Dividend comparison

VIG vs VUG: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Dividend Appreciation ETF and Vanguard Morningstar Growth ETF, side by side. Updated October 21, 2026.

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VIG vs VUG: key differences
The short answer, from the latest data on this page.
  • Fees. VUG is cheaper at 0.03% a year versus 0.04% for VIG. On $10,000 that is $1 a year less in fees.
  • Income. VIG pays more income, yielding 1.50% over the last twelve months versus 0.39% for VUG. That is about $111 more a year on $10,000. Both pay quarterly.
  • Performance. Over the last 5 years, VUG returned 78.4% versus 61.4% for VIG, with dividends reinvested. $10,000 would have grown to $17,845 in VUG and $16,136 in VIG.
  • Risk. VUG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.6%, against -20.4% for VIG.
  • Diversification. VIG holds 338 positions and VUG holds 166. The ten largest positions make up 34.9% of VIG and 63.1% of VUG.
  • Overlap. 26% of the two portfolios overlap by weight, across 24 shared holdings.
  • Dividend growth. VIG grew its yearly payout 7.5% a year over the last 4 years, versus 6.9% for VUG.
  • Size. VUG is the larger fund with $392.2 billion in assets, against $127.7 billion for VIG.

Bottom line: VIG fits better if you care most about more income today, smaller drawdowns and broader diversification. VUG fits better if you care most about stronger 5-year returns.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricVIG
Vanguard Dividend Appreciation ETF
VUG
Vanguard Morningstar Growth ETF
Dividend yield (TTM)1.50%0.39%
Dividend / share (TTM)$3.65$0.35
Payout frequencyQuarterlyQuarterly
Last dividend$0.9295 on Sep 30, 2026$0.0910 on Sep 30, 2026
Ex-dividend dateSep 28, 2026Sep 28, 2026
Dividend growth (CAGR)7.5% over 4 yrs6.9% over 4 yrs
Price$243.07$88.67
Dividend growth streak12 years3 years
Beta0.821.27
Max drawdown (5Y)-20.4%-35.6%
Market cap$127.69B$392.24B
ExchangeAMEXAMEX
Expense ratio0.04%0.03%
Assets under management$127.70B$392.20B
Number of holdings338166
Top 10 concentration34.9%63.1%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

VIG

$12.50/mo

$150 /yr at 1.50% yield

VUG

$3.25/mo

$39 /yr at 0.39% yield

Dividend history
Total dividends paid per share in each calendar year. VIG pays quarterly; VUG pays quarterly.
YearVIGVUG
2025$3.5580$0.3351
2024$3.3791$0.3188
2023$3.2081$0.3003
2022$2.9725$0.2499
2021$2.6601$0.2567
Strategy: Large-cap growth
Funds that hold the faster-growing half of the large-cap market, selected by measures like earnings growth, sales growth and price momentum. In practice that means heavy weights in technology and communication companies, with the largest few names often making up a third of the fund or more. Dividends are small because growth companies reinvest their cash instead of paying it out.

Concentration in a handful of mega-cap stocks makes these funds swing harder than the broad market in both directions, and they offer little current income.

What VIG vs VUG actually do

VIG
A fund holding US companies with at least ten consecutive years of dividend increases, deliberately excluding the highest yielders.

It tracks the S&P U.S. Dividend Growers Index, which requires a decade of unbroken annual increases and then removes the top 25% of eligible names by yield. Screening out the highest payers is intentional: an unusually high yield often signals a stretched payout or a falling share price, and the index is built for durability rather than for current income. The result is a lower starting yield than most dividend funds and a portfolio that leans toward large, stable, profitable companies.

Suits a long-horizon investor who cares more about the dividend rising every year than about the size of the first payment. Not appropriate if you need meaningful cash flow from the position today.

Dividend growth, quality tilt

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $16,136 in VIG and $17,845 in VUG.
PeriodVIGVUG
1 month2.56%0.01%
3 months2.30%4.01%
Year to date10.60%9.40%
1 year11.88%10.23%
3 years64.31%99.93%
5 years61.36%78.45%
  • VIG
  • VUG
61127193202120222023202420252026161178

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • VIG
  • VUG
0%15%30%45%60%Technology27.4%60.2%Financial Services20.7%3.9%Healthcare18.7%4.2%Communication Services0.5%14.7%Industrials10.8%4.4%Consumer Cyclical3.9%9.8%Consumer Defensive9.1%1.3%Energy3.6%0.3%Basic Materials3.2%0.4%Utilities2.7%0.8%Other0.0%0.9%
VIG vs VUG holdings overlap
26% overlap by weight, with 24 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsVIG weightVUG weight
MSFTMicrosoft Corp4.90%9.74%
AAPLApple Inc4.89%12.50%
AVGOBroadcom Inc4.30%4.34%
LLYEli Lilly & Co4.10%2.60%
VVisa Inc2.53%1.59%
MAMastercard Inc1.97%1.16%
LRCXLam Research Corp1.82%1.11%
COSTCostco Wholesale Corp1.79%1.09%
KLACKLA Corp1.13%0.70%
ORCLOracle Corp1.05%0.65%
Top 10 holdings
Largest positions by portfolio weight.

VIG338 holdings total

NameWeight
MSFTMicrosoft Corp4.90%
AAPLApple Inc4.89%
AVGOBroadcom Inc4.30%
LLYEli Lilly & Co4.10%
JPMJPMorgan Chase & Co3.89%
XOMExxonMobil Holdings Corp2.96%
JNJJohnson & Johnson2.83%
VVisa Inc2.53%
7DZ.DEExxonMobil Holdings Corp2.46%
WMTWalmart Inc2.05%

VUG166 holdings total

NameWeight
NVDANVIDIA Corp13.48%
AAPLApple Inc12.50%
MSFTMicrosoft Corp9.74%
GOOGLAlphabet Inc5.16%
AVGOBroadcom Inc4.34%
AMZNAmazon.com Inc4.26%
METAMeta Platforms Inc4.23%
GOOGAlphabet Inc4.09%
AMDAdvanced Micro Devices Inc2.66%
TSLATesla Inc2.65%

Quick verdict

VIG fits better if you care most about more income today, smaller drawdowns and broader diversification. VUG fits better if you care most about stronger 5-year returns. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is VIG or VUG better for dividend income?
It depends on your goals. VIG currently yields 1.50% Trailing Twelve Months (TTM) while VUG yields 0.39%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VIG and VUG?
Vanguard Dividend Appreciation ETF (VIG) is an ETF listed on AMEX. Vanguard Morningstar Growth ETF (VUG) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VIG or VUG?
VUG has the lower expense ratio. VIG charges 0.04% a year and VUG charges 0.03%, a difference of $1 a year on a $10,000 investment.
Which has performed better, VIG or VUG?
Over the last 5 years, VUG has the higher total return with dividends reinvested: VIG returned 61.4% and VUG returned 78.4%. Past performance does not predict future returns.
Which is riskier, VIG or VUG?
Measured by the worst peak-to-trough decline over the last five years, VUG has been riskier: VIG fell as much as 20.4% and VUG as much as 35.6%. Their betas are 0.82 and 1.27.
How much do VIG and VUG overlap?
About 26% of the two portfolios overlap by weight, across 24 shared holdings. The largest shared positions are MSFT, AAPL, AVGO. Holding both still adds meaningful diversification.
How often do VIG and VUG pay dividends?
Both pay quarterly. The most recent payments were $0.9295 for VIG and $0.0910 for VUG.
How much income does $10,000 in VIG vs VUG generate?
At current TTM yields, $10,000 in VIG would generate roughly $12.50 per month ($150 annually). The same amount in VUG would produce about $3.25 per month ($39 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VIG and VUG?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VIG vs VUG with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VIG and VUG fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.