VUG vs. VOOG: How These Growth-Focused Vanguard ETFs Compare for Investors

Core Insights - The comparison between Vanguard S&P 500 Growth ETF (VOOG) and Vanguard Growth ETF (VUG) highlights differences in cost, sector focus, and performance during market volatility [1][2] Cost and Size - VOOG has an expense ratio of 0.07%, while VUG has a lower expense ratio of 0.04%, making VUG more appealing for cost-conscious investors [3] - As of December 9, 2025, VOOG's one-year return is 19.28% compared to VUG's 16.47% [3] - VOOG has assets under management (AUM) of $21.7 billion, whereas VUG has a significantly larger AUM of $353.0 billion [3] Performance and Risk Comparison - VOOG has a five-year max drawdown of -32.74%, which is less severe than VUG's -35.61%, indicating better performance during market downturns [4] - Both funds have shown similar growth, with $1,000 invested growing to $1,979 in VOOG and $1,984 in VUG over five years [4] - VUG's higher beta of 1.23 suggests it may be more volatile than VOOG, which has a beta of 1.10 [3][4] Portfolio Composition - VUG invests primarily in large U.S. growth companies, with over 53% of its portfolio in technology stocks, while VOOG has 44% in technology [5][6] - VUG holds 160 stocks, while VOOG has a broader diversification with 217 holdings [6] - The top three holdings for both ETFs are Nvidia, Apple, and Microsoft, but they constitute a smaller portion of VOOG's portfolio [6] Implications for Investors - Both ETFs are growth-oriented but differ in their approach, with VOOG focusing on high-growth stocks from the S&P 500, offering a more targeted investment strategy [7] - VUG's heavier allocation to technology may lead to less diversification and increased risk during volatile periods, but it could also yield higher returns when the tech sector performs well [8] - The choice between the two funds may depend on individual risk tolerance, diversification preferences, and desired exposure to the technology sector [10]