Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 Index Fund ETF Shares (VONE) is a passively managed exchange traded fund launched on September 22, 2010.
The fund is sponsored by Vanguard. It has amassed assets over $7.90 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.04%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 35.4% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 6.79% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has added about 8% so far this year and was up about 21.61% in the last one year (as of 06/26/2026). In the past 52-week period, it has traded between $279.48 and $343.09.
The ETF has a beta of 1.01 and standard deviation of 14.74% for the trailing three-year period, making it a medium risk choice in the space. With about 1009 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 Index Fund ETF Shares holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VONE is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $824.15 billion in assets, Vanguard 500 Index Fund ETF Shares has $965.95 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Russell 1000 Index Fund ETF Shares (VONE): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).