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ETF Comparison

VGT vs VOO: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Information Technology ETF and Vanguard S&P 500 ETF covering yield, cost, risk, and income potential.

Data updated July 21, 2026

Vanguard
ETFs116
Total AUM$4488B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VGT and VOO.

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Side-by-side snapshot

VGTVOO
Full nameVanguard Information Technology ETFVanguard S&P 500 ETF
IssuerVanguardVanguard
Last Close$113.23 as of July 21, 2026$682.21 as of July 21, 2026
Distribution yield0.49%1.15%
Distribution Safety Score™ 89100
Expense ratio0.10%0.03%
AUM$139B$985B
Distribution frequencyQuarterlyQuarterly
Underlying indexa basket of Vanguard Information Technology ETF holdingsS&P 500 Index
ObjectiveSeeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.Track the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset classEquityEquity
Inception date01/26/200409/07/2010
Beta1.441.0
Last dividend$0.1384$1.9622
Ex-dividend date06/24/202606/26/2026

Bottom lineChoose VGT if you want broad equity exposure. Choose VOO if you want higher current income (1.15% vs 0.49% for VGT).

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VGT has outpaced VOO over the trailing twelve months, posting a 32.53% total return against 19.43%. The lead holds up over 10 years too: VGT has compounded at 24.34% a year, against 15.03% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.9% against 24.3% for VGT. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Sep 2010Volatility Sharpe Sortino Max drawdown
VGT20.09%32.53%27.10%18.69%24.34%20.95%24.3%0.811.14-27.2%
VOO9.24%19.43%19.52%13.38%15.03%14.85%14.9%0.901.30-18.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Sep 2010” measures every fund from September 9, 2010 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

VGT (Vanguard Information Technology ETF) and VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VOO offers the higher yield at 1.15% vs 0.49% for VGT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.10%.

They track different benchmarks: VGT is linked to a basket of Vanguard Information Technology ETF holdings while VOO tracks S&P 500 Index, which means their performance drivers differ.

VOO is the larger fund by assets ($985B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $4.08/month, while VOO would produce $9.58/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.49%
VOO yield1.15%
Monthly diff on $10K$5.50

Cost & efficiency

Over 10 years on $10,000, VGT would cost approximately $100 in fees vs $30 for VOO (simplified, not compounded). The $70.00 difference may be offset by yield or performance.

VGT ER0.10%
VOO ER0.03%

Strategy & risk

VGT holds a basket of Vanguard Information Technology ETF holdings, while VOO tracks S&P 500 Index with a large cap approach. Beta is 1.44 for VGT and 1.0 for VOO, indicating VOO is less volatile relative to the market.

VGT beta1.44
VOO beta1.0

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $139B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $985B in assets.

VGT AUM$139B
VOO AUM$985B
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Frequently asked questions

Is VGT or VOO better for dividend income?

It depends on your goals. VOO currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VGT and VOO?

VGT (Vanguard Information Technology ETF) holds a basket of Vanguard Information Technology ETF holdings, while VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index with a large cap approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both VGT and VOO?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, VGT or VOO?

VGT has an expense ratio of 0.10% while VOO charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VGT vs VOO generate?

At current rates, $10,000 in VGT would generate roughly $4.08 per month ($49.00 annually). The same in VOO would produce about $9.58 per month ($115.00 annually).

Which has performed better historically, VGT or VOO?

VGT has outpaced VOO over the trailing twelve months, posting a 32.53% total return against 19.43%. The lead holds up over 10 years too: VGT has compounded at 24.34% a year, against 15.03% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.9% against 24.3% for VGT. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VGT vs VOO — at a glance

Generated July 2026 from current fund data.

Overview

VGT and VOO are both Vanguard equity ETFs tracking U.S. companies, but they differ fundamentally in scope and sector tilt. VOO holds all 500 stocks in the S&P 500 across every sector, while VGT zeroes in on technology and technology-adjacent companies in the MSCI US Investable Market Index. That sector concentration is the defining distinction: VGT overweights semiconductors, software, and hardware makers; VOO holds the broad market with a typical technology weighting of roughly 25–30%.

How they differ

The biggest difference is scope: VOO spans the full market across ten sectors; VGT is a single-sector play on information technology. Because of that, VGT carries a beta of 1.44—meaning it swings 44% harder than the market—while VOO's beta of 1.0 tracks the broad market by definition. VOO also yields more at 1.13% versus VGT's 0.47%, a reflection of VOO's exposure to higher-yielding sectors like financials, energy, and utilities that VGT excludes. VGT charges a hair more in fees (0.10% vs. 0.03%), though both are negligible, and VOO dwarfs VGT in scale at $1033B in AUM compared to $143B.

Who each is best for

VGT: Fits investors who already hold broad market exposure (through VOO, a 401k, or another vehicle) and want to tilt toward technology growth as a satellite position, accepting higher volatility and lower current yield for potential sector outperformance.

VOO: Designed for investors building a core U.S. equity holding who value simplicity, diversification across all sectors, and lower volatility; also appropriate as the foundation of a three-fund or five-fund portfolio.

Key risks to know

  • Sector concentration risk (VGT): Technology is roughly 30% of the broad market; VGT's 100% exposure means performance is entirely dependent on tech valuations and sentiment. A prolonged tech downturn leaves no ballast from healthcare, financials, or consumer staples.
  • Higher volatility in VGT: The 1.44 beta signals that VGT is likely to decline steeper in market sell-offs and rise sharper in rallies, making it unsuitable for investors uncomfortable with swings of 40%+ during equity corrections.
  • Valuation risk in semiconductor and software cycles: VGT's largest holdings—chipmakers and SaaS companies—are cyclical and sensitive to capital-expenditure cycles, interest rates, and inventory swings; broad-market positioning in VOO smooths that exposure.
  • Yield gap reflects structural exposure: VOO's higher distribution rate reflects its hold of more mature, dividend-paying sectors; VGT's lower yield is typical of growth-heavy tech and reflects reinvestment of earnings into R&D rather than dividends.

Bottom line

If you want core U.S. equity exposure with diversification and stability, VOO's breadth and low cost make it a straightforward choice; if you're already diversified elsewhere and want to amplify a technology allocation, VGT's sector focus and higher volatility could serve as a tactical overlay. Past performance in either sector doesn't predict future returns.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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