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 May 20, 2026

Vanguard

ETFs48

Total AUM$11763.3B

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 serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

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

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Side-by-side snapshot

	VGT	VOO
Full name	Vanguard Information Technology ETF	Vanguard S&P 500 ETF
Issuer	Vanguard	Vanguard
Last Close	$112.13 as of May 20, 2026	$678.91 as of May 20, 2026
Distribution yield	0.33%	1.04%
Expense ratio	0.09%	0.03%
AUM	$146.5B	$1600.2B
Distribution frequency	Quarterly	Quarterly
Underlying index	Basket (Vanguard Information Technology ETF holdings)	S&P 500 Index
Objective	Seeks 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 class	Equity	Equity
Inception date	01/26/2004	09/07/2010
Beta	1.29	1.0
Last dividend	$0.09	$1.87
Ex-dividend date	03/24/2026	03/27/2026

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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.

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 1.04% vs 0.33% 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 0.09%.

They track different benchmarks: VGT is linked to Basket (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 ($1600.2B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $2.75/month, while VOO would produce $8.67/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.33%

VOO yield1.04%

Monthly diff on $10K$5.92

Cost & efficiency

Over 10 years on $10,000, VGT would cost approximately $90 in fees vs $30 for VOO (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

VGT ER0.09%

VOO ER0.03%

Strategy & risk

VGT tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach, while VOO tracks S&P 500 Index using a large cap strategy. Beta is 1.29 for VGT and 1.0 for VOO, indicating VOO is less volatile relative to the market.

VGT beta1.29

VOO beta1.0

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $146.5B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1600.2B in assets.

VGT AUM$146.5B

VOO AUM$1600.2B

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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) tracks Basket (Vanguard Information Technology ETF holdings) with a basket strategy, 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. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, VGT or VOO?

VGT has an expense ratio of 0.09% 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 $2.75 per month ($33.00 annually). The same in VOO would produce about $8.67 per month ($104.00 annually).

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VGT vs VOO — at a glance

Generated April 2026 from current fund data.

Overview

VGT and VOO are both large, low-cost Vanguard equity ETFs, but they track different market segments. VGT isolates the information technology sector—roughly 25-30% of the S&P 500 on its own—while VOO holds all 500 companies in the S&P 500 across every sector. The choice between them hinges on whether you want concentrated tech exposure or broad market diversification.

How they differ

The biggest difference is scope. VGT holds only technology stocks (software, hardware, semiconductors); VOO holds the entire S&P 500, so tech is just one piece. That shows up in beta: VGT's 1.18 versus VOO's 1.0, meaning VGT swings harder in both directions.

On yield, VOO wins decisively. Its 1.09% distribution rate beats VGT's 0.38%—that's nearly triple. Both pay quarterly, and both have rock-bottom expense ratios (VOO at 0.03%, VGT at 0.09%), but size matters: VOO's $1.42 trillion in AUM dwarfs VGT's $121 billion, which means tighter spreads and deeper liquidity in VOO.

The volatility gap is real. VGT's 52-week range was $484–$807; VOO's was $467–$646. Over the past year, tech had bigger swings. If you want to own the market with minimal drama, VOO is the steadier vehicle.

Who each is best for

VGT: Growth-focused investors comfortable with single-sector concentration, wanting leveraged exposure to long-term technology adoption, or those using it as a satellite holding alongside broader funds.

VOO: Core portfolio builders seeking diversified large-cap U.S. equity exposure with minimal fees, higher dividend yield, and lower volatility; ideal as a foundational holding in both taxable and tax-advantaged accounts.

Key risks to know

Sector concentration (VGT): Technology represents roughly 30% of the S&P 500 weight. Holding 100% in tech means you miss the defensive benefits of healthcare, staples, and financials; VGT will lag in periods when tech underperforms.

Valuation risk (VGT): Tech stocks typically trade at higher multiples than the broad market. A compression in valuations could hit VGT harder than VOO.

Duration (VOO): A portfolio of 500 large-cap stocks is less volatile but also slower-growing on average than a concentrated tech bet. VOO captures upside more slowly during tech rallies.

Interest-rate sensitivity: Both hold equity, but tech is particularly sensitive to falling discount rates. Rising rates tend to pressure VGT more than VOO.

Bottom line

If you're building a core portfolio and want income plus stability, VOO's 1.09% yield, lower fee, and broad diversification make it the obvious choice. If you believe technology will drive long-term returns and want concentrated exposure—accepting the higher beta and lower yield as tradeoffs—VGT lets you overweight that conviction. Past performance, including tech's recent strength, doesn't predict future results; what matters is your time horizon and risk tolerance.

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