An integrative approach involving vapor–liquid–solid (VLS) growth followed by selective oxidation steps to the construction of core–shell nanowires and higher-level ordered systems with scalable configurations is used. We contrast this strategy that uses reaction-diffusion-segregation mechanisms to produce coherently strained structures with highly configurable geometry and abrupt interfaces with growth-based processes which lead to low strained systems with non uniform composition, three-dimensional morphology, and broad core–shell interface. We specially focus on SiGe small core–shell nanowires and demonstrate that they can have up to 70% Ge-rich shell and 2% homogeneous strain with core diameter as small as 14 nm. Key elements of the building process associated with this approach are identified with regard to existing theoretical models. Moreover, starting from results of ab initio calculations, we discuss the electronic structure of these novel nanostructures as well as their wide potential for advanced device applications. Similar core-shell structures can be formed around small nanocrystals for photonic applications.