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ETF Comparison

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

A head-to-head comparison of Vanguard S&P 500 ETF and Vanguard Growth ETF covering yield, cost, risk, and income potential.

Data updated July 10, 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.

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

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Side-by-side snapshot

VOOVUG
Full nameVanguard S&P 500 ETFVanguard Growth ETF
IssuerVanguardVanguard
Last Close$690.69 as of July 10, 2026$86.98 as of July 10, 2026
Distribution yield1.14%0.42%
Distribution Safety Score 10091
Expense ratio0.03%0.04%
AUM$1033B$222B
Distribution frequencyQuarterlyQuarterly
Underlying indexS&P 500 IndexCRSP US Large Cap Growth Index
ObjectiveTrack the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.Track the CRSP US Large Cap Growth Index for diversified exposure to U.S. growth equities.
Asset classEquityEquity
Inception date09/07/201001/26/2004
Beta1.01.26
Last dividend$1.9622$0.0923
Ex-dividend date06/26/202606/26/2026

Bottom lineChoose VOO if you want higher current income (1.14% vs 0.42% for VUG). Choose VUG if you 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

VOO has outpaced VUG over the trailing twelve months, posting a 22.56% total return against 19.44%. The picture flips over 10 years, though — VUG has compounded at 17.83% a year, ahead of VOO at 15.36%. VOO has been the steadier holding, though — annualized volatility of 14.9% against 19.6% for VUG. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Sep 2010Volatility Sharpe Sortino Max drawdown
VOO10.60%22.56%21.17%13.35%15.36%14.97%14.9%1.001.43-18.7%
VUG7.46%19.44%23.64%12.99%17.83%16.79%19.6%0.861.22-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 9, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Sep 2010” measures every fund from September 9, 2010 — 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

VOO (Vanguard S&P 500 ETF) and VUG (Vanguard Growth ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VOO offers the higher yield at 1.14% vs 0.42% for VUG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.04%.

They track different benchmarks: VOO is linked to S&P 500 Index while VUG tracks CRSP US Large Cap Growth Index, which means their performance drivers differ.

VOO is the larger fund by assets ($1033B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VOO would generate roughly $9.50/month, while VUG would produce $3.50/month, at current distribution rates. Both pay quarterly distributions.

VOO yield1.14%
VUG yield0.42%
Monthly diff on $10K$6.00

Cost & efficiency

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

VOO ER0.03%
VUG ER0.04%

Strategy & risk

VOO tracks S&P 500 Index with a large cap approach, while VUG tracks CRSP US Large Cap Growth Index with a growth approach. Beta is 1.0 for VOO and 1.26 for VUG, indicating VOO is less volatile relative to the market.

VOO beta1.0
VUG beta1.26

Fund details

VOO is managed by Vanguard (launched 09/07/2010) with $1033B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $222B in assets.

VOO AUM$1033B
VUG AUM$222B
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Frequently asked questions

Is VOO or VUG better for dividend income?

It depends on your goals. VOO 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 VOO and VUG?

VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index with a large cap 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 VOO 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, VOO or VUG?

VOO has an expense ratio of 0.03% 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 VOO vs VUG generate?

At current rates, $10,000 in VOO would generate roughly $9.50 per month ($114.00 annually). The same in VUG would produce about $3.50 per month ($42.00 annually).

Which has performed better historically, VOO or VUG?

VOO has outpaced VUG over the trailing twelve months, posting a 22.56% total return against 19.44%. The picture flips over 10 years, though — VUG has compounded at 17.83% a year, ahead of VOO at 15.36%. VOO has been the steadier holding, though — annualized volatility of 14.9% against 19.6% for VUG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VOO vs VUG — at a glance

Generated July 2026 from current fund data.

Overview

VOO tracks the S&P 500 Index, holding all 500 of the largest U.S. companies with equal methodology across sectors and market caps. VUG tracks the CRSP US Large Cap Growth Index, tilting toward companies with higher expected earnings growth and excluding value-oriented equities. The core distinction: VOO is market-weight blend; VUG is a growth-filtered subset of large caps.

How they differ

VOO holds the entire S&P 500, while VUG excludes value stocks and overweights growth names—meaning VUG's 1.24 beta versus VOO's 1.0 reflects higher sensitivity to market swings and a tilt toward technology, healthcare, and other growth sectors. That growth tilt shows up in yield too: VOO distributes 1.15%, while VUG yields only 0.43%, because growth stocks typically pay smaller dividends. Both charge minimal fees (VOO at 0.03%, VUG at 0.04%), but VOO's $1033B in assets makes it one of the largest ETFs ever; VUG's $222B is still substantial but more specialized.

Who each is best for

VOO: Fits investors seeking core large-cap U.S. equity exposure with minimal cost and maximum diversification across the entire S&P 500, including both growth and value names.

VUG: Fits investors with a conviction that U.S. large-cap growth will outperform the broader market and who are comfortable with higher volatility and lower current income in pursuit of capital appreciation.

Key risks to know

  • Sector concentration in VUG: Growth stocks are clustered in technology and healthcare; a downturn in those sectors will hit VUG harder than VOO's diversified holdings.
  • Higher beta volatility in VUG: A 1.24 beta means VUG typically swings 24% more than the broader market in both directions; investors with lower risk tolerance may experience larger drawdowns during corrections.
  • Growth-to-value rotation risk: VUG structurally avoids value stocks; if value outperforms growth over an extended period, VUG will lag VOO by design, not because of manager skill but because of the index's construction.
  • Lower income sustainability in VUG: The 0.43% yield reflects the growth strategy, meaning far less cash return; investors relying on distributions will find little income from VUG holdings.

Bottom line

If you want broad S&P 500 exposure at rock-bottom cost with steady dividend income, VOO's blend and 1.15% yield stand out; if you're willing to accept higher volatility for growth-oriented positioning, VUG's tilt offers concentrated exposure to the sectors driving recent market performance. Neither approach is inherently wrong—the choice hinges on whether you prefer market-weight diversity or a deliberate growth tilt, and whether lower distributions in VUG align with your income goals. 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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