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ETF Comparison

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

A head-to-head comparison of Vanguard Information Technology ETF and Vanguard Morningstar Growth ETF covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Best for

  • VGTInvestors who want broad equity exposure.
  • VUGInvestors who want a growth tilt and can accept bigger swings for higher upside.

Jump to the side-by-side numbers

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 VUG over the trailing twelve months, posting a 35.97% total return against 14.65%. The lead holds up over 10 years too: VGT has compounded at 24.36% a year, against 17.61% for VUG. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
VGT26.00%35.97%31.57%19.20%24.36%15.02%24.6%0.941.34-27.2%
VUG8.75%14.65%24.42%12.99%17.61%12.31%19.7%0.881.27-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVGTVUG
Full nameVanguard Information Technology ETFVanguard Morningstar Growth ETF
IssuerVanguardVanguard
Last Close$119.79 as of August 19, 2026$87.86 as of August 19, 2026
Distribution yield0.46%0.42%
Distribution Safety Score™ 9390
Expense ratio0.09%0.03%
AUM$151B$230B
Distribution frequencyQuarterlyQuarterly
Underlying indexa basket of Vanguard Information Technology ETF holdingsMorningstar US Large Cap Growth 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.Seeks to track the Morningstar US Large Cap Growth Index.
Asset classEquityEquity
Inception date01/26/200401/26/2004
Beta1.471.26
Last dividend$0.1384$0.0923
Ex-dividend date06/24/202606/26/2026

Bottom lineChoose VGT if you want broad equity exposure. Choose VUG if you want a growth tilt and can accept bigger swings for higher upside.

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Vanguard
ETFs116
Total AUM$4703B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

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Quick verdict

VGT (Vanguard Information Technology ETF) and VUG (Vanguard Morningstar Growth ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VGT offers the higher yield at 0.46% vs 0.42% for VUG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VUG is cheaper with an expense ratio of 0.03% compared to 0.09%.

They track different benchmarks: VGT is linked to a basket of Vanguard Information Technology ETF holdings while VUG tracks Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($230B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $3.83/month, while VUG would produce $3.50/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.46%
VUG yield0.42%
Monthly diff on $10K$0.33

Cost & efficiency

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

VGT ER0.09%
VUG ER0.03%

Strategy & risk

VGT holds a basket of Vanguard Information Technology ETF holdings, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 1.47 for VGT and 1.26 for VUG, making VUG the less volatile of the two by this measure.

VGT beta1.47
VUG beta1.26

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $151B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $230B in assets.

VGT AUM$151B
VUG AUM$230B
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Frequently asked questions

What is the current distribution yield for VGT and VUG?

VGT currently distributes 0.46% and VUG 0.42%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VGT or VUG better for dividend income?

It depends on your goals. VGT 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 VUG?

VGT (Vanguard Information Technology ETF) holds a basket of Vanguard Information Technology ETF holdings, while VUG (Vanguard Morningstar Growth ETF) tracks Morningstar US Large Cap Growth Index with a growth approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both VGT and VUG?

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.

Is VGT or VUG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VGT scores 93, VUG scores 90, so VGT's payout currently looks the more resilient of the two. VUG has also shown lower price volatility (beta 1.26 vs 1.47 for VGT). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VGT or VUG?

VGT has an expense ratio of 0.09% while VUG 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 VUG generate?

At current rates, $10,000 in VGT would generate roughly $3.83 per month ($46.00 annually). The same in VUG would produce about $3.50 per month ($42.00 annually).

Which has performed better historically, VGT or VUG?

VGT has outpaced VUG over the trailing twelve months, posting a 35.97% total return against 14.65%. The lead holds up over 10 years too: VGT has compounded at 24.36% a year, against 17.61% for VUG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VGT vs VUG — at a glance

Generated August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

VGT and VUG are both Vanguard equity ETFs launched the same day, but they track different universes. VGT focuses exclusively on the information technology sector across all market caps (large, mid, and small), while VUG targets large-cap growth companies across all sectors. The key distinction: VGT is a concentrated sector play, while VUG is a broad diversified growth exposure.

How they differ

VGT's biggest difference is its narrow sector focus on technology, whereas VUG provides broad large-cap growth exposure across utilities, healthcare, financials, and other sectors. VGT has a higher beta of 1.47 compared to VUG's 1.26, reflecting both sector concentration and inclusion of smaller-cap tech names. The yield spread is minimal—VGT's 0.45% distribution rate versus VUG's 0.41%—but VUG has a lower expense ratio of 0.04% against VGT's 0.10%. VUG is substantially larger with $230B in AUM versus VGT's $147B, which typically translates to tighter spreads and deeper liquidity for the larger fund.

Who each is best for

VGT: Fits investors who believe technology will outperform and want concentrated exposure to hardware, software, semiconductors, and IT services without diversification drag from non-tech sectors.

VUG: Designed for growth-focused investors who want exposure to large-cap U.S. companies with higher earnings-growth profiles across multiple sectors, balancing growth orientation with broader economic diversification.

Key risks to know

  • Sector concentration risk in VGT. Technology stocks move together, and a tech downturn creates correlated losses across the entire fund in ways VUG's multi-sector approach avoids.
  • Higher volatility from VGT's beta. VGT's 1.47 beta means it amplifies market swings about 47% more than the overall market, compared to VUG's 26% amplification; this compounds during extended sell-offs.
  • Valuation sensitivity. Both funds hold growth stocks, which are sensitive to interest-rate changes and multiple compression. Tech hardware and software companies in VGT are especially vulnerable to rising discount rates.
  • VGT's small-cap component adds illiquidity risk. Unlike VUG's large-cap-only universe, VGT includes mid and small-cap tech names that may trade with wider spreads and lower volume during stress periods.

Bottom line

If you want maximum exposure to the technology sector and can tolerate its higher volatility, VGT offers that targeted bet; if you prefer growth orientation with sector diversification and lower fees, VUG delivers that with less beta and simpler tax efficiency. Past performance does not predict future results.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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