ETF Versus

VUG vs VWO

Vanguard Growth Index Fund ETF Shares vs Vanguard Emerging Markets Stock Index Fund

Last updated: 2026-04-02

VUG Vanguard

Vanguard Growth Index Fund ETF Shares (VUG) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a very low expense ratio of 0.03%. The fund offers a modest dividend yield of 0.45%. Launched in 2004, the fund has a 22-year track record.

AUM: $179.8B ER: 0.03% Yield: 0.45% Since: Jan 26, 2004
VWO Vanguard

Vanguard Emerging Markets Stock Index Fund (VWO) is an exchange-traded fund issued by Vanguard that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 2.76%. Launched in 2005, the fund has a 21-year track record.

AUM: $107.3B ER: 0.06% Yield: 2.76% Since: Mar 4, 2005

Quick Verdict

VUG has a slightly lower expense ratio (0.03% vs 0.06%), saving about $60 per $10,000 over 10 years. VWO has edged ahead over the past year (19.4% vs 18.0%). Income investors may prefer VWO for its higher yield (2.8% vs 0.5%).

Key Metrics

Metric VUG VWO
Expense Ratio 0.03% 0.06%
Dividend Yield 0.5% 2.8%
Fund Family Vanguard Vanguard
Category US Large Cap Growth Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

65 90 115 140 165 190 2021-04 2022-06 2023-09 2024-12 2026-04
VUG +66.0%
VWO +3.0%

Performance Comparison

Period VUG VWO Difference
1 Month -4.47% -5.29% +0.82%
3 Months -9.18% -1.31% -7.87%
6 Months -8.28% -1.06% -7.22%
YTD -9.18% -1.31% -7.87%
1 Year +18.01% +19.38% -1.37%
3 Years +77.18% +33.62% +43.56%
5 Years +66.01% +3.00% +63.01%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VUG Fees VWO Fees You Save
$10.000 10 years $60 $120 $60
$10.000 20 years $258 $515 $257
$10.000 30 years $835 $1.664 $828
$50.000 10 years $299 $598 $299
$50.000 30 years $4.176 $8.318 $4.142
$100.000 30 years $8.352 $16.637 $8.285

Risk Metrics

Based on 5 years of daily returns

Metric VUG VWO
Annualized Volatility 22.2% 17.3%
Max Drawdown -36.0% -35.9%
Sharpe Ratio 0.37 -0.14

Dividend Comparison

Metric VUG VWO
Annual Dividend (per share) $1.99 $1.45
Dividend Yield 0.45% 2.68%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 8 holdings overlap (0% overlap in top holdings)

VUG Top Holdings

NameWeight
NVIDIA CorporationNVDA12.82%
Apple Inc.AAPL12.23%
Microsoft CorporationMSFT9.15%
Alphabet Inc.GOOG4.49%
Meta Platforms, Inc.META4.44%
Amazon.com, Inc.AMZN4.41%
Broadcom Inc.AVGO3.95%
Tesla, Inc.TSLA3.58%
Eli Lilly and CompanyLLY2.82%

VWO Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233012.71%
Tencent Holdings Limited!hkg/07003.44%
Alibaba Group Holding Limited!hkg/99882.74%
HDFC Bank Limited!nse/HDFCBANK0.93%
Reliance Industries Limited!nse/RELIANCE0.88%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.78%
MediaTek Inc.!tpe/24540.76%
China Construction Bank Corporation!hkg/09390.75%

Which One Should You Choose?

Choose VUG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VWO if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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