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Dividend Vision

ETF Comparison

VUG vs VGT: A Growth Style, or the Technology Sector?

A head-to-head of Vanguard Growth and Vanguard Information Technology covering what each owns, overlap, and fees.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • VGTInvestors who want broad equity exposure.
  • VUGInvestors who 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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VGT has outpaced VUG over the trailing twelve months, posting a 37.02% total return against 14.00%. The lead holds up over 10 years too: VGT has compounded at 25.03% a year, against 18.12% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
VGT36.25%37.02%35.55%21.10%25.03%15.33%24.6%1.061.52-27.2%
VUG12.87%14.00%26.46%13.89%18.12%12.42%19.7%0.971.40-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — 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
Underlying indexMSCI US Investable Market Index/Information Technology 25/50Morningstar US Large Cap Growth Index
Last Close$128.32 as of October 2, 2026$91.17 as of October 2, 2026
Distribution rate0.46%0.40%
Trailing 12-month yield0.37%0.38%
Distribution Safety Score™ 9390
Safety-Adjusted Yield 0.43%0.36%
Expense ratio0.09%0.03%
AUM$155B$235B
Distribution frequencyQuarterlyQuarterly
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
Beta1.491.27
Last dividend$0.1465$0.091
Ex-dividend date09/23/202609/28/2026

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.

VUG vs VGT: growth style or tech sector?

VUG is large-cap growth. VGT is the technology sector. Mega-cap tech sits in both; they are not two independent bets.

VGTVUG
What it ownsUS information technologyUS large-cap growth
Expense ratio0.09%0.03%
Distribution rate0.46%0.40%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4676B

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.

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

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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 0.40% 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 have different reference exposures: VGT is linked to MSCI US Investable Market Index/Information Technology 25/50 while VUG is linked to Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($235B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $11.50 cash per distribution, while VUG would produce $10.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VGT yield0.46%
VUG yield0.40%
Cash diff on $10K$1.50

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 tracks MSCI US Investable Market Index/Information Technology 25/50 with an index approach, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 1.49 for VGT and 1.27 for VUG, making VUG the less volatile of the two by this measure.

VGT beta1.49
VUG beta1.27

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $155B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $235B in assets.

VGT AUM$155B
VUG AUM$235B
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Frequently asked questions

What is the difference between VUG and VGT?

VUG (Vanguard Morningstar Growth ETF) is large-cap growth across sectors. VGT (Vanguard Information Technology ETF) is the information-technology sector. VUG already holds many of the same mega-cap tech names. Cost is 0.03% versus 0.09%; distributions are 0.40% and 0.46% as of October 2026. Holding both doubles the tech weight inside VUG.

What is the current distribution rate for VGT and VUG?

VGT currently distributes 0.46% and VUG 0.40%, based on fund data updated October 2026. Distribution rate 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.

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 1.27 vs 1.49 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 $11.50 cash per distribution ($46.00 annually). The same in VUG would produce about $10.00 cash per distribution ($40.00 annually).

Which has performed better historically, VGT or VUG?

VGT has outpaced VUG over the trailing twelve months, posting a 37.02% total return against 14.00%. The lead holds up over 10 years too: VGT has compounded at 25.03% a year, against 18.12% 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 October 3, 2026.

Overview

VGT and VUG are both low-cost Vanguard equity ETFs launched the same day, but they differ fundamentally in scope and growth style. VGT tracks the broad MSCI US Investable Market Information Technology Index, capturing the entire tech sector across large, mid, and small-cap stocks. VUG targets large-cap growth companies across all sectors via the Morningstar US Large Cap Growth Index, making it a broader growth play that happens to have significant tech exposure but is not confined to it.

How they differ

The single biggest difference is breadth: VGT is sector-specific (technology only), while VUG is a broad large-cap growth fund that includes financials, healthcare, consumer goods, and other sectors alongside tech. This makes VUG more diversified by construction, though their actual holdings overlap significantly given tech's dominance in growth investing.

Second, VGT carries higher beta at 1.49 versus VUG's 1.27, reflecting its tilt toward smaller tech names and the sector's higher volatility. That means VGT amplifies market moves more sharply in both directions.

Third, VUG is cheaper to own at 0.03% versus 0.09%, a 0.06% gap. VUG also has a larger asset base at $235B compared to $155B, though both are substantial. Their yields are nearly identical—0.46% for VGT and 0.40% for VUG—reflecting the modest dividend orientation of growth-style stocks.

Who each is best for

  • VGT: Investors who want concentrated sector exposure to technology and are comfortable with the volatility that comes from betting on a single industry across the full market-cap spectrum.
  • VUG: Investors seeking broad large-cap growth exposure with a growth tilt and want to diversify across sectors while keeping costs to a minimum.

Key risks to know

  • Concentration risk in VGT. Holding only the tech sector leaves the portfolio vulnerable to sector-specific downturns—regulatory pressure, supply-chain disruptions, or cyclical weakness in semiconductors or software can hurt the entire fund without offset from other industries.
  • Higher volatility in VGT. The 1.49 beta means VGT swings harder than the market in both rallies and declines, a reality that can test an investor's conviction during steep corrections.
  • Growth-style drawdowns. Both funds are growth-oriented and will underperform during periods when value outperforms; neither offers downside cushion from defensive sectors or dividend stability in a rising-rate environment.
  • Overlapping holdings and correlated performance. Given tech's weight in large-cap growth indices, VGT and VUG's portfolios likely overlap substantially, meaning they may move together despite different mandates—limiting diversification if held together.

Bottom line

If you want pure technology sector exposure and can tolerate higher volatility, VGT offers focused access; if you prefer broad growth across multiple sectors at the lowest cost, VUG's larger asset base and lower fee make a cleaner fit. Both have identical inception dates and quarterly distributions, so the choice turns on whether you want sector concentration or diversification. Past performance does not guarantee future results.

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

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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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These comparisons follow the Dividend Vision methodology.