What if I told you that the most popular ETF on the planet might not be your best bet? Not by a small margin — I mean tens of thousands of dollars difference over 15 years.
Yes, I’m talking about VOO, the go-to S&P 500 ETF that every personal finance guru, podcast, and subreddit seems to worship. You bought it. And hey, it’s not bad — you’re getting the market average. But… there’s a Vanguard ETF that’s been quietly outperforming VO for years.
And when you see the numbers, you’ll wonder… why hasn’t anyone shouted about this sooner?
⚠️ Quick disclaimer: I’m not a financial adviser. This is for educational purposes only. Always do your own research before investing.
Meet the Contenders 🏁
VOO tracks the S&P 500 — all 507 companies, weighted by size. Big names like Apple, Microsoft, Nvidia dominate.
Price (Dec 2025): $622
Expense ratio: 0.03%
Dividend yield: 1.12%
10-year average annual return: ~14.9%
💡 $10,000 invested 10 years ago? Almost $40,000 today. Incredible… but here’s the twist.
Enter VUG — Vanguard S&P 500 Growth ETF 🌱
One extra letter. Same company. Same philosophy. But the returns tell a different story.
Unlike VOO, VUG filters out the underperformers. It picks S&P 500 companies based on:
Sales growth — is revenue expanding?
Earnings-to-price ratio — is it profitable relative to its stock price?
Momentum — is it already winning?
The result? Instead of 500+ stocks, VUG holds around 220 as of Dec 2025 — all high-growth winners.
10-year average annual return: ~16.5%
That’s 1.6% more per year than VOO. Sounds small? Not really. $10,000 invested 10 years ago would be over $47,000 in VUG instead of $39,000 in VOO. That’s $8,000 extra, doing basically nothing different.
Risk vs Reward ⚖️
Yes, growth ETFs like VUG are volatile:
2022 crash? VOO -18%, VUG -30%. 😱
But rebounds are explosive: 2023 +30%, 2024 +36%. Those two years erased the drawdown and then some.
Think of VUG as a Ferrari on the road: fast and powerful when things are smooth, but it can wobble during rough patches.
Who Should Buy Which?
Ask yourself:
Time horizon: Decades? VUG rewards patience. Near retirement? Stick to VOO.
Risk tolerance: Can you stomach 30% drops without panic-selling?
Belief in tech & AI: VUG bets on big tech dominance (Nvidia, Microsoft, Meta). Skeptical? VOO might be safer.
💡 Pro tip: Split your portfolio — 70% VOO for stability, 30% VUG for growth. Balance risk and reward.
Key Takeaways ✅
| ETF | Stocks | Expense Ratio | Dividend | 10-Year Avg Return | Notes |
|---|---|---|---|---|---|
| VOO | 507 | 0.03% | 1.12% | 14.9% | Broad, stable, dividend-friendly |
| VUG | 220 | 0.07% | 0.5% | 16.5% | Growth-focused, tech-heavy, volatile |
Over decades, that extra 1.6% per year compounds massively — but only if you can handle the ride.
Ready to take your S&P 500 game to the next level? 🚀
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