As a financial blogger, I get asked this question a lot: “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.
However, there are some key differences between the two funds.
|Funds||Vanguard S&P 500 Growth Index Fund ETF Shares||Vanguard Growth Index Fund ETF Shares|
|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|
|Morningstar category||Large Growth||Large Growth|
Fees: VUG has a lower expense ratio than VOOG (0.04% vs. 0.10%). This means you will keep more of your returns over time if you invest in VUG.
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.
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.
There are some minor differences between the two funds in terms of their sector weightings. For example, VUG has a higher allocation to the technology sector than VOOG.
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.
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.
There are two Fidelity funds that are similar to Vanguard’s VOOG and VUG.