The Vanguard Growth ETF (VUG +0.11%) and the Vanguard S&P 500 Growth ETF (VOOG +0.27%) are both passively managed exchange-traded funds (ETFs) focused on U.S. large-cap growth companies.
While they share similar performance, each tracks a different index and takes a distinct approach to portfolio construction. Here’s how they compare on cost, performance, portfolio makeup, and risk.
Snapshot (cost & size)
| Metric | VOOG | VUG |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.07% | 0.04% |
| 1-yr return (as of Oct. 31, 2025) | 31.3% | 30.3% |
| Dividend yield | 0.49% | 0.43% |
| AUM | $20.7 billion | $342.5 billion |
| Beta (5Y monthly) | 1.03 | 1.14 |
Beta measures price volatility relative to the S&P 500.
VUG offers a lower expense ratio, and for cost-conscious investors, that slight fee advantage may be appealing -- especially at scale. VOOG’s dividend yield is slightly higher, but both funds offer modest income.
Performance & risk comparison
| Metric | VOOG | VUG |
|---|---|---|
| Max drawdown (5 y) | 32.74% | 35.61% |
| Growth of $1,000 over 5 years | $2,200 | $2,238 |
What's inside
The Vanguard Growth ETF tracks a broader set of large-cap U.S. growth stocks. It currently contains 160 holdings with a heavy focus on technology, with 62% of the fund allocated to tech stocks. Its top holdings include Nvidia, Microsoft, and Apple. The fund's massive $342.5 billion in assets under management make it one of the largest growth ETFs available.
The Vanguard S&P 500 Growth ETF, in contrast, focuses on the growth segment of the S&P 500, with 217 holdings and a notable tilt toward technology (43%) and communication services (15%). Like VUG, its top holdings include Nvidia, Microsoft, and Apple.
For more guidance on ETF investing, check out the full guide at this link.
Foolish take
VUG and VOOG are both growth-focused funds containing large-cap stocks, with similar total returns, dividend yields, and expense ratios.
In some ways, VOOG is more targeted than VUG. Although it contains more holdings (217 compared to 160), it only includes stocks from the S&P 500 with growth characteristics. At the same time, though, it offers more sector diversification with less of a tilt toward the technology industry, which can help limit risk.
VUG has experienced slightly higher levels of volatility in recent years, with a marginally higher beta and max drawdown than VOOG. That's to be expected given that this fund is more heavily weighted toward tech stocks, which can fluctuate wildly in the short term.
Both funds can be fantastic vehicles for growth, but their differences in size and sector allocation are factors investors should consider when deciding where to buy.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Index fund: A fund designed to track the performance of a specific market index, such as the S&P 500.
Large-cap: Refers to companies with a large market capitalization, typically over $10 billion.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating expenses.
Assets under management (AUM): The total market value of assets that a fund or investment company manages.
Dividend yield: The annual dividend income paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of a fund’s volatility relative to the overall market, typically the S&P 500.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Portfolio construction: The process of selecting and weighting assets within a fund to achieve specific investment goals.
Concentration: The degree to which a fund’s assets are invested in a small number of holdings or sectors.
Sector tilt: When a fund allocates more assets to certain industries or sectors compared to the broader market.
