VUG vs VWO
Vanguard Morningstar Growth ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VUG or VWO?
Large Cap Growth against Large Cap Blend.
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window.
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 | VUG | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $219.5B | $122.0B |
| Dividend Yield | 0.38% | 2.29% |
| Holdings | 146 | 6,334 |
| YTD Return | +11.65%Best | +9.58% |
| 1Y Return | +13.57%Best | +13.53% |
| 3Y Return (annualized) | +26.10%Best | +18.27% |
| 5Y Return (annualized) | +12.87%Best | +6.44% |
| Volatility (annualized) | 16.8%Best | 20.1% |
| Max Drawdown | -51.4%Best | -68.3% |
| $10,000 over 5 years | $18,319Best | $13,662 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Jan 26, 2004 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 23, 2026 (21.5 years).
VUG vs VWO 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 21.5 years both funds cover.
VUG vs VWO Performance
Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VUG returned +13.57% while VWO returned +13.53%. Year to date, VUG is up 11.65% versus a gain of 9.58% for VWO.
Over three years, VUG compounded at +26.10% per year against +18.27% for VWO; over five years the annualized figures are +12.87% and +6.44% respectively. Across the full 22-year window we track, VUG has the edge at +11.79% annualized vs +4.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 16.8% 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 -51.4% for VUG and -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VUG charges 0.03% per year while VWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VUG currently yields 0.38% against 2.29% for VWO.
Holdings Overlap
We hold position weights for 147 holdings in VUG and 4,688 in VWO, totalling 99.9% and 89.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 147 positions we hold weights for in VUG and 4,688 in VWO, against full books of 146 and 6,334.
You are not choosing between two funds in isolation.
Whichever of VUG and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VUG or VWO?
VUG has an expense ratio of 0.03% while VWO charges 0.06%. VUG is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VUG or VWO?
Over the past year VUG returned +13.57% vs +13.53% for VWO, so VUG leads on 1-year performance. Over the longest common window we track (22 years), VUG annualized +11.79% vs +4.93% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VUG or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.8% for VUG. Worst drawdown: VUG -51.4% vs VWO -68.3%.
Should I hold both VUG and VWO?
VUG and VWO have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VUG or VWO?
VUG yields 0.38% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than VUG?
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.