VTV vs VUG ETF Comparison: AI Score, Valuation, Performance and Upside
VTV and VUG represent the two ends of the style box — pure value vs pure growth within US large-cap stocks. VTV holds Berkshire, JPMorgan, and energy companies at low valuations. VUG holds Apple, Nvidia, and Microsoft at premium growth valuations. Over the past 15 years, VUG dramatically outperformed VTV as technology and falling rates favored growth. The relative performance of value vs growth is the subject of perennial investment debate.
VTV vs VUG is the value factor ETF holding low-P/E, high-dividend, defensive sector stocks (Berkshire, JPMorgan, Exxon) for valuation discipline and income (Vanguard Value) versus the growth factor ETF holding high-P/E, technology-heavy mega-cap stocks (Apple, Nvidia, Microsoft) for capital appreciation and AI sector exposure (Vanguard Growth) — style factor divergence in US large-cap investing.
VTV holds the edge across 3 of 5 key metrics in this comparison. VTV has delivered stronger 1-year price return (+21.55% vs +12.34% for VUG).
- prefer value factor exposure with defensive sector tilt — financials, healthcare, and energy at lower valuations with higher dividend yields than the broad S&P 500
- value income generation: VTV's higher dividend yield vs VUG and SPY provides regular income distribution for retirees or income-focused portfolios
- want portfolio factor diversification adding value exposure to offset growth-concentrated portfolios — value performs differently in rate cycles
- are comfortable with technology underweighting creating potential growth-cycle underperformance vs VUG during technology bull markets
- prefer growth factor exposure with technology mega-cap concentration — Apple, Microsoft, Nvidia dominating VUG performance in AI-driven bull markets
- value capital appreciation: VUG targets companies reinvesting earnings for growth rather than paying dividends — optimizing for compounding price appreciation
- want maximum AI and technology sector exposure within a broad index framework without needing a pure sector ETF
- are comfortable with premium valuations creating significant drawdown risk in rising rate environments (2022: VUG fell ~35%) and minimal dividend income
| Metric | VTV | VUG |
|---|---|---|
| ETF scorei | 91.0 | 67.0 |
| Latest closei | $221.25 | $88.75 |
| 1M returni | -2.51% | +0.93% |
| 6M returni | +14.93% | +21.21% |
| 1Y returni | +21.55% | +12.34% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VTV | VUG |
|---|---|---|
| 1Y ago | $12.41K (+24.1%) started 2025-09-18 | $11.28K (+12.8%) started 2025-09-18 |
| 5Y ago | $20.81K (+108.1%) started 2021-09-20 | $18.92K (+89.2%) started 2021-09-20 |
| 10Y ago | $43.41K (+334.1%) started 2016-09-19 | $56.4K (+464.0%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | VTV | VUG |
|---|---|---|
| Expense ratioi | 0.03% | 0.03% |
| Total assets (AUM)i | $262.3B | $384.53B |
| Dividend yieldi | 1.82% | 0.38% |
| Trailing P/Ei | 20.06 | 30.24 |
| Betai | 0.77 | 1.24 |
| 52-week change | 21.55% | 12.34% |
| Metric | VTV | VUG |
|---|---|---|
| 1Y returni | +21.55% | +12.34% |
| 6M returni | +14.93% | +21.21% |
| 1M returni | -2.51% | +0.93% |
| 1Y Sharpe ratio | 1.53 | 0.49 |
| Betai | 0.77 | 1.24 |
| Dividend yieldi | 1.82% | 0.38% |
| 5Y CAGR | +12.91% | +13.00% |
Over the past year, VTV and VUG have moved moderately in the same direction (correlation of 0.48), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VTV | VUG |
|---|---|---|---|
| 1Y | Growthi | +21.55% | +12.34% |
| CAGRi | +21.57% | +12.34% | |
| Volatilityi | 10.23% | 17.80% | |
| Sharpe ratioi | 1.53 | 0.49 | |
| Sortino ratioi | 2.31 | 0.71 | |
| Max drawdowni | 6.35% | 16.53% | |
| Current drawdowni | 2.75% | 1.60% | |
| Avg drawdowni | 1.00% | 4.04% | |
| Ulcer Indexi | 1.69% | 5.26% | |
| Max daily dropi | 1.71% | 3.62% | |
| Max wkly dropi | 3.49% | 5.95% | |
| 5Y | Growthi | +83.38% | +84.07% |
| CAGRi | +12.91% | +13.00% | |
| Volatilityi | 13.77% | 22.55% | |
| Sharpe ratioi | 0.63 | 0.46 | |
| Sortino ratioi | 0.90 | 0.65 | |
| Max drawdowni | 17.04% | 35.61% | |
| Current drawdowni | 2.75% | 1.60% | |
| Avg drawdowni | 3.19% | 10.16% | |
| Ulcer Indexi | 4.65% | 14.56% | |
| Max daily dropi | 5.93% | 6.06% | |
| Max wkly dropi | 10.83% | 12.34% | |
| 10Y | Growthi | +229.26% | +420.03% |
| CAGRi | +12.66% | +17.93% | |
| Volatilityi | 16.59% | 21.57% | |
| Sharpe ratioi | 0.53 | 0.67 | |
| Sortino ratioi | 0.74 | 0.94 | |
| Max drawdowni | 36.78% | 35.61% | |
| Current drawdowni | 2.75% | 1.60% | |
| Avg drawdowni | 3.69% | 6.62% | |
| Ulcer Indexi | 5.97% | 11.01% | |
| Max daily dropi | 11.08% | 12.62% | |
| Max wkly dropi | 19.35% | 16.93% |
| Category | VTV | VUG |
|---|---|---|
| Fund name | Vanguard Morningstar Value ETF | Vanguard Morningstar Growth ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.03% |
| Total assets (AUM)i | $262.3B | $384.53B |
| Dividend yieldi | 1.82% | 0.38% |
- Low expense ratio (0.04%): VTV provides value factor exposure at minimal cost — Vanguard's cost advantage makes value factor tilting nearly free
- Defensive sector exposure: financials, healthcare, energy, and consumer staples have lower correlation with pure growth tech momentum — value provides portfolio factor diversification
- Dividend income above S&P 500: value stocks typically pay higher dividends — VTV's yield is above SPY/VOO, making it attractive for income-oriented investors
- Technology mega-cap concentration: VUG is heavily weighted in Apple, Microsoft, Nvidia — the primary beneficiaries of AI and technology secular growth trends
- Growth factor outperformance in tech bull markets: growth indices have significantly outperformed value indices over 2010-2024 driven by technology and declining interest rates
- Same 0.04% expense ratio as VTV: Vanguard provides growth factor exposure at equivalent low cost to value
- Value has underperformed growth dramatically over 2010-2020: the decade of falling rates and tech dominance created significant value factor underperformance vs growth
- Technology underweighting: VTV's value classification excludes most technology mega-caps — investors miss the dominant sector of the past 15 years
- Value 'value trap' risk: some value stocks are cheap for fundamental reasons (business deterioration) rather than undervaluation — value indices can include these traps
- Valuation risk: growth stocks trade at premium P/E multiples — in rising rate environments, high-multiple stocks de-rate significantly (as seen in 2022)
- Less dividend income: growth ETFs like VUG have minimal dividend yield — they return capital through appreciation rather than income
- Concentration in technology mega-caps: VUG's performance is dominated by the top 10 positions — Apple, Microsoft, and Nvidia alone represent 30%+ of VUG
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