VUG vs VOO: Growth Tilt or Broad Market?
VUG is Vanguard's answer to QQQ — a broader large-cap growth basket from the entire US market, not just the Nasdaq. Subtly different from VOOG and QQQ.
VUG tracks the CRSP US Large Cap Growth Index — ~200 stocks with heavy mega-cap tech exposure. Similar outcomes to QQQ but broader (includes non-Nasdaq growth stocks), cheaper (0.04% vs QQQ 0.20%), and less concentrated. Has outperformed VOO by 2-4 percentage points annualized over the last decade.
Quick stats
| Metric | VUG | VOO |
|---|---|---|
| Price | $493.92 | $652.78 |
| TTM yield | 0.40% | 1.09% |
| Real yield (NAV-adj.) | 0.58% | 1.51% |
| NAV change (period) | 44.2% | 38.2% |
| Annualized volatility | 1739.8% | 1327.2% |
| Distribution frequency | quarterly | quarterly |
| Expense ratio | 0.04% | 0.03% |
| Inception | 2004-01-26 | 2010-09-07 |
| AUM | ~$150B | ~$500B |
| 1Y dividend CAGR | 5.1% | 5.4% |
| 3Y dividend CAGR | 10.3% | 5.9% |
| 5Y dividend CAGR | 3.6% | 5.9% |
| 5Y price CAGR | 12.5% | 11.3% |
Strategy & holdings
VUG's index uses six factors to identify growth stocks: future long-term and short-term EPS growth, three-year historical sales growth, investment-to-assets ratio, and return on assets. The result is a ~200-stock large-cap growth basket dominated by mega-cap tech with some non-Nasdaq growth names (Visa, Eli Lilly, Mastercard).
CRSP US Large Cap Growth Index — ~200 large-cap growth stocks identified by multi-factor screen.
S&P 500 — full large-cap market exposure.
VUG sits between VOOG and QQQ in terms of concentration. It's broader than VOOG (~200 vs ~240 holdings but different methodology captures more non-S&P names) and less tech-heavy than QQQ (includes Visa, Eli Lilly, Mastercard which QQQ excludes because they're not on the Nasdaq). The result is growth-factor exposure with a slightly smoother profile than QQQ. Versus VOO, VUG is simply a factor bet: growth will outperform value.
Yield & distributions
VUG yields under 0.6%, VOO 1.2-1.5%. Growth stocks pay less — same story as every other growth-vs-broad comparison.
Total return & NAV
VUG has outperformed VOO by 2-4 percentage points annualized over the last decade. The gap tracks closely with QQQ vs VOO but slightly smaller because VUG is less concentrated in mega-cap tech.
Risk & volatility
VUG has higher volatility and deeper drawdowns than VOO but slightly smoother than QQQ. 2022 saw VUG fall roughly 28% vs VOO's 18% and QQQ's 33%. The broader base of growth stocks (including healthcare and financial services growth names) dampens volatility modestly.
Tax treatment
Both are tax-efficient with Vanguard's share class structure. VUG's lower yield means less taxable income per year in taxable accounts.