VIG vs VUG
Vanguard Dividend Appreciation ETF vs Vanguard Morningstar Growth ETF
Which is better, VIG or VUG?
Large Cap Blend against Large Cap Growth.
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. VIG is less concentrated, with 33.4% of the fund in its ten largest positions against 63.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VIG | VUG |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $111.4B | $219.5B |
| Dividend Yield | 1.48% | 0.38% |
| Holdings | 335 | 146 |
| YTD Return | +8.31% | +9.77%Best |
| 1Y Return | +11.70% | +12.34%Best |
| 3Y Return (annualized) | +15.76% | +24.08%Best |
| 5Y Return (annualized) | +10.72% | +13.00%Best |
| Volatility (annualized) | 13.3%Best | 17.1% |
| Max Drawdown | -48.2%Best | -51.4% |
| $10,000 over 5 years | $16,639 | $18,424Best |
| Top 10 Weight | 33.4%Best | 63.6% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 21, 2006 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 18, 2026 (20.4 years).
VIG vs VUG growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.4 years both funds cover.
VIG vs VUG Performance
Vanguard Dividend Appreciation ETF (VIG) is an ETF from Vanguard (US) and Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US). Over the past year VIG returned +11.70% while VUG returned +12.34%. Year to date, VIG is up 8.31% versus a gain of 9.77% for VUG.
Over three years, VIG compounded at +15.76% per year against +24.08% for VUG; over five years the annualized figures are +10.72% and +13.00% respectively. Across the full 20-year window we track, VUG has the edge at +11.91% annualized vs +8.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 17.1% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. 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 1.48% against 0.38% for VUG.
Holdings Overlap
35.0% of VIG's money is in holdings VUG also owns. 40.4% of VUG's money is in holdings VIG also owns.
The two portfolios partly overlap.
34 positions in common, counted across the 322 positions we hold weights for in VIG and 147 in VUG, against full books of 335 and 146.
What only one of them owns
Our book lists 112 positions for VUG that do not appear in our book for VIG (59.4% of the fund), and 265 for VIG that do not appear in VUG (64.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VIG | Weight in VUG | Difference |
|---|---|---|---|
| AAPLApple, Inc | 4.45% | 12.59% | 8.14% |
| MSFTMicrosoft Corp | 4.34% | 9.59% | 5.25% |
| AVGOBroadcom Inc | 4.63% | 4.46% | 0.17% |
| LLYEli Lilly & Co. | 3.93% | 2.72% | 1.21% |
| VVisa Inc Class A | 2.45% | 1.66% | 0.79% |
| MAMastercard Inc | 2.00% | 1.27% | 0.73% |
| COSTCostco Wholesale Corp. | 1.83% | 1.19% | 0.64% |
| LRCXLam Research Corp | 1.58% | 1.03% | 0.55% |
| KLACKla Corp | 1.03% | 0.68% | 0.35% |
| ORCLOracle Corp - Common | 0.95% | 0.63% | 0.32% |
40.4% of VUG is already inside VIG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which performed better, VIG or VUG?
Over the past year VIG returned +11.70% vs +12.34% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.45% vs +11.91% for VUG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or VUG?
VUG has been the more volatile fund at 17.1% 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 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VIG and VUG?
40.4% of VUG's money is in holdings VIG also owns. 40.4% of VUG's is in holdings VIG also owns. They hold 34 positions in common, counted across the 322 positions we hold weights for in VIG and 147 in VUG.
Which pays a higher dividend, VIG or VUG?
VIG yields 1.48% while VUG yields 0.38%, so VIG currently pays the higher dividend yield.
Is VUG better than VIG?
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. VIG is less concentrated, with 33.4% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.