# VUG ETF: fees, returns, drawdowns and holdings

> What VUG holds, its 0.03% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard Morningstar Growth ETF (VUG) is an exchange-traded fund (ETF) run by Vanguard. This fund owns shares of large US companies whose earnings are growing, or are expected to grow, faster than average. It charges 0.03% a year. From January 2004 to October 2026 it returned about 12.1% a year, and its worst drop was −50.7%.

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

## Key points

- Expense ratio: 0.03% a year (about $3 on $10,000).
- Started trading on January 26, 2004.
- Worst drop since 2004: −50.7%.
- 1 Tactfolio classic strategy holds it.

## What does VUG hold?

This fund owns shares of large US companies whose earnings are growing, or are expected to grow, faster than average. These are called growth stocks. A few very large technology companies make up a big part of the fund.

It tracks the Morningstar US Large Cap Growth Index. It had 135 holdings as of September 30, 2026, according to Vanguard.

| Fact | VUG |
| --- | --- |
| Full name | Vanguard Morningstar Growth ETF |
| Issuer | Vanguard |
| Expense ratio | 0.03% a year |
| Started trading | January 26, 2004 |
| Tracks | Morningstar US Large Cap Growth Index |
| Type | US stocks, ETF |
| Holdings | 135 holdings as of September 30, 2026 |
| Facts checked | October 16, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vug) |

## What is the VUG expense ratio?

VUG charges 0.03% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.03% fee comes to about $3 a year.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## How has VUG done since 2004?

From January 2004 to October 2026, VUG returned about 12.1% a year. Say you put in $10,000 at the start. It would have been worth about $134,384 at the end, with every dividend reinvested.

| Measure | VUG |
| --- | --- |
| Total return | 1,244% |
| Return per year (CAGR) | 12.1% |
| Worst drop from a high | −50.7% |
| Volatility (how much it swings) | 20.0% |
| Last 12 months | 11.3% |
| Last 3 years, per year | 23.9% |
| Last 5 years, per year | 12.4% |
| Last 10 years, per year | 17.9% |

Prices through October 16, 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.

## VUG returns by year

| Year | VUG return |
| --- | --- |
| 2026 (part of the year) | 8.5% |
| 2025 | 19.4% |
| 2024 | 32.7% |
| 2023 | 46.8% |
| 2022 | −33.2% |
| 2021 | 27.4% |
| 2020 | 40.3% |
| 2019 | 37.0% |
| 2018 | −3.3% |
| 2017 | 27.7% |
| 2016 | 6.3% |
| 2015 | 3.2% |
| 2014 | 13.6% |
| 2013 | 32.5% |
| 2012 | 17.0% |
| 2011 | 1.8% |
| 2010 | 17.2% |
| 2009 | 36.1% |
| 2008 | −38.0% |
| 2007 | 12.5% |
| 2006 | 9.2% |
| 2005 | 5.0% |
| 2004 (part of the year) | 5.0% |

## What was VUG's worst drop?

A drawdown is how far a fund falls from its last high point. 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.

The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## Which Tactfolio strategies hold VUG?

One classic strategy holds VUG 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

## How does VUG compare with similar ETFs?

Side-by-side pages measure both funds over the same dates:

- [VOO vs VUG](https://tactfolio.com/etf-comparisons/voo-vs-vug.md): the S&P 500 against large US growth companies.

Funds that can stand in for VUG:

- [SCHG](https://tactfolio.com/etf/schg.md): Schwab U.S. Large-Cap Growth ETF, 0.04% a year
- [SPYG](https://tactfolio.com/etf/spyg.md): State Street SPDR Portfolio S&P 500 Growth ETF, 0.04% a year
- [MGK](https://tactfolio.com/etf/mgk.md): Vanguard Morningstar Mega Cap Growth ETF, 0.05% a year
- [VONG](https://tactfolio.com/etf/vong.md): Vanguard Russell 1000 Growth ETF, 0.06% a year

See [all 8 VUG alternatives](https://tactfolio.com/alternatives/vug.md), compared on the same dates as VUG.

## Test VUG in your own rules

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add VUG, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for VUG. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns.

Fund facts come from Vanguard. We checked them on October 16, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.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

### What is the expense ratio of VUG?

VUG charges 0.03% a year, according to Vanguard as of October 16, 2026. That is about $3 a year for every $10,000 you hold.

### When did VUG start trading?

VUG started trading on January 26, 2004. It is run by Vanguard.

### What does VUG track?

VUG tracks the Morningstar US Large Cap Growth Index. This fund owns shares of large US companies whose earnings are growing, or are expected to grow, faster than average.

### How much has VUG returned per year?

From January 2004 to October 2026, VUG returned about 12.1% a year with dividends reinvested. Its worst drop was −50.7%. Past returns do not tell you what it will do next.

### Which strategies use VUG?

One of Tactfolio's classic strategies hold VUG, including Papa Bear Portfolio (Muscular Portfolios).

## Sources

- [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.