VOT vs VUG

Quick Verdict

VUG has a lower expense ratio. VUG delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.

Lower Fees: VUGHigher Returns: VUGMore Diversified: VUG

Side-by-Side Comparison

MetricVOTVUGWinner
Expense Ratio0.05%0.03%
AUM$19.9B$223.2B
Dividend Yield0.65%0.47%
Holdings136155
YTD Return+9.33%+9.57%
1Y Return+8.58%+16.51%
3Y Return (annualized)+15.30%+24.05%
5Y Return (annualized)+5.56%+13.00%
Volatility (annualized)18.6%16.5%
Max Drawdown-60.3%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionAug 17, 2006Jan 26, 2004

VOT vs VUG Performance

Vanguard Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VOT returned +8.58% while VUG returned +16.51%. Year to date, VOT is up 9.33% versus a gain of 9.57% for VUG.

Over three years, VOT compounded at +15.30% per year against +24.05% for VUG; over five years the annualized figures are +5.56% and +13.00% respectively. Across the full 20-year window we track, VUG has the edge at +11.25% annualized vs +9.62%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOT has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 16.5% for VUG. 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 -60.3% for VOT 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VOT charges 0.05% per year while VUG charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VOT currently yields 0.65% against 0.47% for VUG.

Holdings Overlap

11.7%overlap

VOT and VUG share 84 holdings out of 183 unique holdings combined, representing a 11.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VOTWeight in VUGDifference
VRT2.82%0.37%2.45%
WDC2.41%0.62%1.79%
STX2.37%0.61%1.76%
PWRProProPro
HWMProProPro
DDOGProProPro
BEProProPro
HOODProProPro
NETProProPro
COHRProProPro
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Frequently Asked Questions

Which is cheaper, VOT or VUG?

VOT has an expense ratio of 0.05% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VOT or VUG?

Over the past year VOT returned +8.58% vs +16.51% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (20 years), VOT annualized +9.62% vs +11.25% for VUG. Past performance does not guarantee future results.

Which is riskier, VOT or VUG?

VOT has been the more volatile fund at 18.6% annualized versus 16.5% for VUG. Worst drawdown: VOT -60.3% vs VUG -51.4%.

Should I hold both VOT and VUG?

VOT and VUG have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VOT and VUG?

VOT and VUG share 84 common holdings with a 11.7% weight overlap. Combined, they hold 183 unique securities.

Which pays a higher dividend, VOT or VUG?

VOT yields 0.65% while VUG yields 0.47%, so VOT currently pays the higher dividend yield.

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