I have been investing in ETFs for ten years now (Exchange-Traded FundsOver the years, I've learned the importance of fees, diversification, taxation, and, above all, consistency. After 10 years of investing in ETFs, which ETF would I choose? Find out in this article.
⚠️ This article presents a personal opinion for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. All investments carry a risk of capital loss. Consult a professional if necessary.
ETF Vong: Introduction
I won't keep you in suspense any longer; if I had to choose just one ETF in my life, my choice would be… the ETF VONG* from Vanguard.
And yet, it's not a popular ETF on YouTube or social media.
Here's why I would choose it, and I'll also compare it to three popular alternatives: VOO*, QQQ* and VT*.
After 10 years of investing in ETFs: which ETF would I choose?
1. Understanding the VONG ETF
How does the VONG select its actions?
The VONG ETF does not choose its stocks randomly. It tracks an index called Russell 1000 Growth, which works in two stages:
- The size of US stocks: The index is part of the Russell 1000, which includes approximately 1,000 large and medium-sized American companies.
- A growth-oriented selection: The index evaluates stocks according to several growth criteria. The objective is to retain only stocks with a growth profile.
The VONG ETF simply tracks the companies included in this index.
2. Why I like the VONG ETF
Primarily for 4 reasons:
1) Focus on the American market
The United States is home to many of the world's most innovative and profitable companies, for example, in the technology, healthcare, and consumer goods sectors. As a result, these companies often benefit from a large domestic market and a strong international presence.
Historically, the US growth stock market has generated strong long-term growth. There's no guarantee this will continue, but this momentum is a cornerstone of my strategy.
The VONG ETF invests in large and mid-sized US companies with strong growth potential. That's what I'm looking for.
2) Investing in more than 300 companies
At the time of writing, the VONG ETF holds approximately 370 shares, according to Vanguard's website at the end of 2026. This exposure to several hundred companies helps to reduce dependence on a few companies.
In my opinion, 370 stocks is a good balance in terms of stock market diversification.
3) Multi-sector ETF
The VONG ETF is diversified across several economic sectors, allowing it to invest in companies with varied activities.
However, it should be noted that this diversification remains quite uneven. Indeed, in 2026, the technology sector alone represents approximately 68% of the portfolio, making the VONG highly exposed to the performance of technology companies.
This high exposure to technology should be taken into consideration with regard to the volatility of the ETF.
4) Very low TER fares
The VONG ETF only requires 0.06% in TER fees.
It's very cheap for the investor.
Note that the lower the TER fees, the more money the investor makes!
Summary of the 4 reasons
Caution: VONG remains focused on US growth stocks and may experience significant declines when this market segment faces difficulties. Capital loss is always possible.
Fifth reason: taxation in Switzerland
5) Prioritize growth over dividends (Swiss taxation)
I prioritize the growth of my wealth over dividends.
VONG corresponds to this strategy: favouring growth-oriented companies that offer few dividends.
In Switzerland, capital gains realized by a private investor are generally exempt from tax, while dividends are taxable as income.
The VONG displays:
- historically a low dividend yield (less than 1% per year)
- Over 10 years (September 2016 – September 2026), the annualized return is approximately 18%!
This is exactly what I'm looking for: strong stock market growth and low dividends. Because in Switzerland, dividends are generally taxed more heavily than growth.
3. VONG versus VOO, QQQ and VT
Let's analyze the VONG ETF in relation to popular stock market strategies. By comparing the VONG ETF to other ETFs:
- VOO (S&P 500)
- QQQ (Nasdaq-100)
- VT (Global ETF)
I also explain why I prefer the VONG ETF to these ETFs.
VONG vs VOO: American growth or broad American market?
The VOO tracks the S&P 500 and invests in approximately 500 large US companies. It offers more balanced exposure to different investment styles.
Why do I prefer the VONG?
- I prefer to focus on American companies with growth characteristics, rather than investing in all large American companies.
- Historically, the VONG ETF has delivered higher returns and distributed fewer dividends. This optimizes taxation in Switzerland.
In return, I must accept that VONG may underperform VOO during certain periods. It's also worth noting that the VOO ETF has TER charges of only 0.03%.
VONG vs QQQ: Growth or Nasdaq?
The QQQ tracks the Nasdaq-100, which comprises large non-financial companies listed on the Nasdaq. It has a high exposure to technology and other innovative companies.
I consider the Vong ETF and the QQQ ETF to be very similar, but with some important differences.
Why do I prefer the VONG?
- His selection is based on a growth index, not on the Nasdaq listing. This aligns better with my strategy.
- The VONG ETF invests in approximately 370 stocks, while the Nasdaq-100 invests in only about 100 stocks.
The VONG ETF is therefore much more diversified.
- Fees: the VONG ETF only requires 0.06%, while the QQQ ETF currently requires 0.18%.
However, it's worth noting that both ETFs have a similar portfolio for their top 10 holdings. This explains why their historical returns are very close (though the QQQ ETF has a slight historical advantage in this case).
VONG vs VT: US or global growth?
VT invests in thousands of companies worldwide, including developed and emerging markets. It's an excellent way to diversify a global portfolio in a single transaction.
VT's sectors are also more diversified than the VONG ETF.
Why do I prefer the VONG?
- I want to focus my investments on US growth companies, even if it means giving up some international diversification.
- Historically, the annualized return of the VONG ETF is much higher than that of the VT ETF
- Historically, the VONG ETF is preferable with regard to taxation in Switzerland (more growth and fewer dividends).
VONG vs VOO, QQQ and VT?
In my opinion, the VONG ETF offers a good balance between the Nasdaq-100 and the S&P500. That's what I'm looking for.
4. What average annual return did these ETFs achieve over 10 years?
Comparing the fees and composition of ETFs is important. But another question deserves our attention: How much have these ETFs generated on average each year?
To compare their performance, let's look at their annualized return over ten years, with dividends reinvested (March 31, 2016 – March 31, 2026).
| AND F | Annualized return over 10 years |
|---|---|
| QQQ | 18,98 % |
| VONG | 17,86 % |
| VOO | 14,12 % |
| VT | 11 % |
Sources: Official Vanguard and Invesco data, as of March 31, 2026. Figures are rounded. Performance figures are expressed in US dollars, before personal taxes. Past performance is not indicative of future results.
We conclude that the QQQ ETF and the VONG ETF achieved extraordinary performance during this analyzed period!
Why these differences in yield?
QQQ: a strong exposure to technology companies
The QQQ has benefited from the growth of large, innovative technology companies, particularly in software, semiconductors, and digital services. Its concentration can amplify performance when these companies dominate the market, but also lead to significant losses when the sector declines.
VONG: prioritize growth companies
The VONG selects US companies with growth characteristics. This focus has allowed it to benefit from the growth of many large, dynamic companies over the period. Its return is historically lower than that of the QQQ, because it invests in more stocks, but its return is historically higher than that of the VOO and VT over these ten years.
VOO: broader exposure to the American market
The VOO invests in large US companies across various profiles and sectors. It is a highly diversified ETF. It benefits from overall US growth but also includes less growth-oriented companies, which partly explains the performance difference compared to the VONG over the period considered.
VT: global diversification
The VT invests in the United States, but also in Europe, Japan, other developed markets, and emerging markets. It therefore has global diversification. This diversification limits its dependence on a single country, but international markets have experienced less growth than major US stocks during this period.
What does this comparison tell us?
Over the ten years studied, the QQQ achieved the highest annualized return, closely followed by the VONG ETF.
In my opinion, the VONG ETF is preferable, because even if the return is slightly lower than that of QQQ, the diversification is better and more reassuring.
However, this does not mean that QQQ or VONG will necessarily perform better in the future. Higher historical performance is not a guarantee of future performance.
This is precisely why I don't choose an ETF solely based on its past performance. I choose an ETF that aligns with my long-term investment strategy. But this carries a risk of losing money.
5. Which ETF is preferable in terms of taxation?
Another important point for me is taxation.
As already explained, in Switzerland, stock market gains are taxed less than dividends.
That's why I prefer to invest in an ETF that tends to achieve good stock market growth and pays few dividends.
This is also one of the reasons why I am more interested in the QQQ and the VONG ETF, rather than the VT or VOO ETFs.
Here is an estimate of the growth achieved and the average dividends distributed, for the period 2016-2025.
| Average annualized growth (estimate) | Average annual dividends distributed (estimate) | |
|---|---|---|
| ETF QQQ | 18,5% | 0,5% |
| ETF VONG | 17,5% | 0,5% |
| ETF VOO | 12,5% | 1,5% |
| ETF VT | 11% | 2% |
Historically, QQQ and VONG have distributed few dividends yet achieved good growth. This is ideal from a Swiss tax perspective.
Of course, this doesn't mean that QQQ or VONG will always outperform or be more tax-efficient than VT or VOO. It's simply historical data, not a guarantee.
6. Which ETF should I choose?
Here is a summary of each ETF's strategy:
VONG → US stocks with strong growth potential
VOO → Large part of the US stock market
QQQ → Large Nasdaq companies
VT → Global Stocks
Regarding taxation, here is the ranking of each ETF (based on past performance):
VONG → Very good
VOO → Good
QQQ → Very good
VT → Average
Based on my experience, if I had to choose just one ETF, my personal choice would be the...‘'ETF VONG. It combines exposure to numerous American companies, reasonable fees, and a clear focus on growth.
It combines exposure to numerous American companies, reasonable fees, and a clear focus on growth.
But I do not consider this choice to be universal:
- VOO is suitable for those seeking broader American exposure and a better distribution of sectors.
- The QQQ is for those who prefer the Nasdaq universe and wish to reduce the number of stocks to around 100.
- VT is for those who wish to diversify their investments globally, by investing in thousands of stocks.
NOTE: Investing in any written ETF carries a risk of losing money.
7. Simulation: How much could I have withdrawn from VONG over 15 years?
After analyzing the historical performance of the VONG ETF, I asked myself another question: Is it possible to withdraw a certain percentage from this ETF each month, while retaining a significant portion of my capital over the long term?
I imagined that I invested USD 100,000 in the VONG ETF on January 1, 2011, and that I withdrew 0.333 % of the value of my portfolio each month, until December 31, 2025.
Here are the estimated results as of December 31, 2025:
- Total withdrawals: 143,942 USD
- Capital remaining at the end of 2025: 538,695 USD
- Total cumulative value: USD 682,637 (withdrawals + remaining capital)
This simulation illustrates that historically, it is possible to withdraw 0.333 % per month from a VONG portfolio while increasing the capital over a long period.
Here is a graph of the capital value year after year:
Here is a graph with an analysis of annual withdrawals and capital at the end of the year, each year:
| Year | Annual withdrawals | Capital at the end of the year |
|---|---|---|
| 2011 | 3,972 USD | 98,286 USD |
| 2012 | 4,165 USD | 108,774 USD |
| 2013 | 4,998 USD | 139,233 USD |
| 2014 | 5,836 USD | 151,067 USD |
| 2015 | 6,104 USD | 153,224 USD |
| 2016 | 6,237 USD | 157,561 USD |
| 2017 | 7,142 USD | 196,868 USD |
| 2018 | 7,661 USD | USD 186,250 |
| 2019 | 8,659 USD | 243,468 USD |
| 2020 | 11,424 USD | 323,505 USD |
| 2021 | 14,508 USD | 396,596 USD |
| 2022 | 12,987 USD | 269,849 USD |
| 2023 | 12,887 USD | 369,888 USD |
| 2024 | 16,993 USD | USD 473,360 |
| 2025 | 20,370 USD | 538,695 USD |
| Total | 143,943 USD | 538,695 USD |
That's very positive!
In this example, Withdrawals and stock market growth tend to increase over the years. However, it should be noted that there have been a few years with a decline in returns.
Please note: these figures are based on an estimate of historical annual returns, not exact monthly data. Fees, taxes, and inflation are not taken into account. Past performance is not indicative of future results.
After 10 years of investing in ETFs: which ETF would I choose?
Conclusion: Which ETF should you choose for long-term investing?
After ten years of investing in ETFs, if I had to choose only one ETF today, I would choose the VONG.
I appreciate its exposure to US growth companies, its diversification across several hundred stocks, its past performance, and its reasonable fees.
This is a strategy that aligns with my objective: To grow my wealth over the long term. With good growth and few dividends.
This does not mean that the VONG is the best ETF for everyone.
For example, VOO offers even lower fees, QQQ has achieved an even higher historical return, and VT has global diversification.
The best ETF is first and foremost the one that matches your strategy, your investment horizon and your risk tolerance. The key is to understand what you are buying and to remain invested for the long term.
After 10 years of investing in ETFs: which ETF would I choose?
FAQ: After 10 years of investing in ETFs: which ETF would I choose?
Which is the best ETF for long-term investing?
The best ETF depends on your strategy, investment horizon, and risk tolerance. It's worth noting that VONG focuses on US growth companies, VOO on large US companies, QQQ on large non-financial companies listed on the Nasdaq, and VT on global markets.
Why choose the VONG ETF?
The VONG tracks the Russell 1000 Growth Index and invests in US companies with growth characteristics. It is distinguished by its annual fee of 0.06 % and its exposure to growth stocks. However, this strategy carries risks and can result in significant losses.
What is the difference between the VONG, VOO, QQQ and VT ETFs?
VONG targets US growth companies, while VOO tracks the S&P 500, QQQ tracks the Nasdaq-100, and VT invests in companies worldwide. Note that the choice depends on the desired geographic diversification and type of exposure.
Which ETF has achieved the best return over 10 years?
In the comparison presented in this article, QQQ shows the highest annualized return over the period studied, ahead of VONG, VOO, and VT. These historical performances do not guarantee future returns.
Which ETF offers the best tax advantages in Switzerland?
For a private investor domiciled in Switzerland, capital gains are generally tax-exempt, while dividends are taxable as income. ETFs that distribute fewer dividends may therefore offer tax advantages, but their treatment depends in particular on the investor's situation and the actual distributions.
What are the fees for the VONG ETF?
The VONG ETF has an annual expense ratio of 0.06 %. In reality, these fees are charged at the fund level and do not necessarily include all costs incurred by the investor, such as brokerage or currency exchange fees.
Is the VONG ETF sufficiently diversified?
In reality, the VONG ETF invests in several hundred American companies, allowing for diversification across numerous firms. However, it remains focused on US growth stocks and has significant exposure to the technology sector. Therefore, it does not replace comprehensive global diversification.
Is it better to invest in VONG or VT?
VONG prioritizes growth-oriented US companies, while VT spreads investments across multiple countries and markets, both developed and emerging. VONG may be suitable for a strategy focused on US growth, whereas VT is better suited to a search for global diversification.
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After 10 years of investing in ETFs: which ETF would I choose?
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