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ETF Comparison

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

A head-to-head comparison of Vanguard Dividend Appreciation Index Fund ETF Shares and Vanguard Growth ETF covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

  • VIGInvestors who want higher current income (1.63% vs 0.41% for VUG).
  • VUGInvestors who want a growth tilt and can accept bigger swings for higher upside.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVIGVUG
Full nameVanguard Dividend Appreciation Index Fund ETF SharesVanguard Growth ETF
IssuerVanguardVanguard
Last Close$245.38 as of August 14, 2026$89.34 as of August 14, 2026
Distribution yield1.63%0.41%
Distribution Safety Score™ 10090
Expense ratio0.06%0.04%
AUM$114B$230B
Distribution frequencyQuarterlyQuarterly
Underlying indexa basket of Vanguard Dividend Appreciation ETF holdingsCRSP US Large Cap Growth Index
ObjectiveSeeks to track the performance of the S&P U.S. Dividend Growers Index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments.Track the CRSP US Large Cap Growth Index for diversified exposure to U.S. growth equities.
Asset classEquityEquity
Inception date04/21/200601/26/2004
Beta0.741.26
Last dividend$0.9990$0.0923
Ex-dividend date06/26/202606/26/2026

Bottom lineChoose VIG if you want higher current income (1.63% vs 0.41% for VUG). Choose VUG if you want a growth tilt and can accept bigger swings for higher upside.

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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$4658B

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 VIG and VUG.

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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

VIG has outpaced VUG over the trailing twelve months, posting a 18.78% total return against 16.31%. The picture flips over 10 years, though — VUG has compounded at 17.76% a year, ahead of VIG at 13.16%. VIG has been the steadier holding, though — annualized volatility of 12.3% against 19.7% 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 Apr 2006Volatility Sharpe Sortino Max drawdown
VIG12.14%18.78%16.50%10.66%13.16%10.31%12.3%0.881.29-15.0%
VUG10.50%16.31%24.33%12.99%17.76%13.10%19.7%0.881.26-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Apr 2006” measures every fund from April 27, 2006 — 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

VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) and VUG (Vanguard Growth ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VIG offers the higher yield at 1.63% vs 0.41% 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 0.06%.

They track different benchmarks: VIG is linked to a basket of Vanguard Dividend Appreciation ETF holdings while VUG tracks CRSP 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.

Who should choose each?

Choose VIG

Vanguard Dividend Appreciation Index Fund ETF Shares

  • Want higher current income — VIG yields 1.63% vs 0.41% for VUG.
  • Want simple, diversified core exposure as a portfolio building block.
  • Prefer lower volatility — a beta of 0.7 vs 1.3 for VUG.

Choose VUG

Vanguard Growth ETF

  • Want a growth tilt and can accept larger swings for more upside.
  • Want to keep costs low — a 0.04% expense ratio vs 0.06% for VIG.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, VIG would generate roughly $13.58/month, while VUG would produce $3.42/month, at current distribution rates. Both pay quarterly distributions.

VIG yield1.63%
VUG yield0.41%
Monthly diff on $10K$10.17

Cost & efficiency

Over 10 years on $10,000, VIG would cost approximately $60 in fees vs $40 for VUG (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

VIG ER0.06%
VUG ER0.04%

Strategy & risk

VIG holds a basket of Vanguard Dividend Appreciation ETF holdings with an index approach, while VUG tracks CRSP US Large Cap Growth Index with a growth approach. Beta is 0.74 for VIG and 1.26 for VUG, indicating VIG is less volatile relative to the market.

VIG beta0.74
VUG beta1.26

Fund details

VIG is managed by Vanguard (launched 04/21/2006) with $114B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $230B in assets.

VIG AUM$114B
VUG AUM$230B
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Frequently asked questions

What is the current distribution yield for VIG and VUG?

VIG currently distributes 1.63% and VUG 0.41%, 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 VIG or VUG better for dividend income?

It depends on your goals. VIG 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 VIG and VUG?

VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) holds a basket of Vanguard Dividend Appreciation ETF holdings with an index 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 VIG 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 VIG 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 — VIG scores 100, VUG scores 90, so VIG's payout currently looks the more resilient of the two. VIG has also shown lower price volatility (beta 0.74 vs 1.26 for VUG). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VIG or VUG?

VIG has an expense ratio of 0.06% 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 VIG vs VUG generate?

At current rates, $10,000 in VIG would generate roughly $13.58 per month ($163.00 annually). The same in VUG would produce about $3.42 per month ($41.00 annually).

Which has performed better historically, VIG or VUG?

VIG has outpaced VUG over the trailing twelve months, posting a 18.78% total return against 16.31%. The picture flips over 10 years, though — VUG has compounded at 17.76% a year, ahead of VIG at 13.16%. VIG has been the steadier holding, though — annualized volatility of 12.3% against 19.7% for VUG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VIG vs VUG — at a glance

Generated August 15, 2026.

Overview

VIG and VUG are both large-cap U.S. equity ETFs issued by Vanguard, but they track fundamentally different stock universes. VIG targets companies with at least a decade of rising dividend payments, while VUG follows a pure growth index with no dividend requirement. The result is a stark difference in yield, volatility, and the types of businesses held.

How they differ

VIG's defining feature is its 10-year dividend-growth screen: it holds mature, cash-generative companies that have proven capital discipline through consistent dividend increases. VUG holds growth stocks without that dividend filter, capturing tech and other high-growth names that typically reinvest earnings rather than distribute cash. The yield gap is substantial—VIG distributes 1.63% annually while VUG yields just 0.41%, reflecting this fundamental difference in portfolio composition.

VIG's beta of 0.74 signals lower market volatility than the broad market, a typical trait of dividend-growth screens. VUG's beta of 1.26 captures the higher swing of growth stocks, which amplify broad market moves. On costs, VUG edges out VIG slightly (0.04% vs. 0.06% expense ratio), though both are near-trivial at this scale. AUM tells a different story: VUG is roughly twice the size at $230B versus VIG's $114B.

Who each is best for

VIG: Fits investors seeking steady current income from equity exposure while maintaining below-market volatility. Designed for allocations that prioritize companies with a track record of returning capital to shareholders through rising dividends.

VUG: Fits investors prioritizing long-term capital appreciation with minimal current income and a higher tolerance for equity swings. Designed for allocations where reinvested earnings and price growth matter more than cash distributions today.

Key risks to know

  • Dividend-screen concentration in VIG: The 10-year dividend-growth requirement filters heavily toward financial services, utilities, and mature industrials. This thematic overlap may amplify sector-specific downside if rates rise sharply or dividend-paying sectors underperform growth.
  • Growth-stock volatility in VUG: A beta of 1.26 means VUG is likely to fall harder in market downturns and climb faster in rallies. Investors cannot afford to panic-sell during equity corrections without crystallizing losses.
  • Style rotation risk: These two funds occupy opposite ends of the growth-versus-value spectrum. Extended periods of growth outperformance (as in 2023–2024) will widen performance gaps, and extended dividend-stock rallies will reverse them. Neither timing shift is predictable.
  • Earnings-yield divergence: VIG's holdings depend on sustained ability to grow dividends; economic slowdowns that pressure earnings growth may trigger dividend cuts. VUG's holdings can reinvest earnings in R&D or acquisitions, providing more flexibility in weaker revenue environments.

Bottom line

VIG and VUG represent a core tradeoff between income and growth. If you value current yield and lower volatility, VIG's 1.63% distribution and 0.74 beta stand out; if you prioritize growth and can tolerate wider swings, VUG's pure-growth exposure and lower expense ratio may align better with your time horizon. Past performance doesn't predict future results, and neither fund's style advantage is permanent.

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.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns T-bills vs. money market funds vs. CDs

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