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ETF Comparison

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

A head-to-head comparison of Vanguard Morningstar Value ETF and Vanguard Morningstar Growth ETF covering yield, cost, risk, and income potential.

Updated October 9, 2026

How these figures are calculated: methodology.

Best for

  • VTVInvestors who want higher current income (1.84% 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.

VTV has outpaced VUG over the trailing twelve months, posting a 20.33% total return against 13.77%. The picture flips over 10 years, though — VUG has compounded at 18.24% a year, ahead of VTV at 12.53%. VTV has been the steadier holding, though — annualized volatility of 12.2% against 19.6% 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 Jan 2004Volatility Sharpe Sortino Max drawdown
VTV16.14%20.33%19.79%12.29%12.53%9.64%12.2%1.121.62-14.5%
VUG13.86%13.77%26.11%14.01%18.24%12.46%19.6%0.961.38-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 9, 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 Jan 2004” measures every fund from January 30, 2004 — 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.
MetricVTVVUG
Full nameVanguard Morningstar Value ETFVanguard Morningstar Growth ETF
IssuerVanguardVanguard
Underlying indexMorningstar US Large Cap Value IndexMorningstar US Large Cap Growth Index
Last Close$220.59 as of October 9, 2026$91.97 as of October 9, 2026
Distribution rate1.84%0.40%
Trailing 12-month yield1.89%0.38%
Distribution Safety Score™ 9790
Safety-Adjusted Yield 1.78%0.36%
Expense ratio0.03%0.03%
AUM$185B$236B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the Morningstar US Large Cap Value Index.Seeks to track the Morningstar US Large Cap Growth Index.
Asset classEquityEquity
Inception date01/26/200401/26/2004
Beta0.681.27
Last dividend$1.017$0.091
Ex-dividend date09/28/202609/28/2026

Bottom lineChoose VTV if you want higher current income (1.84% 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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Vanguard
ETFs116
Total AUM$4669B

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

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

VTV offers the higher yield at 1.84% vs 0.40% for VUG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They have different reference exposures: VTV is linked to Morningstar US Large Cap Value 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 ($236B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VTV would generate roughly $46.00 cash per distribution, while VUG would produce $10.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VTV yield1.84%
VUG yield0.40%
Cash diff on $10K$36.00

Cost & efficiency

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

VTV ER0.03%
VUG ER0.03%

Strategy & risk

VTV tracks Morningstar US Large Cap Value Index with an index approach, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 0.68 for VTV and 1.27 for VUG, making VTV the less volatile of the two by this measure.

VTV beta0.68
VUG beta1.27

Fund details

VTV is managed by Vanguard (launched 01/26/2004) with $185B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $236B in assets.

VTV AUM$185B
VUG AUM$236B
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Frequently asked questions

What is the current distribution rate for VTV and VUG?

VTV currently distributes 1.84% and VUG 0.40%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VTV or VUG better for dividend income?

It depends on your goals. VTV 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 VTV and VUG?

VTV (Vanguard Morningstar Value ETF) tracks Morningstar US Large Cap Value Index with an index 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 VTV 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 VTV 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 — VTV scores 97, VUG scores 90, so VTV's payout currently looks the more resilient of the two. VTV has also shown lower price volatility (beta 0.68 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, VTV or VUG?

VTV 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 VTV vs VUG generate?

At current rates, $10,000 in VTV would generate roughly $46.00 cash per distribution ($184.00 annually). The same in VUG would produce about $10.00 cash per distribution ($40.00 annually).

Which has performed better historically, VTV or VUG?

VTV has outpaced VUG over the trailing twelve months, posting a 20.33% total return against 13.77%. The picture flips over 10 years, though — VUG has compounded at 18.24% a year, ahead of VTV at 12.53%. VTV has been the steadier holding, though — annualized volatility of 12.2% 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

VTV vs VUG — at a glance

Generated October 10, 2026.

Overview

VTV and VUG are both Vanguard large-cap index ETFs launched on the same date, but they track opposing Morningstar indexes: VTV follows the US Large Cap Value Index, while VUG tracks the US Large Cap Growth Index. The funds offer a direct way to express a tactical choice between value and growth stocks within the same size class, with identical 0.03% expense ratios but sharply different yield profiles and market sensitivities.

How they differ

The fundamental split is strategy: VTV isolates stocks trading at lower valuations relative to earnings and book value, while VUG holds companies with higher expected earnings growth. The two funds' market sensitivity tells the same story: VTV carries a beta of 0.68, meaning it typically moves less than the broad market, while VUG's beta of 1.27 suggests it amplifies market swings.

Who each is best for

VTV: Fits investors seeking exposure to large-cap stocks trading at lower valuations, with a preference for current income over capital appreciation and higher comfort with defensive positioning in market downturns.

VUG: Fits investors prioritizing long-term capital growth over current yield, with risk tolerance for higher volatility and conviction that earnings expansion will drive returns over the holding period.

Key risks to know

  • Value underperformance risk. If earnings growth and profitability favor large-cap growth stocks for an extended period, VTV's lower valuations may not compress further, and its lower beta may dampen upside capture relative to VUG.
  • Growth multiple compression risk. VUG holds stocks dependent on sustained high valuations and earnings expectations. If rates rise sharply or economic growth slows, multiples can contract rapidly, exaggerating downside relative to VTV's more defensive positioning.
  • Limited diversification overlap. Value and growth definitions produce different holdings within the large-cap universe, so allocating heavily to one fund at the expense of the other concentrates exposure to a single style.
  • Dividend reinvestment timing. VTV's higher distribution rate (1.84% vs. 0.40%) creates more frequent cash to reinvest; in downturns, reinvestment occurs at lower prices, which can amplify recovery volatility.

Bottom line

If you prioritize income and lower volatility, VTV's 1.84% yield and 0.68 beta offer value-style exposure; if you expect growth earnings to outpace multiple expansion and can tolerate 1.27 market sensitivity, VUG's lower yield aligns with a capital-appreciation focus. Both charge identical fees and track well-established indexes; the choice hinges on your market outlook and return preference, not fund quality. 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.

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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These comparisons follow the Dividend Vision methodology.