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VGT vs VUG: Which Vanguard ETF Has More Upside?
Jan 29, 2025
Vanguard has long been the golden standard for low-cost ETFs that deliver exceptional long-term returns. Investors can choose from many Vanguard ETFs, but few of them are compared to VGT and VUG.
Both of these funds track large tech companies, but they have some key differences. VGT and VUG have both delivered solid long-term returns, but if you could only choose one, which one would make more sense for your portfolio? We'll dive into portfolio allocations, long-term returns, and other factors to determine which Vanguard ETF has more upside.

Key Points

VGT and VUG are two of the top-performing Vanguard ETFs that have delivered steady long-term returns.
VGT’s outsized tech exposure has helped it outperform VUG over the long run, but VUG is the less risky option.
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Long-Term Returns

VUG and VGT both have impressive long-term returns, but VGT is the clear winner. While VUG has an annualized 3-year return of 12.0% and an annualized 10-year return of 16.1%, VGT has annualized returns of 17.1% and 21.2% during those time frames, respectively.
VUG has a lower expense ratio, but it's too small of a difference to heavily consider in your analysis. VUG has a 0.04% expense ratio, while VGT has a 0.10% expense ratio. These low expense ratios further demonstrate that you can find some of the best low-cost ETFs with Vanguard.
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