The Vanguard Total Stock Market ETF has beaten the Vanguard Growth ETF over the past year, as investors grew wary of high valuations in U.
S. technology stocks.
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Analysis from The Globe and Mail, published on July 28, 2026, highlights the performance gap between the two low-cost funds.
Both ETFs charge an identical expense ratio of 0.03 percent, but they follow different investment strategies.
Fund Composition and Performance
The Vanguard Growth ETF focuses on 147 large-cap growth stocks, with technology making up 69.2 percent of the portfolio.
Its top holdings include Nvidia at 12.6 percent, Apple at 11.6 percent, Alphabet at 10.3 percent, Microsoft at 7.6 percent, and Amazon at 4.5 percent.
Since its launch in January 2004, the growth ETF has delivered an annualized return of 12.08 percent.
Over the past year, it gained 18.6 percent, but that lagged the broader market.
In contrast, the Vanguard Total Stock Market ETF holds 3,531 companies across all market caps and styles.
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Technology represents 41 percent of its portfolio, followed by industrials at 12.5 percent, consumer discretionary at 12.3 percent, financials at 10 percent, and healthcare at 9.1 percent.
Its top five holdings are the same as the growth fund's, but they account for only 24.3 percent of the total portfolio, compared to 46.6 percent in the growth fund.
The total market fund returned 23.2 percent over the past year, outperforming the growth ETF.
Since its inception in May 2001, it has achieved annualized returns of 9.5 percent, with three-year returns of 20.4 percent and five-year returns of 12.2 percent.
Valuation metrics show the total market ETF trading at a trailing price-to-earnings ratio of 25.98, about 21 percent lower than the growth ETF's 32.85.
Recent Vanguard research suggests U. S.
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value stocks could outperform growth stocks over the next decade, a factor that may have influenced investor sentiment.
