VIG vs VUG
Vanguard Dividend Appreciation ETF vs Vanguard Growth ETF
Quick Verdict
VUG has a lower expense ratio. VIG delivered stronger 1-year returns. VIG offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | VIG | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $110.2B | $223.2B | |
| Dividend Yield | 1.79% | 0.47% | |
| Holdings | 335 | 155 | |
| YTD Return | +12.33% | +10.30% | |
| 1Y Return | +20.84% | +17.28% | |
| 3Y Return (annualized) | +16.69% | +24.74% | |
| 5Y Return (annualized) | +10.89% | +13.10% | |
| Volatility (annualized) | 13.3% | 16.5% | |
| Max Drawdown | -48.2% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 21, 2006 | Jan 26, 2004 |
VIG vs VUG Performance
Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VIG returned +20.84% while VUG returned +17.28%. Year to date, VIG is up 12.33% versus a gain of 10.30% for VUG.
Over three years, VIG compounded at +16.69% per year against +24.74% for VUG; over five years the annualized figures are +10.89% and +13.10% respectively. Across the full 20-year window we track, VUG has the edge at +11.29% annualized vs +8.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 13.3% for VIG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -48.2% for VIG and -51.4% for VUG. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIG charges 0.04% per year while VUG charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIG currently yields 1.79% against 0.47% for VUG.
Holdings Overlap
VIG and VUG share 32 holdings out of 445 unique holdings combined, representing a 26.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VIG or VUG?
VIG has an expense ratio of 0.04% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VIG or VUG?
Over the past year VIG returned +20.84% vs +17.28% for VUG, so VIG leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.70% vs +11.29% for VUG. Past performance does not guarantee future results.
Which is riskier, VIG or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs VUG -51.4%.
Should I hold both VIG and VUG?
VIG and VUG have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIG and VUG?
VIG and VUG share 32 common holdings with a 26.3% weight overlap. Combined, they hold 445 unique securities.
Which pays a higher dividend, VIG or VUG?
VIG yields 1.79% while VUG yields 0.47%, so VIG currently pays the higher dividend yield.
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