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VIG vs. VUG

Vanguard Dividend Appreciation ETF

VIG
$--
vs

Vanguard Growth ETF

VUG
$--

Correlation

0.86
VIGVanguard Dividend Appreciation ETF
VUGVanguard Growth ETF

What is VIG?

VIG Seeks to track the performance of the S&P U.S. Dividend Growers Index. Index is composed of Large-cap equity, emphasizing stocks with a record of growing their dividends year over year. Effective September 20, 2021, the fund changed its benchmark from the NASDAQ US Dividend Achievers Select Index to the S&P U.S. Dividend Growers Index.

Snapshot
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VIG Vanguard Dividend Appreciation ETF
VUG Vanguard Growth ETF
Inception date
Apr 21 2006
Jan 26 2004
Expense ratio
0.06%
0.04%
VIG has a higher expense ratio than VUG by 0.01%. This can indicate that it’s more expensive to invest in VIG than VUG.
Type
US Equities
US Equities
VIG targets investing in US Equities, while VUG targets investing in US Equities.
Fund owner
Vanguard
Vanguard
VIG is managed by Vanguard, while VUG is managed by Vanguard.
Volume (1m avg. daily)
$157,665,108
$205,784,508
Both VIG and VUG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$67,239,425,848
$89,278,316,853
VIG has more assets under management than VUG by $22,038,891,005. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
S&P U.S. Dividend Growers Index
CRSP U.S. Large Cap Growth Index
VIG is based off of the S&P U.S. Dividend Growers Index, while VUG is based off of the CRSP U.S. Large Cap Growth Index
Inverse/Leveraged
No
No
VIG and VUG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
VIG and VUG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
Yes
No
VIG may offer dividends, while VUG does not. The frequency and yield of the dividend for VIG may vary.
Prospectus
Neither VIG nor VUG require a K1.
VIG and VUG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toVIG

#RB

Rotating Bonds

Category

Getting Defensive, Diversification

Risk Rating

Moderate

Automated Strategies
Related toVUG

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.