VUG vs. VOOG: How These Growth-Focused Vanguard ETFs Compare for Investors
Key Points
VUG offers a lower expense ratio and much greater assets under management than VOOG.
VOOG has delivered a higher 1-year total return and experienced a smaller five-year drawdown.
VUG tilts more heavily toward technology and has fewer holdings than VOOG.
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The biggest differences between the Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the Vanguard Growth ETF (NYSEMKT:VUG) are cost, sector tilt, and performance in volatile markets.
Both funds target U.S. growth stocks. However, while VOOG tracks the S&P 500 Growth Index, VUG follows the broader CRSP U.S. Large Cap Growth Index. This matchup compares whether a narrower S&P 500 approach or a slightly broader large-cap growth basket may be more appealing for investors.
Snapshot (cost & size)
| Metric | VOOG | VUG |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.07% | 0.04% |
| 1-yr return (as of Dec. 9, 2025) | 19.28% | 16.47% |
| Dividend yield | 0.48% | 0.42% |
| AUM | $21.7 billion | $353.0 billion |
| Beta (5Y monthly) | 1.10 | 1.23 |
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 in terms of fees, charging an expense ratio of 0.04% versus VOOG's 0.07% -- which may appeal to cost-conscious investors. However, it also delivers a slightly lower dividend yield with lower one-year total returns.
Performance & risk comparison
| Metric | VOOG | VUG |
|---|---|---|
| Max drawdown (5 y) | -32.74% | -35.61% |
| Growth of $1,000 over 5 years | $1,979 | $1,984 |
VOOG has weathered market downturns somewhat better, with a smaller five-year max drawdown, while both funds have delivered similar five-year growth on a $1,000 investment. VUG’s higher beta suggests it may be more volatile than VOOG in turbulent markets.
What's inside
VUG primarily invests in large U.S. growth companies, with technology stocks making up over 53% of the portfolio. Communication services and consumer cyclical round out the top three sectors. The fund holds 160 stocks, and its largest positions are Nvidia, Apple, and Microsoft. With a fund age of nearly 22 years, VUG offers long-term exposure to the nation’s most prominent growth names.
VOOG, in contrast, spreads its assets across 217 holdings and has a slightly less concentrated sector allocation: technology at 44%, communication services at 15%, and consumer cyclical at 12%. The top three holdings mirror those of VUG, but combined, they make up a smaller portion of the portfolio.
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What this means for investors
VUG and VOOG are both growth-oriented ETFs, but they take slightly different approaches in their portfolio composition.
Both ETFs contain large-cap stocks from companies with growth characteristics. VOOG only includes high-growth stocks from the S&P 500, giving it a slightly more targeting approach compared to VUG.
That said, VUG's heavier tilt toward the tech sector -- combined with its smaller portfolio of stocks -- provides less diversification. More than half of the fund is dedicated to technology stocks, compared to 44% for VOOG. That can increase risk, especially during periods of volatility, but it can also lead to more lucrative returns when the tech industry is thriving.
The two funds have earned similar five-year total returns, with VOOG slightly outpacing VOOG in one-year earnings. VUG's higher beta and steeper max drawdown, however, suggest that it's experienced more significant price fluctuations over the last five years -- which can be a sticking point for investors concerned about short-term volatility.
With similar expense ratios and dividend yields, choosing between the two funds will likely come down to your risk tolerance, diversification preferences, and how much tech exposure you're looking to achieve.
Glossary
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Assets under management (AUM): The total market value of assets a fund or investment firm manages on behalf of investors.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Index: A statistical measure of the performance of a group of securities, used as a benchmark for funds.
Sector tilt: When a fund allocates more assets to certain industries or sectors than others, affecting risk and return.
Dividend yield: The annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of a fund’s volatility compared to the overall market; higher beta means higher volatility.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth stock: A company’s stock expected to grow earnings or revenue faster than the market average.
Holdings: The individual securities or assets owned within a fund or portfolio.
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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.
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