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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.

Data updated September 4, 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 40.63% total return against 15.89%. The lead holds up over 10 years too: VGT has compounded at 24.44% a year, against 17.68% 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
VGT28.62%40.63%30.19%18.48%24.44%15.09%24.6%0.891.27-27.2%
VUG9.39%15.89%23.00%12.05%17.68%12.31%19.7%0.831.18-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer 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
Underlying indexperformance of the MSCI US Investable Market IndexMorningstar US Large Cap Growth Index
Last Close$121.27 as of September 4, 2026$88.45 as of September 4, 2026
Distribution rate0.46%0.42%
Distribution Safety Score™ 9390
Safety-Adjusted Yield 0.43%0.38%
Expense ratio0.09%0.03%
AUM$146B$225B
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
Beta1.471.26
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.

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 yield0.46%0.42%
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Vanguard
ETFs116
Total AUM$4650B

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 0.42% 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 have different reference exposures: VGT is linked to performance of the MSCI US Investable Market Index while VUG is linked to Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($225B), but assets alone do not establish trading costs or 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 tracks performance of the MSCI US Investable Market Index, 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 $146B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $225B in assets.

VGT AUM$146B
VUG AUM$225B
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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 0.42% and 0.46% as of September 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 0.42%, based on fund data updated September 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 1.26 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 40.63% total return against 15.89%. The lead holds up over 10 years too: VGT has compounded at 24.44% a year, against 17.68% 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 September 5, 2026.

Overview

VGT and VUG are both Vanguard equity ETFs tracking growth-oriented U.S. companies, but they differ significantly in scope and volatility. The key distinction is sector concentration versus diversification: VGT is a pure-play technology fund; VUG is a broad growth fund where technology is a holding, not the entire portfolio.

How they differ

VGT's single biggest difference is its sector-specific mandate. It holds only information technology stocks—software, hardware, semiconductors—making it a concentrated bet on one industry. VUG, by contrast, holds large-cap growth companies across all sectors, so technology is just one component of a diversified portfolio.

Second, VGT carries higher beta (1.47) than VUG (1.26), reflecting the greater volatility of tech-focused equity exposure versus a broader growth portfolio. VGT's 0.46% yield is also slightly higher than VUG's 0.42%, though both are modest. On fees, VUG edges VGT: 0.03% versus 0.09%. VGT has $146B in assets; VUG is larger at $225B.

Who each is best for

VGT: Fits investors who have conviction in long-term technology sector growth and can tolerate sector-level volatility. Works for portfolios already diversified across other sectors where a concentrated technology position makes sense as a tactical or strategic overweight.

VUG: Designed for investors seeking broad large-cap growth exposure with lower volatility than a single-sector alternative. Suits allocations that want growth-oriented equity without betting the portfolio on any one industry's fortunes.

Key risks to know

  • Sector concentration: VGT's entire portfolio is technology. A sector downturn—whether from valuations, regulation, macro rates, or earnings disappointment—hits the entire fund with no offset from other industries. VUG's diversification across sectors provides natural hedging when technology underperforms.
  • Beta and drawdown magnitude: VGT's 1.47 beta means it typically amplifies market moves more than VUG. In a growth-stock correction, VGT's larger swings can mean steeper losses from peak to trough, even if both recover eventually.
  • Valuation concentration: Technology as a sector can trade at elevated multiples relative to the broader market, particularly during periods of lower interest rates. If growth-stock valuations compress, technology-heavy portfolios tend to suffer outsized declines.
  • Overlapping holdings: VGT and VUG likely hold many of the same large tech names (Apple, Microsoft, Nvidia, etc.), so owning both adds sector concentration risk rather than diversification.

Bottom line

If you want pure-play technology exposure as part of a diversified overall portfolio, VGT's focused strategy and lower expense ratio make it viable; if you prefer broad growth across sectors with lower volatility, VUG's larger AUM and lower fees offer a simpler entry point. Consider whether your other holdings already tilt heavily toward technology before adding VGT, since owning both funds concentrates sector risk rather than reducing it.

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

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