ETF (VTWO) and Vanguard Russell 2000 Growth ETF (VTWG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTWO achieves a 20.92% return, which is significantly higher than VTWG's 17.46% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: VTWO at 10.77% and VTWG at 10.77%.

VTWO

• 1D: 1.69%
• 1M: -0.42%
• 6M: 13.61%
• YTD: 20.92%
• 1Y: 39.49%
• 3Y*: 16.67%
• 5Y*: 7.83%
• 10Y*: 10.77%
• ALL TIME*: 11.43%

VTWG

• 1D: 2.10%
• 1M: -2.12%
• 6M: 11.88%
• YTD: 17.46%
• 1Y: 33.76%
• 3Y*: 16.31%
• 5Y*: 5.73%
• 10Y*: 10.77%
• ALL TIME*: 11.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VTWG Vanguard Russell 2000 Growth ETF	$5.94M	$5.47M	$5.78M
VTWO Vanguard Russell 2000 ETF	$175.64M	$193.82M	$227.97M

VTWO vs. VTWG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWO Vanguard Russell 2000 ETF	20.92%	12.90%	11.55%	17.08%	-20.49%	14.79%	20.22%	25.81%	-11.15%	14.69%
VTWG Vanguard Russell 2000 Growth ETF	17.46%	13.07%	15.15%	18.90%	-26.49%	2.84%	34.72%	28.75%	-9.45%	22.27%

Correlation

The correlation between VTWO and VTWG is 0.97 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.97
Correlation (3Y) Balances recent behavior with more history.	0.98
Correlation (5Y) Shows whether the relationship held over a longer period.	0.98
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.96

The correlation between VTWO and VTWG has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

VTWO vs. VTWG - Sectors Allocation Comparison

Sectors	VTWO	VTWG
Healthcare	20.2%	28.8%
Financial Services	17.6%	8.1%
Technology	14.8%	22.1%
Industrials	14.1%	15.9%
Consumer Cyclical	9.2%	8.1%
Real Estate	6.7%	2.5%
Energy	5.4%	4.8%
Basic Materials	4.4%	5.0%
Utilities	2.7%	0.6%
Consumer Defensive	2.6%	2.3%
Communication Services	2.2%	1.9%

Return for Risk

VTWO vs. VTWG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTWO

VTWO Risk / Return Rank: 85
VTWO Sharpe Ratio Rank: 86
VTWO Sortino Ratio Rank: 85
VTWO Omega Ratio Rank: 80
VTWO Calmar Ratio Rank: 88
VTWO Martin Ratio Rank: 87

VTWG

VTWG Risk / Return Rank: 61
VTWG Sharpe Ratio Rank: 63
VTWG Sortino Ratio Rank: 62
VTWG Omega Ratio Rank: 55
VTWG Calmar Ratio Rank: 63
VTWG Martin Ratio Rank: 63

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTWO vs. VTWG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and Vanguard Russell 2000 Growth ETF (VTWG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VTWO	VTWG	Difference
Sharpe ratio: Return per unit of total volatility	2.06	1.50	+0.56
Sortino ratio: Return per unit of downside risk	2.87	2.14	+0.74
Omega ratio: Gain probability vs. loss probability	1.34	1.25	+0.09
Calmar ratio: Return relative to maximum drawdown	3.61	2.28	+1.33
Martin ratio: Return relative to average drawdown	12.83	7.86	+4.96

VTWO vs. VTWG - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.06, which is higher than the VTWG Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of VTWO and VTWG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTWO vs. VTWG - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, roughly equal to the maximum VTWG drawdown of -42.07%. Use the drawdown chart below to compare losses from any high point for VTWO and VTWG.

Drawdown Indicators

	VTWO	VTWG	Difference
Max Drawdown Largest peak-to-trough decline	-41.19%	-42.07%	+0.88%
Max Drawdown (1Y) Largest decline over 1 year	-10.99%	-14.88%	+3.89%
Max Drawdown (3Y) Largest decline over 3 years	-27.57%	-28.58%	+1.01%
Max Drawdown (5Y) Largest decline over 5 years	-31.88%	-40.49%	+8.61%
Max Drawdown (10Y) Largest decline over 10 years	-41.19%	-42.07%	+0.88%
Current Drawdown Current decline from peak	-1.40%	-3.93%	+2.53%
Average Drawdown Average peak-to-trough decline	-8.32%	-10.45%	+2.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	4.30%	-1.21%

Volatility

VTWO vs. VTWG - Volatility Comparison

The current volatility for Vanguard Russell 2000 ETF (VTWO) is 4.16%, while Vanguard Russell 2000 Growth ETF (VTWG) has a volatility of 6.26%. This indicates that VTWO experiences smaller price fluctuations and is considered to be less risky than VTWG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTWO	VTWG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.16%	6.26%	-2.10%
Volatility (6M) Calculated over the trailing 6-month period	14.11%	17.30%	-3.19%
Volatility (1Y) Calculated over the trailing 1-year period	19.30%	22.62%	-3.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.45%	24.67%	-2.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.07%	24.28%	-1.21%

VTWO vs. VTWG - Expense Ratio Comparison

Both VTWO and VTWG have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTWO vs. VTWG - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.09%, more than VTWG's 0.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTWG Vanguard Russell 2000 Growth ETF	0.60%	0.64%	0.55%	0.79%	0.71%	0.54%	0.48%	0.72%	0.72%	0.64%	0.96%	0.72%
VTWO Vanguard Russell 2000 ETF	1.09%	1.25%	1.21%	1.45%	1.48%	1.13%	0.92%	1.36%	1.41%	1.18%	1.27%	1.23%

Frequently Asked Questions

Can I hold both VTWO and VTWG in my portfolio?

With a correlation of 0.97, VTWO and VTWG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VTWO or VTWG?

VTWG has higher volatility (6.26%) compared to VTWO (4.16%). In terms of maximum drawdown, VTWO dropped -41.19% vs VTWG's -42.07%.

Which ETF is better, VTWO or VTWG?

On 10-year performance, VTWG leads with 10.77% vs 10.77% for VTWO. Both ETFs have the same 0.06% expense ratio. On volatility, VTWO has been the lower-risk option at 4.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTWO or VTWG?

Over the 10-year period, VTWG has performed better with a 10.77% return vs 10.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWO or VTWG?

VTWO and VTWG have the same expense ratio: 0.06% per year.

Which ETF pays a higher dividend yield, VTWO or VTWG?

VTWO has the higher dividend yield at 1.09%, compared with 0.60% for VTWG.

What is the main difference between VTWO and VTWG?

VTWO is categorized as Small Cap Blend Equities, while VTWG is Small Cap Growth Equities. VTWO tracks Russell 2000 Index, while VTWG tracks Russell 2000 Growth Index.

Which has better risk-adjusted returns?

VTWO currently has the higher Sharpe Ratio (2.06 vs 1.50), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.