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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 Growth 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 VUG.

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Side-by-side snapshot

VGTVUG
Full nameVanguard Information Technology ETFVanguard Growth ETF
IssuerVanguardVanguard
Last Close$113.23 as of July 21, 2026$85.33 as of July 21, 2026
Distribution yield0.49%0.43%
Distribution Safety Score™ 8991
Expense ratio0.10%0.04%
AUM$139B$220B
Distribution frequencyQuarterlyQuarterly
Underlying indexa basket of Vanguard Information Technology ETF holdingsCRSP 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.Track the CRSP US Large Cap Growth Index for diversified exposure to U.S. growth equities.
Asset classEquityEquity
Inception date01/26/200401/26/2004
Beta1.441.26
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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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 32.53% total return against 14.26%. The lead holds up over 10 years too: VGT has compounded at 24.34% a year, against 17.47% for VUG. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
VGT20.09%32.53%27.10%18.69%24.34%14.83%24.3%0.811.14-27.2%
VUG5.54%14.26%21.80%12.92%17.47%12.21%19.6%0.781.12-22.8%

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 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.

Quick verdict

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

VGT offers the higher yield at 0.49% vs 0.43% 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 0.04% compared to 0.10%.

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

VUG is the larger fund by assets ($220B), 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 VUG would produce $3.58/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.49%
VUG yield0.43%
Monthly diff on $10K$0.50

Cost & efficiency

Over 10 years on $10,000, VGT would cost approximately $100 in fees vs $40 for VUG (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

VGT ER0.10%
VUG ER0.04%

Strategy & risk

VGT holds a basket of Vanguard Information Technology ETF holdings, while VUG tracks CRSP US Large Cap Growth Index with a growth approach. Beta is 1.44 for VGT and 1.26 for VUG, indicating VUG is less volatile relative to the market.

VGT beta1.44
VUG beta1.26

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $139B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $220B in assets.

VGT AUM$139B
VUG AUM$220B
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Frequently asked questions

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 Growth ETF) tracks CRSP 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.

Which has lower fees, VGT or VUG?

VGT has an expense ratio of 0.10% while VUG charges 0.04%. 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 $4.08 per month ($49.00 annually). The same in VUG would produce about $3.58 per month ($43.00 annually).

Which has performed better historically, VGT or VUG?

VGT has outpaced VUG over the trailing twelve months, posting a 32.53% total return against 14.26%. The lead holds up over 10 years too: VGT has compounded at 24.34% a year, against 17.47% 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 July 2026 from current fund data.

Overview

VGT and VUG are both broad-market Vanguard ETFs launched on the same day, but they carve out distinctly different slices of U.S. equities. VGT focuses exclusively on information technology stocks—software, hardware, semiconductors—across the full market-cap spectrum, while VUG tracks large-cap growth companies across all sectors. The key difference: VGT is a sector bet; VUG is a style bet.

How they differ

VGT's defining move is its narrow focus on a single sector, which means it captures technology's outsized growth but forgoes diversification across healthcare, consumer discretionary, and other growth-oriented industries that VUG includes. VUG is nearly twice as large ($222B vs. $143B in AUM) and charges half as much to own—0.04% versus 0.10%—because it tracks a passive large-cap growth index rather than a more specialized tech index.

Beta tells the story of their volatility gap: VGT's 1.44 beta means it swings 44% harder than the broad market, while VUG's 1.26 beta is more moderate. Both distribute quarterly, but VGT yields slightly higher at 0.47% versus 0.42%, a thin margin that reflects tech's generally low dividend payout culture. VUG's broader sector exposure naturally smooths out earnings concentration risk.

Who each is best for

VGT: Fits investors who hold strong conviction in technology's structural growth tailwinds and can tolerate single-sector concentration. Works well as a satellite position within a diversified portfolio rather than a core holding.

VUG: Designed for investors seeking pure large-cap U.S. growth exposure without sector bets, especially those who value broad diversification and the lowest possible drag from fees. Suits a core-portfolio role or investors indifferent to which growth sectors lead.

Key risks to know

  • Sector concentration. VGT's 100% weighting to information technology leaves it vulnerable to sector-wide downturns—regulatory action on Big Tech, semiconductor supply shocks, or a shift in capital flows away from growth stocks can create sharp drawdowns with no natural hedge.
  • Beta divergence in downturns. VGT's 1.44 beta suggests it will fall harder than VUG in a market correction, amplifying losses during equity bear markets when both funds are typically most stressed.
  • Technology valuation sensitivity. VGT holds companies with high price-to-earnings multiples and minimal near-term earnings power, making the fund especially sensitive to interest-rate moves and shifts in discount-rate assumptions.
  • Expense ratio gap. VGT's 0.10% fee is 2.5× VUG's 0.04%, a small but persistent drag that compounds over decades, particularly meaningful given tech's modest 0.47% yield.

Bottom line

If you believe technology will outpace other sectors over your holding period and can tolerate higher volatility, VGT's concentrated exposure offers clearer upside participation; if you want growth exposure without placing a sector bet, VUG's broader mandate, lower cost, and gentler beta suit a less convictional approach. Past performance does not guarantee future results, and sector leadership can shift unpredictably.

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

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