Two nearly identical Vanguard growth ETFs are posting returns that differ by five full percentage points this year, and the cheaper one is losing. The reason has nothing to do with fees.
The Vanguard Growth ETF (NYSEARCA:VUG) is known for its ultra-low fee.
On July 29, 2026, Vanguard swapped the benchmark behind the Vanguard Growth ETF (NYSEARCA:VUG) from the CRSP US Large Cap Growth Index to the Morningstar US Large Cap Growth Index.
If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Growth Index Fund ETF Shares (VUG), a passively managed exchange traded fund launched on January 26, 2004.
Pick between the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) and the Vanguard Growth ETF (NYSEARCA:VUG), and you are choosing between twins raised in different houses.
This ETF's low expense ratio of 0.03% allows investors to keep more of their returns over time. In the past decade, the Vanguard Growth ETF produced a stellar total return of 411%.
The Vanguard Growth ETF (NYSEARCA:VUG) trades near $86 after a brutal five-day stretch that lopped 4.5% off the price.
The pitch for Vanguard Growth ETF (NYSEARCA:VUG) sits at the cheap end of a long-running debate about whether active stock pickers can beat an index dominated by mega-cap growth names.
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Growth Index Fund ETF Shares (VUG) is a passively managed exchange traded fund launched on January 26, 2004.
The Vanguard Value ETF (NYSEARCA:VTV | VTV Price Prediction) is up 11% year to date, a lead that only looks small next to the 9.4% return on the Vanguard Growth ETF (NYSEARCA:VUG) over the same stretch.
Over the past decade, Vanguard Growth ETF (NYSEARCA:VUG | VUG Price Prediction) returned 427% while Invesco QQQ Trust (NASDAQ:QQQ) delivered 563%.
Launched on January 26, 2004, the Vanguard Growth Index Fund ETF Shares (VUG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.