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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.

Data updated September 18, 2026

Best for

  • VTVInvestors who want higher current income (1.96% 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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

VTV has outpaced VUG over the trailing twelve months, posting a 21.98% total return against 12.93%. The picture flips over 10 years, though — VUG has compounded at 17.93% a year, ahead of VTV at 12.66%. VTV 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 Jan 2004Volatility Sharpe Sortino Max drawdown
VTV15.95%21.98%18.18%12.55%12.66%9.66%12.3%1.001.45-14.5%
VUG9.77%12.93%23.98%12.56%17.93%12.31%19.7%0.871.25-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “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$221.25 as of September 18, 2026$88.75 as of September 18, 2026
Distribution rate1.96%0.42%
Distribution Safety Score™ 9790
Safety-Adjusted Yield 1.90%0.38%
Expense ratio0.03%0.03%
AUM$192B$228B
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
Beta0.671.27
Last dividend$1.082$0.0923
Ex-dividend date06/26/202606/26/2026

Bottom lineChoose VTV if you want higher current income (1.96% 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$4663B

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 1.96% vs 0.42% 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 ($228B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VTV would generate roughly $16.33/month, while VUG would produce $3.50/month, at current distribution rates. Both pay quarterly distributions.

VTV yield1.96%
VUG yield0.42%
Monthly diff on $10K$12.83

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 0.67 for VTV and 1.27 for VUG, making VTV the less volatile of the two by this measure.

VTV beta0.67
VUG beta1.27

Fund details

VTV is managed by Vanguard (launched 01/26/2004) with $192B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $228B in assets.

VTV AUM$192B
VUG AUM$228B
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Frequently asked questions

What is the current distribution rate for VTV and VUG?

VTV currently distributes 1.96% and VUG 0.42%, 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 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 0.67 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 $16.33 per month ($196.00 annually). The same in VUG would produce about $3.50 per month ($42.00 annually).

Which has performed better historically, VTV or VUG?

VTV has outpaced VUG over the trailing twelve months, posting a 21.98% total return against 12.93%. The picture flips over 10 years, though — VUG has compounded at 17.93% a year, ahead of VTV at 12.66%. VTV 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

VTV vs VUG — at a glance

Generated September 19, 2026.

Overview

VTV and VUG are both Vanguard ETFs tracking Morningstar US large-cap indexes, but they pursue opposite value orientations. VTV targets the value segment of large-cap stocks—companies trading at lower multiples—while VUG targets the growth segment, focusing on higher-revenue expansion and momentum. Both charge 0.03%, launched on the same date, and distribute quarterly, making the choice essentially a style bet rather than one of cost or structure.

How they differ

The fundamental split is style: VTV owns value stocks (lower price-to-book, price-to-earnings ratios) while VUG owns growth stocks (higher earnings growth, momentum). VTV yields 1.96% against VUG's 0.42%, reflecting value's dividend strength versus growth's reinvestment bias. The risk profiles diverge sharply—VTV carries a beta of 0.67, meaning it typically moves about one-third less than the broad market during swings; VUG's beta of 1.27 suggests it amplifies market moves by roughly a quarter.

Who each is best for

VTV: Fits investors seeking steadier income and lower volatility, or those who believe value stocks are underpriced relative to growth after a period of growth dominance.

VUG: Fits investors with longer time horizons who can tolerate larger price swings in exchange for potential capital appreciation, and those betting on sustained earnings growth and technological innovation.

Key risks to know

  • Style concentration risk. Each fund owns only one half of the market—value or growth. Extended periods when one style outperforms or underperforms the other can leave either fund trailing a total-market benchmark by a wide margin, as growth did from 2015–2020 and value has done in other periods.
  • Beta mismatch. VTV's low beta (0.67) can lag during sustained market rallies when growth accelerates fastest, while VUG's elevated beta (1.27) amplifies drawdowns when sentiment turns risk-off. Combining these into a core holding requires accepting one or the other will underperform at critical moments.
  • Valuation-dependent dividend yield. VTV's 1.96% yield is mechanically higher because value stocks pay more dividends; in a recession or sharp contraction, dividend cuts can shrink that advantage quickly, whereas VUG's low yield makes it less vulnerable to distribution fluctuations.

Bottom line

If you want steady income and lower volatility, VTV's value tilt and 1.96% yield deliver on that profile; if you prioritize long-term capital growth and can tolerate 1.27 beta swings, VUG's growth exposure is designed for that path. Neither is "safer"—they're exposed to different market risks at different intensities. Past performance doesn't predict future results, and the choice between them depends on your market outlook and risk tolerance, not cost.

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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