VOOG vs. VUG: Vanguard Growth ETF vs S&P 500 Growth Index

Someone asks:

I’m debating between VOOG (Vanguard SP500 Growth Index) and VUG (Vanguard Growth ETF). Both are great funds, and their top holdings seem pretty similar, with great returns. Which one should I pick?

VOOG vs VUG: Fund Overview

Funds Vanguard Growth Index Fund ETF Shares Vanguard S&P 500 Growth Index Fund ETF Shares
Price 254.17 246.20
3-year total return +23.16% +21.68%
3-year standard deviation 19.70% 18.80%
Net expense ratio 0.04% 0.10%
Total net assets 79.06bn USD 7.27bn USD
Morningstar category Large Growth Large Growth

Which is Better, VOOG or VUG?

Community Answers:

Sean M:

VOOG is an ETF that tracks the S&P 500 Growth Index, which means it invests in companies that are part of the S&P 500 market index but have also been classified as “growth” stocks (281 stocks have currently been classified as growth according to this ETF).

In my view, it all comes down to how you want to take your risk. With a fund like VOOG, you’re not only taking on market risk (which is ever-present in stock investments), but you’re also adding in style risk.

Whether the risk-reward payoff amounts too much over your investment lifetime, no one can tell you. But most here, I suspect, will opt for a broad-market fund like VTSAX (for U.S. stocks, at least) and limit themselves to market risk. As we’ve seen with all the market volatility this year, this alone can be pretty significant.

Vicky F:

VUG has lower fees, higher returns, and very similar holdings.

Seann H:

Past performance is not a good predictor of future returns relative to the market. Of course, if you invest in a total stock market index fund, your returns should match the market.

Buying into VUG (Vanguard large-cap growth) is a portion of the total stock market that has done well since around 2012 and even better starting March 2020. Some believe large-cap value is overvalued, while others believe large-cap value is the only game in town. One day we’ll learn which group is right.

What’s the Fidelity Equivalent of VUG?

There are two Fidelity funds that are similar to Vanguard’s VOOG and VUG.