What is a mid-cap growth ETF and how does it differ from large-cap funds?

A mid-cap growth ETF invests in companies with medium market capitalisation that are expected to expand faster than the average. Unlike large-cap funds that hold established giants, these ETFs target firms in their expansion phase, potentially offering higher growth but with more volatility. IVOG and VOT both categorise as Vanguard Mid-Cap Growth ETFs, focusing on this specific segment to capture earnings potential beyond the saturated mega-cap space, though their portfolio compositions and costs vary significantly.

Why does index tracking methodology matter for ETF investors if details are unavailable?

Index tracking details reveal how a fund replicates its benchmark, such as full replication or sampling. Without this information, investors cannot assess tracking error risk or sector bias. For IVOG and VOT, specific index methodologies are not available, creating uncertainty about how each fund adheres to its mid-cap growth objective. This opacity makes direct comparison harder, as identical category labels do not guarantee identical underlying construction or risk profiles despite both being Vanguard products.

What is concentration risk and how is it measured in ETF holdings?

Concentration risk arises when a significant portion of an ETF’s assets sits in a few companies. It is often measured by the weight of the largest holdings. VOT’s top position is 2.23%, while IVOG’s largest is 1.93%. Although both are modest compared to funds holding ten percent in one stock, VOT has slightly higher top-heaviness. Investors monitoring concentration should consider the top ten cumulative weights, not just the first holding.

How do the expense ratios of IVOG and VOT compare, and what does this mean for long-term returns?

VOT charges a 0.05% expense ratio, half of IVOG’s 0.10%. A 0.05% difference appears negligible but compounds significantly over decades due to the cost of investing. On a £10,000 investment, VOT costs £5 annually versus £10 for IVOG before growth. Lower fees preserve more capital for compounding, making VOT more cost-efficient structurally, provided the underlying holdings and tracking align with the investor’s goals.

Are IVOG and VOT suitable for building diversified income portfolios?

Both ETFs yield less than 1%, which is inadequate for income-focused strategies. VOT offers 0.61% and IVOG 0.56%, reflecting growth-oriented firms prioritising reinvestment over payouts. While VOT’s marginally higher yield provides slightly better cash flow, neither fund is designed for high distribution income. Dividend increases from these growth firms are unpredictable. Investors relying on ETFs for income typically combine low-yield growth holdings with dedicated dividend or bond strategies.

Should I choose IVOG or VOT based on portfolio size, and how does AUM impact trading?

Asset Under Management (AUM) impacts liquidity and tracking stability more than investment performance. VOT holds £19.6 billion, offering superior liquidity and bid-ask spread efficiency compared to IVOG’s £1.6 billion. Larger AUM also supports tighter tracking error and lower operational costs. IVOG is considered more concentrated and costlier. Investors with very small amounts typically find IVOG acceptable, but VOT is the more robust choice for large allocations due to economies of scale.

What does 'top 10 holdings do not overlap' mean for my portfolio?

The top 10 holdings of IVOG and VOT are completely distinct, meaning these two funds offer different market exposures despite sharing the same category. IVOG includes companies like Twilio and Okta, while VOT includes Vertiv and Coeur Mining. This lack of overlap suggests that IVOG and VOT target different segments of the mid-cap growth universe. Holding both creates a broader composite portfolio, but also means tracking different sets of risks and return drivers.

How do sector allocations differ between IVOG and VOT?

Specific sector weightings are not available for either fund. Consequently, comparing sector tilts using the provided fund data is impossible. While both invest in mid-cap growth equities, the difference in top holdings, such as VOT’s technology and infrastructure focus compared to IVOG’s healthcare and industrial stocks, implies different sector exposures. Investors must rely on the funds' prospectuses or other official Vanguard materials to understand sector diversification and avoid unintended concentration in specific industries.

Do the top holdings of VOT suggest higher concentration than IVOG?

VOT’s top holding is 2.23% while IVOG’s is 1.93%. The second-largest for VOT is 2.20% compared to IVOG’s 1.68%. Top holdings for VOT are generally heavier. However, both remain broadly diversified with small single-stock weights. Since top ten overlap is none, the funds are effectively different baskets of stocks. IVOG is more modestly held, while VOT has a slightly greater top weight in some positions. The difference in concentration is minor in percentage points.

Does the age of an ETF affect its risk profile?

Inception date can influence operational history and data transparency. VOT started in August 2006, whereas IVOG was launched in September 2010. While VOT has a longer operating track record, both are managed by Vanguard with established methodologies. Age alone does not determine risk, but a longer history provides more historical performance data for comparison. Investors should focus on the structural differences like AUM and costs rather than treating age as a proxy for safety or return.

What are the specific costs for comparing IVOG and VOT holdings?

There are no transaction fees provided for the underlying holdings of either IVOG or VOT. The comparison page lists holdings by ticker and percentage weight only. Investors cannot assess trading cost implications through fund comparison metrics alone, as bid-ask spreads and liquidity differ by individual stock. IVOG includes names like UTHR and VOT includes HWM. Without specific transaction cost data, it is not possible to estimate the real-world trading impact for investors buying these ETFs.

Is the lower expense ratio of VOT a guarantee of better performance?

A lower expense ratio improves potential net returns by reducing cost drag, assuming tracking errors and gross returns are identical. VOT is cheaper at 0.05% versus IVOG’s 0.10%. However, the difference in top 10 holdings shows these funds own different stocks. Therefore, gross returns are likely to differ. A cheaper ETF does not automatically outperform if its chosen stocks perform worse than the alternatives. Fees are one factor; stock selection is another.

IVOG vs VOT

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IVOG and VOT, both Vanguard Mid-Cap Growth ETFs, on fees, holdings, dividends and tracking approach. IVOG costs 0.10%, holds $1.6 billion with a 0.56% yield, while VOT costs 0.05%, holds $19.6 billion with a 0.61% yield. Their top ten holdings do not overlap. Index tracking details are not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IVOG

Metric

VOT

0.10%

Expense Ratio

0.05%

0.56%

Dividend Yield

0.61%

$1.63B

Net Assets

$19.59B

250

Holdings

125

Sep 9, 2010

Inception Date

Aug 17, 2006

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Index Tracked

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Mid-Cap Growth

Fund Category

Mid-Cap Growth

VOT costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

IVOG

Pros

The ETF offers a low expense ratio of 0.10%, which is competitive for active or index-based mid-cap strategies.
It holds a relatively modest top position weighting, with the largest constituent at 1.93%, promoting broad diversification.
With $1.6 billion in net assets, the fund demonstrates sufficient size to maintain operational stability and liquidity.

Considerations

The dividend yield of 0.56% is lower than the peer fund, potentially limiting income generation for investors.
Index tracking methodology details are not available, creating uncertainty regarding the precise benchmark replication strategy.
The fund is significantly smaller than the comparable Vanguard ETF, with $1.6 billion versus $19.6 billion in assets.

VOT

Pros

The fund features an exceptionally low expense ratio of 0.05%, reducing long-term investment costs for shareholders.
With $19.6 billion in net assets, the ETF benefits from high liquidity and economies of scale.
It offers a slightly higher dividend yield of 0.61% compared to the alternative fund, enhancing income potential.

Considerations

The largest holding accounts for 2.23% of the portfolio, indicating a marginally higher concentration risk.
Details on the index tracked are not available, obscuring the underlying replication methodology and benchmark alignment.
The top ten holdings share no overlap with the alternative fund, suggesting distinct portfolio compositions despite similar categories.

About IVOG and VOT

IVOG (IVOG)

The Vanguard Mid-Cap Growth ETF aims to track the performance of US mid-cap stocks with growth characteristics. With an expense ratio of 0.10%, it offers investors access to approximately 250 holdings within this specific market segment. Since its inception in September 2010, the fund has managed net assets of around USD 1.63 billion. It provides a cost-effective way to potentially participate in the growth of established mid-sized US companies that exhibit higher growth prospects compared to larger counterparts. The fund currently offers a dividend yield of 0.56%. As with any investment, capital values can fluctuate, and returns are not guaranteed. This ETF suits investors seeking diversified exposure to mid-cap growth equities as part of a broader portfolio, though individual suitability depends on personal financial circumstances, risk tolerance, and investment objectives.

VOT (VOT)

The Vanguard Mid-Cap Growth ETF (VOT) offers investors access to a diversified portfolio of US mid-cap companies, specifically those with growth characteristics. This fund is managed passively, aiming to track a mid-cap growth benchmark. With a very low expense ratio of 0.05%, it stands out as a cost-efficient way to include mid-cap growth stocks in a portfolio. The fund holds approximately 125 stocks, providing a balanced exposure to companies that may have higher growth potential than large-cap firms but are typically more established than small-cap ones. Launched in August 2006, it manages substantial net assets of USD 19.59 billion. While it pays a dividend yield of 0.61%, investors should note that the primary objective is capital appreciation through stock growth. As with any equity investment, values can fluctuate, and returns are not guaranteed.

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IVOG vs VOT

Fund Snapshot