Compare and contrast key facts about Vanguard Growth ETF (VUG) and Vanguard S&P 500 ETF (VOO).
VUG and VOO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VUG is a passively managed fund by Vanguard that tracks the performance of the CRSP U.S. Large Cap Growth Index. It was launched on Jan 26, 2004. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both VUG and VOO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VUG or VOO.
VOO - Performance Comparison. In the year-to-date period, VUG achieves a 25.23% return, which is significantly higher than VOO's 17.75% return. Over the past 10 years, VUG has outperformed VOO with an annualized return of 15.80%, while VOO has yielded a comparatively lower 13.05% annualized return.
In the past year, VOO returned a total of 28.35%, which is significantly lower than VUG's 39.43% return. Over the past 10 years, VOO has had annualized average returns of 12.98% , compared to 15.71% for VUG. These numbers are adjusted for stock splits and include dividends.
VTI is a solid choice for those looking for a stable, long-term investment that mirrors the performance of the overall market. Conversely, VUG is more suitable for investors aiming for higher growth in the short-to-medium-term, who are comfortable with the ups and downs of the market.
Many people pair VOO with the Vanguard Total Bond Market ETF (BND) in a broader portfolio. The fixed income ETF has $95 billion in assets and is the largest bond ETF trading in the U.S. BND has two-thirds of its assets in U.S. government bonds, with most of the remainder in investment-grade corporate bonds.
Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI.
Vanguard Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VUG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market.
QQQ - Performance Comparison. In the year-to-date period, VUG achieves a 24.93% return, which is significantly higher than QQQ's 21.80% return. Over the past 10 years, VUG has underperformed QQQ with an annualized return of 15.78%, while QQQ has yielded a comparatively higher 19.00% annualized return.
VOO - Performance Comparison. In the year-to-date period, VUG achieves a 24.93% return, which is significantly higher than VOO's 17.63% return. Over the past 10 years, VUG has outperformed VOO with an annualized return of 15.78%, while VOO has yielded a comparatively lower 13.05% annualized return.
VUG is less expensive with a Total Expense Ratio (TER) of 0.04%, versus 0.1% for VGT. VUG is up 27.19% year-to-date (YTD) with +$7.80B in YTD flows. VGT performs better with 27.8% YTD performance, and +$3.80B in YTD flows.
VUG has a dividend yield of 0.49% and paid $1.88 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Jun 27, 2024.
The same investment in an S&P 500 ETF would be worth around $64,000 (not including fees in both cases). While the Vanguard Growth ETF has outperformed the S&P 500 in that span (9.6% to 7.5% average annual returns), the difference has been even more pronounced in the past decade, when growth stocks have soared.
QQQ - Performance Comparison. In the year-to-date period, VUG achieves a 24.93% return, which is significantly higher than QQQ's 21.80% return. Over the past 10 years, VUG has underperformed QQQ with an annualized return of 15.78%, while QQQ has yielded a comparatively higher 19.00% annualized return.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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