# How Vanguard Morningstar Growth ETF (VUG) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vug
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VUG alone. It places VUG (Vanguard Morningstar Growth ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VUG stands in the market, and of the alternatives worth a closer look.

Period covered: VUG's full trading record, from January 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** 58% of VUG sits in technology, against 38% for the S&P 500.
- **Right now:** VUG has bounced back 24.0% from its April 2025 low after a 22.8% loss from February 2025 to April 2025 after falling while the S&P 500 fell 18.8%. VUG sits 4.3% below its record high, and the S&P 500 is similarly close to its own.
- **Fund or market?:** VUG rose 4.0% over the past 3 months, in line with the US large-cap growth ETF QQQ (Invesco QQQ Trust, Series 1), which rose 3.2%. The S&P 500 rose 3.9%.
- **Long term:** VUG turned $10,000 into $51,900 over the past decade, against $42,100 in the S&P 500. On the flip side, over 5 years VUG trailed the index: 78.6% against 81.7%.
- **In a crash:** The 2022 bear market took 33.7% off VUG, against 24.5% for the S&P 500. That was more than IWF (iShares Russell 1000 Growth ETF, 31.2%) but less than FBCG (Fidelity Blue Chip Growth ETF, 38.8%). VUG fell further than the S&P 500 in three of the last four sell-offs, including the 2022 bear market (33.7% against 24.5%).
- **Diversification:** Against the S&P 500, VUG has a correlation of 0.94 over 5 years, more closely than 89% of ETFs with at least $100 million in assets. Next to an index fund it is more of the same, not a cushion. When the S&P 500 had a down month, VUG usually fell with it (18 of 22 months).
- **Better options**
  - **Popular alternatives:** IUS (Invesco RAFI Strategic US ETF) earned more than VUG with less volatility over the past 5 years: 14.7% a year at 14.9% volatility, against 12.3% a year at 22.5%.
  - **Nearby categories and themes:** VLUE (iShares MSCI USA Value Factor ETF, US large-cap value) and AVLV (Avantis U.S. Large Cap Value ETF, US large-cap value) earned more than VUG with less volatility over the past 5 years. VLUE returned 15.9% a year at 18.4% volatility, against 12.3% a year at 22.5%.
  - **Versus the S&P 500:** The S&P 500 matched VUG's return over the past 5 years (12.7% a year against 12.3%) with 24% less volatility.

## How much would $10,000 in VUG have grown?

This chart tracks a hypothetical $10,000 investment in VUG over the past 22 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VUG over the same span and VUG's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VUG at the end of September 2004 would have grown to $143,718 by September 2026, more than the $102,174 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VUG, and QQQ finished highest, at $249,744.

## VUG at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VUG's deepest decline since it began trading in 2004 was 50.7%, from October 2007 to March 2009. It took 23 months from the low to climb back to its old high.
- Over 21 full calendar years, VUG's best was 2023, when it returned 46.8%, and its worst was 2008, when it lost 38.0%. It lost money in three of those years.
- VUG is 4.3% below its all-time high.

- Type: ETF, Broad Market (Asset Management)
- Trading since: January 30, 2004
- Assets: $392B
- Expense ratio: 0.03%
- Volatility (5 years): 22.5%; Sharpe ratio: 0.63
- Worst decline ever: −50.7%, from October 31, 2007 to March 9, 2009; back at its high by February 7, 2011

| Period | VUG total return |
| --- | --- |
| 1 month | −2.5% |
| 3 months | +4.0% |
| 6 months | +8.2% |
| year to date | +9.8% |
| 1 year | +10.2% |
| 3 years | +100% |
| 5 years | +78.6% |
| 10 years | +419% |

## VUG against the whole market

Where VUG ranks among every stock and fund, and what across the market has done better.

### How does VUG rank among all ETFs?

This section ranks VUG on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VUG's 10-year return ranks in the top 4% of the 958 ETFs with at least $100 million in assets with 10 years of history.
- VUG is among the more volatile ETFs: its price swings rank in the bottom 18% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.

| Measure | VUG | Rank |
| --- | --- | --- |
| 1-year return | +10.2% | 1,245 of 2,485 (top 51%) |
| 3-year return | +100% | 227 of 1,949 (top 12%) |
| 5-year return | +78.6% | 273 of 1,560 (top 18%) |
| 10-year return | +419% | 34 of 958 (top 4%) |
| Volatility, 5 years | 22.5% | 1,287 of 1,560 (top 83%) |
| Sharpe ratio, 5 years | 0.63 | 661 of 1,560 (top 43%) |
| Worst decline, past 10 years | −35.6% | 372 of 951 (top 40%) |

### What has beaten VUG on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 17 stocks and 74 ETFs worth at least $500 million sit in the green region: each earned more than VUG over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half VUG's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 15% less than VUG's 22.5%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.63 for VUG.
- Among VUG's popular alternatives, IUS is in the region. IUS earned 14.7% a year against 12.3% a year for VUG, at 14.9% volatility, 34% less than VUG's 22.5%.

### Is there a better investment than VUG?

The table below lists investments that beat VUG over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VUG's popular alternatives, IUS earned more than VUG with less volatility over the past 5 years: 14.7% a year at 14.9% volatility, against 12.3% a year at 22.5%.
- Looking beyond its popular alternatives, VLUE (US large-cap value) and AVLV (US large-cap value) earned more than VUG with less volatility over the past 5 years. VLUE returned 15.9% a year at 18.4% volatility, against 12.3% a year at 22.5%.
- The S&P 500 matched VUG's return over the past 5 years (12.7% a year against 12.3%) with 24% less volatility.

The 15 strongest of 91 investments that beat VUG over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VUG | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VUG: Vanguard Morningstar Growth ETF (this page) |  | +12.3% | 22.5% | 0.63 | −35.6% | +419% |  |  |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.45 | Higher return, lower volatility; Higher return in most periods |
| [MPLX](https://easycompare.io/research/mplx): MPLX Lp | Oil & Gas Midstream | +23.5% | 18.8% | 1.22 | −75.2% | +350% | 0.28 | Higher return, lower volatility; Higher return in most periods |
| DXJ: WisdomTree Japan Hedged Equity Fund | International Equity | +26.6% | 19.1% | 1.34 | −39.1% | +428% | 0.45 | Higher return, lower volatility; Higher return in most periods |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [TD](https://easycompare.io/research/td): The Toronto-Dominion Bank | Banks | +15.8% | 20.0% | 0.84 | −42.0% | +310% | 0.40 | Higher return, lower volatility; Higher return in most periods |
| [MO](https://easycompare.io/research/mo): Altria Group, Inc. | Tobacco | +17.8% | 21.4% | 0.88 | −53.7% | +140% | 0.09 | Higher return, lower volatility; Higher return in most periods |
| [RSG](https://easycompare.io/research/rsg): Republic Services, Inc. | Environmental Services | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.24 | Higher return, lower volatility; Higher return in most periods |
| [NVS](https://easycompare.io/research/nvs): Novartis AG | Pharmaceuticals | +17.1% | 20.7% | 0.87 | −26.8% | +226% | 0.13 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [DYNF](https://easycompare.io/research/dynf): iShares U.S. Equity Factor Rotation Active ETF | US Multifactor Equity | +14.7% | 17.5% | 0.87 | −34.7% | — | 0.95 | Higher return, lower volatility; Higher return in most periods |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.09 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| SPMO: Invesco S&P 500 Momentum ETF | US Momentum Equity | +18.7% | 20.8% | 0.93 | −30.9% | +499% | 0.78 | Higher return, lower volatility; Higher return in most periods |
| AVDV: Avantis International Small Cap Value ETF | International Equity | +13.9% | 17.4% | 0.84 | −43.0% | — | 0.55 | Higher return, lower volatility; Higher return in most periods |
| IOO: iShares Global 100 ETF | Global Equity | +15.7% | 17.2% | 0.94 | −31.4% | +361% | 0.92 | Higher return, lower volatility; Higher return in most periods |
| DFIV: Dimensional - International Value ETF | International Equity | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.45 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| TDIV: First Trust NASDAQ Technology Dividend Index Fund | Technology Equity | +16.2% | 21.3% | 0.81 | −32.0% | +388% | 0.88 | Higher return, lower volatility; Higher return in most periods |

## VUG against its popular alternatives

The investments people most often weigh against VUG, compared period by period and year by year.

### How do VUG's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Five of the 15 popular alternatives, led by IUS, SPYG and SCHG, were both more rewarding and calmer than VUG over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VUG returned 12.3% a year, less than the S&P 500's 12.7%, with higher volatility (22.5% against 17.1%).

### Has VUG consistently beaten its popular alternatives?

This section compares VUG with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Seven of the 22 popular alternatives, led by MGK, QQQ and SPYG, outperformed VUG in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- MGK outperformed VUG in every long-term period and in all but one short-term period, the most consistent record in the group.
- IUS, SPY and QQQM earned more for the risk they took than VUG (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VUG | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VUG: Vanguard Morningstar Growth ETF (this page) | +10.2% | +100% | +78.6% | +419% |  |  | 0.63 |
| MGK: Vanguard Morningstar Mega Cap Growth ETF | +11.9% | +104% | +88.2% | +464% | 4/5 short-term, 3/3 long-term | all-weather | 0.67 |
| [QQQ](https://easycompare.io/research/qqq): Invesco QQQ Trust, Series 1 | +17.9% | +106% | +97.2% | +553% | 3/5 short-term, 3/3 long-term | consistent | 0.71 |
| [SPYG](https://easycompare.io/research/spyg): State Street SPDR Portfolio S&P 500 Growth ETF | +15.8% | +110% | +86.5% | +418% | 3/5 short-term, 2/3 long-term | consistent | 0.69 |
| VOOG: Vanguard S&P 500 Growth ETF | +15.8% | +110% | +86.0% | +416% | 3/5 short-term, 2/3 long-term | consistent | 0.69 |
| [IVW](https://easycompare.io/research/ivw): iShares S&P 500 Growth ETF | +15.7% | +109% | +85.3% | +413% | 3/5 short-term, 2/3 long-term | consistent | 0.68 |
| IUSG: iShares Core S&P U.S. Growth ETF | +15.9% | +107% | +83.7% | +405% | 3/5 short-term, 2/3 long-term | consistent | 0.68 |
| [QQQM](https://easycompare.io/research/qqqm): Invesco NASDAQ 100 ETF | +18.0% | +106% | +98.0% | — | 3/5 short-term, 2/3 long-term | consistent | 0.71 |
| [SCHG](https://easycompare.io/research/schg): Schwab U.S. Large-Cap Growth ETF | +10.4% | +99.2% | +85.4% | +451% | 2/5 short-term, 2/3 long-term |  | 0.67 |
| IWY: iShares Russell Top 200 Growth ETF | +4.7% | +90.1% | +83.8% | +466% | 0/5 short-term, 2/3 long-term |  | 0.67 |
| IUS: Invesco RAFI Strategic US ETF | +28.8% | +88.7% | +98.2% | — | 5/5 short-term, 1/3 long-term |  | 1.00 |
| [SPY](https://easycompare.io/research/spy): State Street SPDR S&P 500 ETF | +15.8% | +89.3% | +81.7% | +321% | 4/5 short-term, 1/3 long-term |  | 0.79 |
| FBCG: Fidelity Blue Chip Growth ETF | +14.0% | +114% | +78.6% | — | 2/5 short-term, 1/3 long-term |  | 0.58 |
| FDG: American Century Focused Dynamic Growth ETF | +5.4% | +113% | +52.4% | — | 0/5 short-term, 1/3 long-term |  | 0.46 |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | +22.5% | +77.9% | +76.6% | +235% | 4/5 short-term, 0/3 long-term |  | 0.90 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | +14.6% | +77.2% | +48.6% | +140% | 1/5 short-term, 0/3 long-term |  | 0.57 |
| [VONG](https://easycompare.io/research/vong): Vanguard Russell 1000 Growth ETF | +4.1% | +88.3% | +75.1% | +422% | 0/5 short-term, 0/3 long-term |  | 0.63 |
| [IWF](https://easycompare.io/research/iwf): iShares Russell 1000 Growth ETF | +4.0% | +87.7% | +74.1% | +416% | 0/5 short-term, 0/3 long-term |  | 0.62 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | +0.1% | +58.0% | +19.6% | +201% | 0/5 short-term, 0/3 long-term |  | 0.27 |
| [VBK](https://easycompare.io/research/vbk): Vanguard Morningstar Small-Cap Growth ETF | +9.7% | +66.3% | +17.3% | +177% | 0/5 short-term, 0/3 long-term |  | 0.25 |
| CGGR: Capital Group Growth ETF | +5.8% | +97.0% | — | — | 0/5 short-term, 0/3 long-term |  | — |
| JGRO: JPMorgan Active Growth ETF | +0.1% | +77.8% | — | — | 0/5 short-term, 0/3 long-term |  | — |
| TCHP: T. Rowe Price Blue Chip Growth ETF | +2.4% | +86.0% | +49.8% | — | 0/5 short-term, 0/3 long-term |  | 0.46 |

### How did VUG do year by year?

This table shows each investment's total return in every full calendar year since 2005, along with where VUG ranked among its popular alternatives each year.

- VUG finished ahead of the S&P 500 in 12 of its 21 full calendar years, and ahead of it in each of the last three.
- Among its popular alternatives, QQQ came out ahead of VUG most often, in 15 of the 21 years both traded.
- Ranked against its popular alternatives each year, VUG finished in the top quarter in two of 21 years and in the bottom quarter in one. In 2025, it ranked 8 of 18.

| Year | VUG | SPY |
| --- | --- | --- |
| 2025 | +19.4% | +17.7% |
| 2024 | +32.7% | +24.9% |
| 2023 | +46.8% | +26.2% |
| 2022 | −33.1% | −18.2% |
| 2021 | +27.4% | +28.7% |
| 2020 | +40.2% | +18.3% |
| 2019 | +37.0% | +31.2% |
| 2018 | −3.3% | −4.6% |
| 2017 | +27.8% | +21.7% |
| 2016 | +6.2% | +12.0% |

## Risk and diversification

How VUG has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VUG's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In three of VUG's five worst declines, the S&P 500 held up better over the same dates.
- The longest climb back to a previous high took 23 months, after VUG fell 50.7% from October 2007 to March 2009.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −50.7% | October 31, 2007 | March 9, 2009 | February 7, 2011 | −54.7% | 2008 financial crisis |
| −35.6% | November 19, 2021 | November 3, 2022 | January 23, 2024 | −19.7% | 2022 bear market |
| −31.8% | February 19, 2020 | March 23, 2020 | June 8, 2020 | −33.7% | Covid crash |
| −22.8% | February 19, 2025 | April 8, 2025 | June 24, 2025 | −18.8% |  |
| −22.3% | October 1, 2018 | December 24, 2018 | April 8, 2019 | −19.2% | late-2018 sell-off |

### How did VUG do in stock market crashes?

This section measures how far VUG, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, SPYG held up best, falling less than VUG in six of the nine crashes they both traded through.
- VUG fell further than the S&P 500 in three of the nine crashes it has traded through. The clearest case was the 2022 bear market, when VUG fell 33.7% and the S&P 500 fell 24.5%.

| Crash | Dates | VUG fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −50.7% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −18.3% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −15.2% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.2% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −22.3% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −31.8% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −33.7% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −3.5% | −3.4% |

### How closely does VUG move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Seven of the 11 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VUG's 1.04, led by QQQ, IWY and MGK.
- QQQ took just 102% of the S&P 500's losses, against 108% for VUG, while still keeping 118% of its gains.
- Over the past 10 years, VUG captured 113% of the S&P 500's gains in rising months and 108% of its losses in falling months, with a beta of 1.13. It amplified the market's moves in both directions.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VUG: Vanguard Morningstar Growth ETF (this page) | 113% | 108% | 1.13 |
| MGK: Vanguard Morningstar Mega Cap Growth ETF | 115% | 107% | 1.14 |
| [QQQ](https://easycompare.io/research/qqq): Invesco QQQ Trust, Series 1 | 118% | 102% | 1.13 |
| [SPYG](https://easycompare.io/research/spyg): State Street SPDR Portfolio S&P 500 Growth ETF | 109% | 102% | 1.08 |
| IUSG: iShares Core S&P U.S. Growth ETF | 109% | 103% | 1.08 |
| [SCHG](https://easycompare.io/research/schg): Schwab U.S. Large-Cap Growth ETF | 114% | 107% | 1.12 |
| IWY: iShares Russell Top 200 Growth ETF | 113% | 102% | 1.09 |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | 86.0% | 91.0% | 0.86 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | 76.0% | 91.0% | 0.82 |
| [VONG](https://easycompare.io/research/vong): Vanguard Russell 1000 Growth ETF | 111% | 104% | 1.10 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | 95.0% | 113% | 1.12 |
| [VBK](https://easycompare.io/research/vbk): Vanguard Morningstar Small-Cap Growth ETF | 99.0% | 125% | 1.17 |

### What diversifies VUG?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VUG into GLD would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+13.9% for VUG alone, +15.3% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of VUG over the past 5 years, with correlations of 0.45 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, MCK and MPC have moved largely independently of VUG over the past 5 years, with correlations of 0.17 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with VUG | 5Y return | Volatility | Sharpe | Rose in VUG's 3 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.33 | +119% | 11.1% | 1.48 | 1 of 3 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.45 | +225% | 19.1% | 1.34 | 1 of 3 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.40 | +101% | 14.5% | 1.04 | 1 of 3 |
| EWP: iShares MSCI Spain ETF | 0.38 | +140% | 20.3% | 0.97 | 0 of 3 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.09 | +126% | 18.9% | 0.96 | 1 of 3 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.06 | +177% | 25.5% | 0.93 | 1 of 3 |
| AMLP: Alerian MLP ETF | 0.28 | +111% | 18.9% | 0.89 | 1 of 3 |
| EFV: iShares MSCI EAFE Value ETF | 0.44 | +89.0% | 15.9% | 0.88 | 0 of 3 |

## Common questions

### What was VUG's worst drawdown?

VUG's deepest decline since it began trading in 2004 was 50.7%, from October 2007 to March 2009. It took 23 months from the low to climb back to its old high. Because VUG launched in January 2004, that record does not include the dot-com bust.

### What were VUG's best and worst years?

Over 21 full calendar years, VUG's best year was 2023, when it returned 46.8%. Its worst was 2008, with a return of -38.0%.

### Is there a better investment than VUG?

Among VUG's popular alternatives, IUS earned more than VUG with less volatility over the past 5 years: 14.7% a year at 14.9% volatility, against 12.3% a year at 22.5%. Looking beyond its popular alternatives, VLUE (US large-cap value) and AVLV (US large-cap value) earned more than VUG with less volatility over the past 5 years. VLUE returned 15.9% a year at 18.4% volatility, against 12.3% a year at 22.5%.

### Is VUG more volatile than the S&P 500?

Yes. VUG's volatility over the past 5 years was 22.5%, 1.3 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VUG's return lands within 22.5% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VUG's Sharpe ratio?

VUG's Sharpe ratio over the past 5 years was 0.63, against 0.79 for the S&P 500, so VUG earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VUG with the S&P 500?

Over the past 5 years, VUG's monthly returns had a correlation of 0.94 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VUG instead: the lower it is, the more that option would diversify a VUG holding.

### What are the best alternatives to VUG?

Of the 22 popular alternatives we compared, seven outperformed VUG in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: MGK, QQQ and SPYG.

### Did VUG outperform the S&P 500?

VUG finished ahead of the S&P 500 (SPY) in 12 of 21 full calendar years. In 2025, it returned +19.4%, against +17.7% for the index.

### How did VUG do in stock market crashes?

VUG fell less than the S&P 500 (SPY) in two of the nine major crashes it has traded through, and further in three. The clearest case was the 2022 bear market, when VUG fell 33.7% and the S&P 500 fell 24.5%.

### What diversifies VUG?

These had a low correlation with VUG over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.33), DXJ (correlation 0.45) and EMLP (correlation 0.40); among large stocks, CAH (correlation 0.17), MCK (correlation 0.05) and MPC (correlation 0.13). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/vug
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VUG live: https://betterthanspy.com/?b=VUG&utm_source=easycompare&utm_medium=research