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 4, 2026

Vanguard

ETFs115

Total AUM$4484B

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

	VGT	VOO
Full name	Vanguard Information Technology ETF	Vanguard S&P 500 ETF
Issuer	Vanguard	Vanguard
Last Close	$114.64 as of July 4, 2026	$684.84 as of July 4, 2026
Distribution yield	0.48%	1.15%
Distribution Safety Score	89	100
Expense ratio	0.10%	0.03%
AUM	$143B	$1033B
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	1.42	1.0
Last dividend	$0.1384	$1.9622
Ex-dividend date	06/24/2026	06/26/2026

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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.

Total returns

VGT has outpaced VOO over the trailing twelve months, posting a 40.16% total return against 21.69%. The lead holds up over 10 years too: VGT has compounded at 25.04% a year, against 15.38% for VOO. VOO has been the steadier holding, though — annualized volatility of 14.9% against 24.2% for VGT. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Sep 2010	Volatility	Sharpe	Sortino	Max drawdown
VGT	21.44%	40.16%	28.30%	18.86%	25.04%	21.10%	24.2%	0.85	1.20	-27.2%
VOO	9.34%	21.69%	20.30%	13.11%	15.38%	14.91%	14.9%	0.95	1.36	-18.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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 0.48% 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 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 ($1033B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $4.00/month, while VOO would produce $9.58/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.48%

VOO yield1.15%

Monthly diff on $10K$5.58

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 tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach, while VOO tracks S&P 500 Index with a large cap approach. Beta is 1.42 for VGT and 1.0 for VOO, indicating VOO is less volatile relative to the market.

VGT beta1.42

VOO beta1.0

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $143B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1033B in assets.

VGT AUM$143B

VOO AUM$1033B

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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 approach, 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 0.10% 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 $4.00 per month ($48.00 annually). The same in VOO would produce about $9.58 per month ($115.00 annually).

Which has performed better historically, VGT or VOO?

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VGT vs VOO — at a glance

Generated June 2026 from current fund data.

Overview

VGT and VOO are both Vanguard equity ETFs, but they target entirely different market segments. VGT isolates information technology stocks across the U.S. market cap spectrum via the MSCI US Investable Market Index/Information Technology, while VOO tracks the broad S&P 500. The core distinction: VGT is a concentrated sector play; VOO is a diversified market baseline.

How they differ

The biggest difference is scope. VOO holds 500 of the largest U.S. companies across all sectors, while VGT holds only technology stocks—a subset that currently makes up roughly a quarter of the broader market. This explains VGT's beta of 1.42 versus VOO's 1.0: technology amplifies market moves both directions.

Second, yield tells you about income orientation. VOO distributes 1.11% annually; VGT distributes 0.48%. Tech stocks historically generate less dividend income than the broad market because they reinvest profits into growth. That gap reflects real portfolio composition, not fund mechanics.

Third, VGT charges 0.10% annually versus VOO's 0.03%. Both are dirt cheap by industry standards, but VOO's lower fee reflects its massive $1.033 trillion in assets and simpler index-tracking job. VGT's higher ratio still costs less than almost all active funds.

Who each is best for

VGT: Fits investors comfortable with concentrated sector exposure who believe technology will outpace the broader economy over their holding period. Works for portfolios that already own broad market exposure and want to tilt toward tech, or for those with high risk tolerance and longer time horizons.

VOO: Designed for investors building a core equity holding that mirrors overall U.S. market performance. Matches those prioritizing simplicity, diversification across sectors, and minimal fees—the foundational choice for passive portfolio construction.

Key risks to know

Sector concentration: Technology represents roughly 25% of the S&P 500 by weight. VGT doubles down on that bet. A sustained sector rotation away from tech—whether driven by rates, regulation, or competitive disruption—will hit VGT far harder than VOO.

Higher volatility: VGT's 1.42 beta means it will fall more sharply than VOO in downturns and rise more in rallies. An investor comfortable with a 20% market decline should expect roughly a 28% decline in VGT.

Earnings sensitivity: Tech valuations are often forward-looking and sentiment-dependent. Rising interest rates or disappointment in profit growth can trigger outsized drawdowns in VGT relative to the broader market.

Lower dividend cushion: VGT's 0.48% yield provides less downside cushion during downturns than VOO's 1.11%, meaning price appreciation matters more to total return.

Bottom line

VOO works as a market-core holding; VGT works as a satellite position within a diversified portfolio. If you want U.S. equity exposure that mirrors the overall economy, VOO's simplicity and breadth stand out. If you're confident in technology's long-term dominance and can tolerate higher volatility, VGT offers concentrated upside—but at the cost of meaningful drawdown risk during sector downturns. Past performance doesn't predict future results.

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