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 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.

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Side-by-side snapshot

	VGT	VUG
Full name	Vanguard Information Technology ETF	Vanguard Growth ETF
Issuer	Vanguard	Vanguard
Last Close	$114.64 as of July 4, 2026	$85.50 as of July 4, 2026
Distribution yield	0.48%	0.43%
Distribution Safety Score	89	91
Expense ratio	0.10%	0.04%
AUM	$143B	$222B
Distribution frequency	Quarterly	Quarterly
Underlying index	Basket (Vanguard Information Technology ETF holdings)	CRSP US Large Cap Growth 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 CRSP US Large Cap Growth Index for diversified exposure to U.S. growth equities.
Asset class	Equity	Equity
Inception date	01/26/2004	01/26/2004
Beta	1.42	1.24
Last dividend	$0.1384	$0.0923
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 VUG over the trailing twelve months, posting a 40.16% total return against 18.59%. The lead holds up over 10 years too: VGT has compounded at 25.04% a year, against 17.84% for VUG. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Jan 2004	Volatility	Sharpe	Sortino	Max drawdown
VGT	21.44%	40.16%	28.30%	18.86%	25.04%	14.92%	24.2%	0.85	1.20	-27.2%
VUG	5.63%	18.59%	22.52%	12.88%	17.84%	12.24%	19.6%	0.81	1.16	-22.8%

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 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 0.48% 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 Basket (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 ($222B), 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 VUG would produce $3.58/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.48%

VUG yield0.43%

Monthly diff on $10K$0.42

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 tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach, while VUG tracks CRSP US Large Cap Growth Index with a growth approach. Beta is 1.42 for VGT and 1.24 for VUG, indicating VUG is less volatile relative to the market.

VGT beta1.42

VUG beta1.24

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $143B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $222B in assets.

VGT AUM$143B

VUG AUM$222B

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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) tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach, 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. 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 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 $4.00 per month ($48.00 annually). The same in VUG would produce about $3.58 per month ($43.00 annually).

Which has performed better historically, VGT or VUG?

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VGT vs VUG — at a glance

Generated June 2026 from current fund data.

Overview

VGT and VUG are both Vanguard equity ETFs launched the same day, but they slice the U.S. growth universe differently. VGT focuses exclusively on information technology stocks across the market cap spectrum, while VUG tracks the broader CRSP US Large Cap Growth Index—which includes technology but also healthcare, financials, consumer discretionary, and other growth-oriented sectors. The key distinction: VGT is a concentrated sector bet; VUG is a diversified large-cap growth fund.

How they differ

VGT's biggest difference is its narrow sector focus: it holds only technology companies, making it a pure-play tech vehicle. VUG spreads across the entire large-cap growth universe, so technology is a meaningful but not dominant position. That sector focus translates directly to beta: VGT's 1.42 beta versus VUG's 1.24 reflects VGT's amplified sensitivity to market moves and tech-specific swings. On yield, both are extremely lean—VGT at 0.48% and VUG at 0.06%—which is typical for growth funds that prioritize capital appreciation over dividends. VUG's lower expense ratio (0.04% vs. 0.10%) and larger asset base ($222B vs. $143B) offer a small cost advantage, though both are already cheap by industry standards.

Who each is best for

VGT: Fits investors who have strong conviction in technology sector tailwinds and are comfortable with higher volatility in exchange for concentrated exposure to software, semiconductors, and hardware makers.

VUG: Fits investors seeking diversified U.S. large-cap growth exposure with lower volatility and broader sector representation—less of a directional bet on any single industry.

Key risks to know

Sector concentration risk (VGT): Holding only technology stocks means VGT's returns move tightly with tech valuations and earnings cycles. A sector rotation away from technology could drag the fund faster and harder than a diversified alternative.

Elevated beta (VGT): With a beta of 1.42, VGT amplifies broad market downturns by roughly 42%. During a 20% market correction, VGT could easily fall 28% or more, making it a rougher ride than VUG's 1.24 beta.

Dividend yield compression (both): Both funds yield less than 0.5%, so investors expecting meaningful income from these holdings should recalibrate expectations. Returns depend almost entirely on capital appreciation.

Growth-style sensitivity: Both track growth indexes, so they underperform during value rotations. Extended periods of value outperformance can create extended stretches of underperformance for both funds.

Bottom line

If you want pure technology exposure and can tolerate outsized volatility, VGT delivers that focus with 20 years of track record. If you prefer growth with diversification across sectors and lower day-to-day swings, VUG's broader mandate and cheaper fees make it the more defensive choice. Past performance doesn't predict future results; both funds remain sensitive to interest rates, which heavily influence growth-stock valuations.

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