VUG vs VTI: Side-by-Side ETF Comparison

VUG vs VTI: VTI gives you the entire US stock market at a 0.03% expense ratio with a 1.12% yield, while VUG focuses only on growth stocks - meaning 52.5% tech exposure and a pricier 29.67 P/E ratio. Both delivered nearly identical 14% one-year returns, but VUG's concentration risk versus VTI's broad diversification is the real difference you'll feel during market swings.

Table of Content

• Annual & Cumulative Returns
• Risk Metrics
• Dividend Yield & Growth
• Fees & Liquidity
• ETF Composition: Asset Classes
• Regional Allocation
• Sector Weights
• Top 10 Holdings
• Valuation & Growth Metrics
• Which ETF Fits Your Portfolio?

ETF Issuers & Investment Objective

Both VUG and VTI come from Vanguard's low-cost indexing stable, but they chase different slices of the market. VUG zeroes in on large-cap growth names, which explains why more than half its portfolio sits in technology and why the fund trades at 29.7 times earnings. That growth focus also shows up in the paltry 0.41% yield - these companies prefer to reinvest cash rather than mail checks. VTI, meanwhile, owns the entire U.S. stock market - everything from Apple down to micro-caps traded on regional exchanges - so its 21.5 P/E looks more like the broad market's average and its 1.12% yield reflects the inclusion of dividend-paying value stocks.

The sector weights tell the story: VTI's tech allocation drops to 33% because it has to own banks, utilities, and small-caps too, while VUG's 52.5% tech weighting plus 16.5% in communication services means nearly seven of every ten dollars ride on growth-oriented industries. Both funds cost practically nothing - four basis points for VUG, three for VTI - so the real choice is whether you want pure large-cap growth exposure or a single-fund portfolio that covers the whole U.S. market cap spectrum.

Annual & Cumulative Returns

Growth investing has its moments, and the past decade shows it. VUG's 18.14% annual return over ten years leaves VTI's 15.29% in the dust - that's roughly 2.8 extra percentage points per year, which compounds into real money. The three-year window is even more dramatic, with VUG clocking 28.58% versus VTI's 20.81%. These numbers reflect a period when mega-cap tech names (over half of VUG's portfolio) consistently outran the broader market.

But the picture gets messier up close. VTI actually edged out VUG by 0.08 percentage points over the latest year, and it's ahead year-to-date by about 2.5 points. This back-and-forth illustrates the trade-off: VUG delivers higher long-term returns when growth stocks are in favor, but it also carries more volatility and can lag when market leadership rotates. The 10-year gap of nearly 3% annually is substantial, yet investors need to stomach periods like 2022 when growth stocks cratered. Your choice depends on whether you want the smoother ride of total-market exposure or you're willing to accept VUG's sector concentration for the chance at higher long-term gains.

Risk Metrics

Growth stocks live up to their volatile reputation. VUG’s 16% annual swing is four points higher than VTI’s 11-12%, and the gap stays almost as wide over three years. That extra bump reflects a portfolio stuffed with high-beta tech names; when sentiment shifts, those companies overshoot in both directions. VTI’s broader 4,000-stock basket simply waters down the drama.

What investors get for the ride is a sharper risk-adjusted payoff. VUG’s Sharpe ratio of 1.59 beats VTI’s 1.29, meaning each unit of volatility has translated into about 23% more excess return during the past three years. Whether that trade-off feels worthwhile depends on stomach: holders willing to endure 40% deeper drawdowns have been compensated, while those who prefer to sleep through the night can accept the milder path and still capture most of the market’s reward.

Dividend Yield & Growth

VUG's 0.41% yield reflects its growth focus - the portfolio holds companies that prefer reinvesting cash over paying dividends. A tech-heavy 52.5% allocation naturally produces lower yields since most tech firms prioritize expansion and R&D. VTI's broader market exposure nearly triples this income, delivering 1.12% through quarterly payments that include dividend-paying value stocks and smaller companies.

The difference becomes meaningful at scale. On a $100,000 investment, VTI generates $1,120 annually versus VUG's $410 - a $710 gap that compounds over time. Growth investors accept this trade-off for potentially higher capital appreciation, though both funds delivered similar 14% returns this year. Neither yield is particularly attractive for income-focused strategies, but VTI's modest payments provide some cash flow without sacrificing much growth potential.

Fees & Liquidity

Both ETFs cost practically nothing to own, but VTI edges out VUG by one basis point: you're paying 3¢ versus 4¢ per $100 invested. On a $10,000 position that difference works out to one dollar a year. In real-world terms the gap is meaningless unless you're parking seven-figure sums in the fund, and even then trading spreads will dwarf the expense differential.

What can matter is how easily you can move in and out. VTI trades about 3½ million shares daily, VUG roughly a third of that. The tighter market in VTI keeps bid/ask spreads a penny or two narrower, so if you rebalance often or use large dollar amounts the total cost tilts a hair further toward VTI. For the typical buy-and-hold investor, though, the liquidity of either fund is more than adequate; choose based on the portfolio role you want, not on the microscopic fee gap.

ETF Composition: Asset Classes

VUG keeps things simple: nearly 99.6% of every dollar sits in U.S. common stocks, with only a rounding-error sliver in foreign names or cash. VTI is almost as domestic, yet its 98.8% U.S. weight leaves a touch more room about 0.6% for the ADRs and foreign listings that slip into the total-market basket. Both funds hold a pinch of cash (0.16% vs 0.41%), just enough to handle daily creations and redemptions, so you’re effectively getting full equity exposure with either choice.

What this means on the ground is that currency risk and overseas volatility are virtually non-issues for both portfolios; the difference is rounding, not philosophy. If you already own international ETFs or want a purer large-cap growth bet, VUG’s razor-thin 0.15% non-U.S. stake keeps overlap minimal. VTI’s slightly wider 0.6% foreign sprinkling won’t move the needle, but it does mirror the true composition of the U.S. marketplace, tiny foreign listings and all.

Regional Allocation

Both funds keep their money close to home. VUG parks 100% of its assets in North American stocks, which means every dollar chases U.S. growth companies. VTI is only slightly less domestic; 99.5% sits in North America and the sliver that’s left about 0.5% is scattered across the U.K., developed Europe, developed Asia, and a pinch of emerging markets. That half-percent foreign weight is so small it won’t move the needle; currency swings or overseas earnings surprises barely register.

For investors, this means neither ETF offers built-in international diversification. If you buy VUG you’re making a pure bet on large-cap U.S. growth, while VTI simply widens the bet to include mid-, small-, and micro-cap U.S. names. The geographic overlap is nearly complete, so the real choice is whether you want the sector concentration that comes with VUG’s growth filter or the broader, more balanced market slice that VTI delivers.

Sector Weights

VUG's sector tilt is impossible to miss. Over half the fund sits in technology stocks (52.5%), with communication services adding another 16.5%. That's nearly 70% of your money parked in two sectors. The rest gets thin slices - financial services at just 5.4%, healthcare barely 5.6%, and energy a rounding error at 0.3%.

VTI spreads things around more evenly. Technology still leads at 33.2%, but financial services claims a solid 13.3% and healthcare gets 10.3%. Every sector gets some representation, including utilities at 2.2% and real estate at 2.3% - both absent from VUG's top allocations. This broader mix means VTI won't surge as dramatically when tech rallies, but it won't crater as hard when growth stocks fall out of favor either.

Top 10 Holdings

The concentration gap jumps off the page: VUG’s top five names eat up 45% of the portfolio, while the same stocks claim just 24% of VTI. Put simply, if you buy VUG you’re getting a double-digit slug of NVIDIA (12.7%) and nearly another 12% in Apple weights that push the fund toward a handful of mega-cap growers. VTI still holds those same bellwethers, but at roughly half the dose, leaving far more room for the other 3,700-plus stocks that rarely make headlines.

That skew shows up in the sector mix too. Technology supplies just over half of VUG’s market value, so when sentiment toward big tech sours the whole fund feels it. VTI’s 33% tech weight is nothing to sneeze at, yet the presence of banks, industrials, and tiny caps underneath cushions the blow. In practice, VUG offers a purer bet on the market’s high-flyers, while VTI gives you the same names in moderation and spreads the rest of your money across everything from regional banks to micro-cap manufacturers.

Valuation & Growth Metrics

VUG trades at nearly 30 times earnings versus VTI's more modest 21.5 multiple, and the gap widens further when you look at book value - investors pay 9.6 times book for VUG compared with just 4.1 for the total market fund. These richer valuations reflect VUG's growth focus: the fund has delivered 24% historical earnings growth against VTI's 8.7%, while long-term earnings growth estimates favor VUG at 12.2% versus 10.6%.

The sales growth numbers tell an interesting story. VUG's holdings grew revenue by 12.5% while VTI shows a -39% figure, though this likely reflects the broader fund's inclusion of smaller companies and value stocks that suffered during recent economic turbulence. For investors, this means VUG offers exposure to faster-growing companies at premium prices, while VTI provides market-wide diversification at more reasonable valuations. Choose VUG if you're comfortable paying up for growth, or VTI if you prefer a more balanced approach across all market segments.

Which ETF Fits Your Portfolio?

If you're already tilted toward growth stocks or want to amplify tech exposure, VUG gives you that concentrated bet at a still-cheap 0.04% fee. Just remember you're paying 29.7x earnings and accepting a skinny 0.41% yield, so the ride will feel every bump in sentiment toward the mega-caps that dominate its 52% tech weighting.

For most investors, VTI's 14.1% one-year gain arrived with a milder 21.5x valuation and a 1.1% dividend cushion, all by simply owning the whole U.S. market at a 0.03% expense ratio. Unless you have a strong conviction that large growth will keep outperforming, the broad basket approach of VTI is the easier position to hold through the next cycle.

If you want to have look at other ETF comparisons, check out this: Fund Overlap Tool

Data sources: The data has been obtained from the ETF provider's website and ETF fact sheet.