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VUG is far larger and more liquid than VOOG, but carries slightly higher volatility and a deeper five-year drawdown.
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VOOG has delivered a slightly higher one-year return, while also offering greater diversification.
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Both ETFs charge low fees and track similar growth segments, but differ in top holdings and sector mix.
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The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the Vanguard Growth ETF (NYSEMKT:VUG) both target U.S. growth stocks, but they differ in size, sector tilt, and recent risk-return profiles.
Both funds aim to capture large-cap growth, but VOOG tracks the S&P 500 Growth Index, while VUG follows the broader CRSP U.S. Large Cap Growth Index. Here’s how these two powerful growth ETFs stack up on risk, costs, and diversification.
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Metric
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VOOG
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VUG
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Issuer
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Vanguard
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Vanguard
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Expense ratio
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0.07%
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0.04%
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1-yr return (as of Dec. 13, 2025)
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15.7%
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14.4%
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Dividend yield
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0.48%
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0.42%
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Beta (5Y monthly)
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1.10
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1.23
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AUM
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$21.7 billion
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$357.4 billion
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Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VUG is more affordable on fees with a lower expense ratio, while VOOG offers a marginally higher yield. The fee difference could matter to cost-conscious investors, but both funds remain highly competitive on price.
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Metric
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VOOG
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VUG
|
|
Max drawdown (5 y)
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-32.74%
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-35.61%
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Growth of $1,000 over 5 years
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$1,978
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$1,984
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VUG holds 160 stocks and has been in the market for nearly 22 years. Around 53% of its portfolio is allocated to technology, with 14% toward communication services, and 14% to consumer cyclical companies.
The fund’s top positions are Nvidia, Apple, and Microsoft. This index-driven approach aims for broad large-cap growth exposure, and VUG’s scale supports strong liquidity and trading flexibility.
VOOG, in contrast, holds 217 stocks with a smaller technology tilt at around 45%, followed by communication services at 16% and consumer cyclical at 12%.
Its largest holdings are similar to VUG’s, with Nvidia, Microsoft, and Apple rounding out the top three. While both funds are diversified, VOOG’s S&P 500 Growth focus results in slightly less concentrated tech exposure.
For more guidance on ETF investing, check out the full guide at this link.
VUG and VOOG are both growth funds targeting large-cap stocks, and they have achieved similar performance over the last five years. VUG is slightly more affordable on fees, while VOOG has an edge with a marginally higher dividend yield.
For many investors, diversification will make the biggest difference between these two funds. VOOG contains 57 more stocks than VUG, and it’s also less concentrated in tech. That can help reduce its volatility, as seen with its lower beta and milder max drawdown compared to VUG.
Also, while the top three holdings are the same across funds, their portfolio weightings differ slightly. Combined, VUG’s top three holdings make up 33.51% of the fund’s total assets, compared to 27.23% for VOOG. That’s another point toward VOOG’s diversification, as less weight toward the top stocks can help mitigate risk.
When it comes to liquidity, however, VUG’s much larger size gives it an edge. With an AUM of more than $357 billion compared to VOOG’s $22 billion, that scale can provide more flexibility for investors when buying and selling. AUM may not have a significant impact on long-term investors, but it’s still a factor to consider when these two ETFs share many similarities.
ETF: Exchange-traded fund; a pooled investment fund traded on stock exchanges like a stock.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages for investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000 over 5 years: The ending value of a $1,000 investment after five years, including price changes and dividends.
Liquidity: How easily an asset or fund can be bought or sold without affecting its price.
Sector tilt: When a fund has a higher allocation to certain industries or sectors than the broader market.
Large-cap: Companies with a large total market value, typically over $10 billion.
Index-driven approach: A strategy where a fund aims to replicate the performance of a specific market index.
Portfolio weighting: The percentage of a fund’s total assets allocated to a particular stock or sector.
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Katie Brockman has positions in Vanguard Admiral Funds – Vanguard S&P 500 Growth ETF and Vanguard Index Funds – Vanguard Growth ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Index Funds – Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
VUG vs. VOOG: Which of These Vanguard Growth ETFs Is Best for Investors? was originally published by The Motley Fool
