Which is better, VOOG or VUG? Both VOOG and VUG are large-cap growth ETFs, which means they invest in large companies that are expected to grow faster than the overall market.
VOOG vs VUG: Fund Overview
There are minor differences between the two funds in terms of their sector weightings, however, there are some key differences between the two funds. For example, VUG has a higher allocation to the technology sector than VOOG.
| Vanguard Funds | S&P 500 Growth Index Fund ETF | Vanguard Growth Index Fund ETF |
|---|---|---|
| 3-year total return | +6.77% | +7.17% |
| 3-year standard deviation | 20.51% | 21.89% |
| Total expense ratio | 0.10% | 0.04% |
| Total net assets | 8.17bn GBP | 94.21bn GBP |
| ISIN | VOOG | VUG |
| Morningstar category | Large Growth | Large Growth |
Holdings: The top holdings of VOOG and VUG are very similar, with companies like Apple, Microsoft, and Amazon making up a large portion of both portfolios.
Fees: VUG has a lower expense ratio than VOOG (0.04% vs. 0.10%). This means an investment in VUG allows you will keep more of your returns over time.
Returns: VUG has slightly outperformed VOOG in terms of total return over the past three years (6.77% vs. 7.17%). But do note that past performance is not a guarantee of future results.
Which One Should You Choose?
Ultimately, the best ETF for you will depend on your individual investment goals and risk tolerance. If you are looking for a low-cost ETF with a good track record, VUG is a good option.
On the other hand, if you are looking for an ETF with more exposure to the technology sector, VOOG may be a better choice. VOOG also provides a bit more risk for potentially higher rewards.
Personal Experience
I personally invest in VUG because of its lower expense ratio and slightly better track record. I also know that VOOG is a great ETF, and I would not be afraid to recommend it to others.
What’s the Fidelity Equivalent of VUG?
There are two Fidelity funds that are similar to Vanguard’s VOOG and VUG.