# VTV vs VUG: fees, holdings and returns compared

> VTV vs VUG: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

VTV holds about 300 large US companies that look cheap compared with their earnings or sales, called value stocks. VUG holds about 135 large US companies with fast-growing earnings, called growth stocks. Together they cover most large US companies, with little overlap. Over the same dates since January 2004, VTV returned about 9.7% a year and VUG returned about 12.2% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 20, 2026.

## Key points

- Both charge 0.03% a year.
- VTV started trading in January 2004. VUG started in January 2004.
- Worst drops since 2004: VTV −59.3%, VUG −50.7%.
- Daily correlation: 0.84 (1 means they always move together).

## What is the difference between VTV and VUG?

Morningstar sorts large US companies into value and growth, and each fund takes one side. VUG is heavy in a few large technology companies. VTV is spread across banks, health care, energy, industrials and consumer goods. Growth led for most of the 2010s. Value did better in some other stretches, such as 2022. Their fees are the same, so the choice is about what each owns.

| Fact | VTV | VUG |
| --- | --- | --- |
| Full name | Vanguard Morningstar Value ETF | Vanguard Morningstar Growth ETF |
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.03% a year | 0.03% a year |
| Started trading | January 26, 2004 | January 26, 2004 |
| Tracks | Morningstar US Large Cap Value Index | Morningstar US Large Cap Growth Index |
| Holdings | 298 holdings as of September 30, 2026 | 135 holdings as of September 30, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Vanguard VTV page](https://investor.vanguard.com/investment-products/etfs/profile/vtv) and the [Vanguard VUG page](https://investor.vanguard.com/investment-products/etfs/profile/vug).

## Is VTV or VUG cheaper?

Both charge 0.03% a year. On $10,000, that is about $3 a year for VTV and $3 for VUG. The fund takes its fee out of its own value a little each day, so you never get a bill.

## VTV vs VUG performance over the same dates

Both funds are measured from January 2004 to October 2026, the dates both traded. VTV returned about 9.7% a year and VUG returned about 12.2% a year. VUG came out ahead over this period, which does not mean it will again.

| Measure | VTV | VUG |
| --- | --- | --- |
| $10,000 grew to | $82,169 | $135,515 |
| Total return | 721.7% | 1,255% |
| Return per year (CAGR) | 9.7% | 12.2% |
| Worst drop from a high | −59.3% | −50.7% |
| Volatility (how much it swings) | 18.4% | 20.0% |
| Last 12 months | 22.5% | 10.2% |
| Last 3 years, per year | 21.2% | 26.0% |
| Last 5 years, per year | 12.0% | 12.3% |
| Last 10 years, per year | 12.8% | 17.9% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## VTV and VUG returns by year

| Year | VTV | VUG |
| --- | --- | --- |
| 2026 (part of the year) | 19.3% | 9.4% |
| 2025 | 15.3% | 19.4% |
| 2024 | 16.0% | 32.7% |
| 2023 | 9.3% | 46.8% |
| 2022 | −2.1% | −33.2% |
| 2021 | 26.5% | 27.4% |
| 2020 | 2.3% | 40.3% |
| 2019 | 25.7% | 37.0% |
| 2018 | −5.5% | −3.3% |
| 2017 | 17.1% | 27.7% |
| 2016 | 17.1% | 6.3% |
| 2015 | −1.0% | 3.2% |
| 2014 | 13.2% | 13.6% |
| 2013 | 33.1% | 32.5% |
| 2012 | 15.2% | 17.0% |
| 2011 | 1.1% | 1.8% |
| 2010 | 14.5% | 17.2% |
| 2009 | 19.9% | 36.1% |
| 2008 | −35.9% | −38.0% |
| 2007 | −0.1% | 12.5% |
| 2006 | 22.4% | 9.2% |
| 2005 | 7.2% | 5.0% |
| 2004 (part of the year) | 13.9% | 5.0% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. VTV's worst fall was −59.3%, from July 13, 2007 to March 5, 2009. It got back to that high on February 1, 2013.

VUG's worst fall was −50.7%, from October 31, 2007 to March 9, 2009. It got back to that high on February 8, 2011.

Their daily moves had a correlation of 0.84. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So they often move together, but not always.

## Why people choose VTV or VUG

**VTV.** People who want large companies that look cheap on their profits, and less in tech, tend to pick VTV.

**VUG.** People who want large companies with fast-growing earnings, and accept bigger swings, tend to pick VUG.

## Strategies that hold VTV or VUG

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds VTV and VUG)

## Other funds like VTV and VUG

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [VTV alternatives](https://tactfolio.com/alternatives/VTV.md) and [VUG alternatives](https://tactfolio.com/alternatives/VUG.md).

## Test a mix of VTV and VUG

Open the [builder](https://tactfolio.com/builder), add VTV and VUG, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [VTV](https://tactfolio.com/etf/VTV.md) and [VUG](https://tactfolio.com/etf/VUG.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Do VTV and VUG overlap?

Very little. Morningstar puts each large company on the value side, the growth side or in between, and the two funds draw from opposite sides.

### Is value or growth better?

Neither has always won. Growth stocks led for much of the 2010s and value stocks led in other periods. The yearly returns above show how the two have traded places.

### Which is cheaper, VTV or VUG?

Both charge 0.03% a year. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, VTV or VUG?

From January 2004 to October 2026, VTV returned about 9.7% a year and VUG returned about 12.2% a year, with dividends reinvested. Their worst drops were −59.3% and −50.7%. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Morningstar Value ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vtv)
- [Vanguard: Vanguard Morningstar Growth ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vug)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.