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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 ETF and Vanguard Morningstar Growth ETF covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • VIGInvestors who want higher current income (1.59% vs 0.40% for VUG).
  • 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

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.

VIG has lagged VUG over the trailing twelve months, posting a 10.49% total return against 13.58%. The lead holds up over 10 years too: VUG has compounded at 18.03% a year, against 12.95% for VIG. VIG has been the steadier holding, though — annualized volatility of 12.2% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Apr 2006Volatility Sharpe Sortino Max drawdown
VIG7.05%10.49%16.68%10.40%12.95%9.99%12.2%0.901.32-15.0%
VUG11.56%13.58%26.02%13.72%18.03%13.07%19.7%0.951.38-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 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 Apr 2006” measures every fund from April 27, 2006 — 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.
MetricVIGVUG
Full nameVanguard Dividend Appreciation ETFVanguard Morningstar Growth ETF
IssuerVanguardVanguard
Underlying indexS&P U.S. Dividend Growers IndexMorningstar US Large Cap Growth Index
Last Close$233.31 as of September 30, 2026$90.11 as of September 30, 2026
Distribution rate1.59%0.40%
Trailing 12-month yield1.56%0.38%
Distribution Safety Score™ 10090
Safety-Adjusted Yield 1.59%0.36%
Expense ratio0.04%0.03%
AUM$111B$235B
Distribution frequencyQuarterlyQuarterly
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.Seeks to track the Morningstar US Large Cap Growth Index.
Asset classEquityEquity
Inception date04/21/200601/26/2004
Beta0.741.27
Last dividend$0.93 payable today$0.091 payable today
Ex-dividend date09/28/202609/28/2026

Bottom lineChoose VIG if you want higher current income (1.59% vs 0.40% 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$4677B

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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Quick verdict

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

VIG offers the higher yield at 1.59% 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 0.04%.

They have different reference exposures: VIG is linked to S&P U.S. Dividend Growers 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 ($235B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose VIG

Vanguard Dividend Appreciation ETF

  • Want higher current income — VIG yields 1.59% vs 0.40% 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 Morningstar Growth ETF

  • Want a growth tilt and can accept larger swings for more upside.
  • Want to keep costs low — a 0.03% expense ratio vs 0.04% 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 $39.75 cash per distribution, while VUG would produce $10.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VIG yield1.59%
VUG yield0.40%
Cash diff on $10K$29.75

Cost & efficiency

Over 10 years on $10,000, VIG would cost approximately $40 in fees vs $30 for VUG (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VIG ER0.04%
VUG ER0.03%

Strategy & risk

VIG tracks S&P U.S. Dividend Growers Index, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 0.74 for VIG and 1.27 for VUG, making VIG the less volatile of the two by this measure.

VIG beta0.74
VUG beta1.27

Fund details

VIG is managed by Vanguard (launched 04/21/2006) with $111B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $235B in assets.

VIG AUM$111B
VUG AUM$235B
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Frequently asked questions

What is the current distribution rate for VIG and VUG?

VIG currently distributes 1.59% and VUG 0.40%, 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 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 ETF) tracks S&P U.S. Dividend Growers Index, while VUG (Vanguard Morningstar Growth ETF) tracks Morningstar 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 1.27 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 0.04% 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 VIG vs VUG generate?

At current rates, $10,000 in VIG would generate roughly $39.75 cash per distribution ($159.00 annually). The same in VUG would produce about $10.00 cash per distribution ($40.00 annually).

Which has performed better historically, VIG or VUG?

VIG has lagged VUG over the trailing twelve months, posting a 10.49% total return against 13.58%. The lead holds up over 10 years too: VUG has compounded at 18.03% a year, against 12.95% for VIG. VIG has been the steadier holding, though — annualized volatility of 12.2% 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 September 26, 2026.

Overview

VIG and VUG are both large-cap equity ETFs from Vanguard, but they differ fundamentally in strategy: VIG targets companies with at least 10 years of consecutive dividend growth, while VUG follows a growth index focused on companies with high profitability and earnings momentum. The result is a dividend-focused defensive portfolio versus a growth-oriented, lower-yielding one.

How they differ

The biggest difference is strategic orientation. VIG holds dividend growers—companies with a long track record of increasing payouts—while VUG holds growth stocks selected for profitability and earnings expansion. The gap reflects VIG's income focus versus VUG's emphasis on capital appreciation.

Volatility follows suit. VIG carries a beta of 0.74, meaning it typically moves less than the broad market; VUG's beta of 1.27 signals it amplifies market swings. VUG is substantially larger, with $235B in assets versus VIG's $111B, though both charge minimal fees—0.03% and 0.04% respectively.

Who each is best for

VIG: Fits investors seeking current income paired with some downside cushion, especially those drawn to companies that have demonstrated the financial strength to raise dividends consistently through economic cycles.

VUG: Designed for growth-oriented investors with longer time horizons who prioritize capital appreciation over current yield and can tolerate greater short-term volatility.

Key risks to know

  • Dividend growth regress risk. VIG's 10-year dividend-growth screen filters for financial stability, but it doesn't guarantee future increases. Economic weakness or capital reallocation could interrupt dividend trajectories, eroding the portfolio's competitive edge.
  • Lower market participation. VIG's beta of 0.74 means it will lag in sustained bull markets. If growth stocks significantly outperform value and dividend payers over an extended period, VIG's lower volatility becomes a drag on total return.
  • Growth premium valuation risk. VUG holds stocks selected for profitability and earnings momentum, which often trade at elevated multiples. Market rotations away from growth or rising interest rates can compress these valuations quickly, hitting the fund's price harder than broader indexes.
  • Sector concentration overlap. Both funds hold large-cap U.S. equities and likely own many of the same mega-cap names, so their apparent diversification may be narrower than the number of holdings suggests.

Bottom line

If you want current income with reduced volatility, VIG's dividend-growth focus and lower beta appeal; if you prioritize capital growth and can tolerate swings, VUG's larger asset base and zero drag from dividend-picking logic align better. Past performance does not predict future results.

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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These comparisons follow the Dividend Vision methodology.