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

Data updated August 19, 2026

Best for

  • VOOInvestors who want higher current income (1.11% vs 0.42% 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

VOO has outpaced VUG over the trailing twelve months, posting a 20.95% total return against 14.65%. The picture flips over 10 years, though — VUG has compounded at 17.61% a year, ahead of VOO at 15.30%. VOO has been the steadier holding, though — annualized volatility of 14.9% 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 Sep 2010Volatility Sharpe Sortino Max drawdown
VOO13.20%20.95%22.16%13.44%15.30%15.02%14.9%1.051.51-18.7%
VUG8.75%14.65%24.42%12.99%17.61%16.75%19.7%0.881.27-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVOOVUG
Full nameVanguard S&P 500 ETFVanguard Morningstar Growth ETF
IssuerVanguardVanguard
Last Close$705.40 as of August 19, 2026$87.86 as of August 19, 2026
Distribution yield1.11%0.42%
Distribution Safety Score™ 10090
Expense ratio0.03%0.03%
AUM$1045B$230B
Distribution frequencyQuarterlyQuarterly
Underlying indexS&P 500 IndexMorningstar US Large Cap Growth Index
ObjectiveTrack the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.Seeks to track the Morningstar US Large Cap Growth Index.
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 (1.11% 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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Income calculator

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Vanguard
ETFs116
Total AUM$4703B

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.

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Quick verdict

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

VOO offers the higher yield at 1.11% vs 0.42% for VUG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

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

VOO is the larger fund by assets ($1045B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VOO would generate roughly $9.25/month, while VUG would produce $3.50/month, at current distribution rates. Both pay quarterly distributions.

VOO yield1.11%
VUG yield0.42%
Monthly diff on $10K$5.75

Cost & efficiency

Over 10 years on $10,000, VOO would cost approximately $30 in fees vs $30 for VUG (simplified, not compounded). Both charge the same expense ratio.

VOO ER0.03%
VUG ER0.03%

Strategy & risk

VOO tracks S&P 500 Index with a large cap approach, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 1.0 for VOO and 1.26 for VUG, making VOO the less volatile of the two by this measure.

VOO beta1.0
VUG beta1.26

Fund details

VOO is managed by Vanguard (launched 09/07/2010) with $1045B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $230B in assets.

VOO AUM$1045B
VUG AUM$230B
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Frequently asked questions

What is the current distribution yield for VOO and VUG?

VOO currently distributes 1.11% and VUG 0.42%, 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 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 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 VOO 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 VOO 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 — VOO scores 100, VUG scores 90, so VOO's payout currently looks the more resilient of the two. VOO has also shown lower price volatility (beta 1.00 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, VOO or VUG?

VOO and VUG both charge the same expense ratio of 0.03%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in VOO vs VUG generate?

At current rates, $10,000 in VOO would generate roughly $9.25 per month ($111.00 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 20.95% total return against 14.65%. The picture flips over 10 years, though — VUG has compounded at 17.61% a year, ahead of VOO at 15.30%. VOO has been the steadier holding, though — annualized volatility of 14.9% 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

VOO vs VUG — at a glance

Generated August 16, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

VOO and VUG are both Vanguard equity ETFs tracking U.S. large-cap indexes, but they differ fundamentally in their constituent tilt. VOO holds all 500 companies in the S&P 500 Index—a broad, market-cap-weighted blend of value and growth stocks. VUG isolates only the growth-oriented names within the large-cap universe via the CRSP US Large Cap Growth Index, concentrating the portfolio around companies with higher earnings momentum and lower valuations relative to expected growth.

How they differ

The core difference is index construction: VOO captures the entire S&P 500 across all styles, while VUG excludes value-heavy names and overweights growth characteristics. That structural choice cascades into three observable metrics. First, VUG carries a higher beta of 1.26 compared to VOO's 1.0, reflecting greater sensitivity to market swings—growth stocks amplify both rallies and declines. Second, VUG's distribution rate is 0.41%, less than one-third of VOO's 1.10%, because growth companies retain more earnings and pay lighter dividends, whereas the S&P 500 blend includes dividend-paying financials and industrials. Third, VOO is roughly four times larger by assets under management ($1045B versus $230B), meaning it trades with tighter spreads and lower execution costs for most investors.

Who each is best for

VOO: Fits investors building a core equity allocation who prefer broad exposure to the entire large-cap market without making a bet on growth versus value. The ultra-low 0.03% expense ratio and enormous liquidity suit both lump-sum and regular contributions.

VUG: Designed for investors with a longer time horizon and higher risk tolerance who believe growth-oriented companies will outperform the broader market and are comfortable with the volatility that elevated beta entails. Works well as a satellite holding alongside a value-tilted or balanced core.

Key risks to know

  • Style concentration: VUG excludes value stocks by construction, meaning its performance diverges sharply from VOO during value-outperformance cycles. Multi-year stretches of value leadership can lag significantly.
  • Higher volatility: Beta of 1.26 indicates VUG typically swings 26% harder than the market in both directions. Drawdowns during bear markets will be steeper.
  • Valuation sensitivity: Growth funds carry higher price-to-earnings multiples, making them more vulnerable to rising interest rates and sentiment shifts away from future earnings toward near-term cash flow.
  • Overlap and tracking: Both funds hold many of the same mega-cap tech and growth names (Apple, Microsoft, Nvidia, etc.). Holdings overlap is substantial, so selecting one does not materially diversify away from the other's top performers.

Bottom line

VOO suits investors seeking maximum diversification and stability at minimal cost; VUG appeals to those willing to accept higher volatility in exchange for growth-oriented exposure. If you're building a foundational equity position, VOO's breadth and liquidity stand out; if you're tilting toward growth within a larger portfolio, VUG's beta and lower yield reflect that concentration. 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

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