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Vanguard Morningstar Growth ETF vs Vanguard Information Technology ETF
VS
Comparative Analysis
VGT wins due to its superior year-to-date and trailing returns, driven by its concentrated exposure to the technology sector. While VUG offers broader diversification, VGT's focused approach has significantly outperformed in the current market environment. VGT's higher expense ratio is justified by its stronger performance, making it the preferred choice for investors seeking aggressive growth. VUG provides a more diversified exposure across large-cap growth stocks, including technology, communication services, and consumer cyclical sectors. However, its performance lags behind VGT's specialized technology focus. Investors prioritizing broad market exposure might lean towards VUG, but the data clearly favors VGT for its exceptional growth trajectory.
Key Differentiator
The key differentiator between VUG and VGT is their sector concentration. VGT is almost exclusively focused on technology, allowing it to capture the full upside of that sector's growth. VUG, while heavily weighted towards technology, offers broader diversification across other growth-oriented sectors. This specialization has been the primary driver of VGT's superior performance in recent periods, making it a higher-conviction, higher-risk bet on the tech industry.
Joint Outlook
The outlook for VGT remains strong, contingent on the continued dominance of the technology sector. If tech innovation and corporate earnings persist, VGT is positioned for further gains, potentially reaching new highs. However, any significant headwinds for the tech industry could lead to a sharp correction. VUG's outlook is more stable due to its diversification. While it may not match VGT's peak performance, it offers a more resilient growth profile that could outperform if broader economic factors or other sectors gain prominence. In a bull case scenario, continued AI adoption and digital transformation trends would propel VGT higher. In a bear case, rising interest rates or regulatory scrutiny on Big Tech could pressure VGT significantly, potentially leading investors to rotate into the more diversified VUG for relative safety.
Price Analysis Comparison
Asset Metrics
| Metric | VUG | VGT |
|---|---|---|
| 52 Week Range | $69.63 - $93.00 | $83.09 - $130.66 |
| Prev. Close | $91.31 | $127.25 |
| Market Cap | 20.21B | N/A |
| 24h Volume | 4.34M | 3.05M |
VUG, with a price of $91.97, is trading closer to its 52-week high of $93 than its low of $69.63, indicating strong recent performance. VGT, priced at $127.98, is also near its 52-week high of $130.66, having risen from a low of $83.09. Both ETFs are exhibiting strong upward momentum, trading well above their 50-day and 200-day moving averages. VUG's 50-day SMA is $88.97 and its 200-day SMA is $83.49, while VGT's 50-day SMA is $121.92 and its 200-day SMA is $107.41. The technical indicators suggest both are in uptrends, but VGT's performance metrics are more pronounced.
Market Performance
| Metric | VUG | VGT |
|---|---|---|
| Volatility (30D) | 16.29% | 19.07% |
| 24h Range | $91.49 - $92.13 | $126.95 - $128.20 |
| Market Strength (RSI) | 56.5 | 59.6 |
| Trend (SMA 50) | Bullish | Bullish |
Both assets exhibit similar volatility levels (~18%). Market momentum is currently Bullish for both.
Technical Indicators
| Indicator | VUG | VGT |
|---|---|---|
| RSI (14) | 56.50 | 59.60 |
| 50-Day MA | $88.97 | $121.92 |
| 200-Day MA | $83.49 | $107.41 |
VGT exhibits stronger technical momentum with an RSI of 59.6 and a MACD of 2.18, compared to VUG's RSI of 56.5 and MACD of 1.01. Both ETFs are trading above their key moving averages, with VGT showing a greater distance above its 50-day ($121.92) and 200-day ($107.41) SMAs than VUG is above its respective averages ($88.97 and $83.49). VGT's stochastic indicator at 60.12 suggests continued upward potential, while VUG's at 70.57 is approaching overbought territory but still within a strong trend phase. The CCI for VGT is 33.21, indicating a neutral to slightly positive trend, whereas VUG's CCI of 71.76 suggests stronger positive momentum.
AI Analyst Sentiment
Technical rating: based on current price action versus moving averages and momentum. This measures short-term chart trend, not analyst opinion or company fundamentals.
VUG
Technical Score: 75/100
VGT
Technical Score: 78/100
As ETFs, VUG and VGT do not have analyst ratings or median price targets. Sentiment must be inferred from price action and fund flows. The significant outperformance of VGT year-to-date and over the trailing year suggests strong positive sentiment towards the technology sector, which is VGT's primary focus. Investors have favored VGT's concentrated growth potential, driving its price higher. VUG, while popular with substantial net assets, has seen less aggressive investor demand compared to the specialized growth offered by VGT.
Risk Stratification
| Metric | VUG | VGT |
|---|---|---|
| Sharpe Ratio | 0.82 | 1.06 |
VGT's primary risk stems from its extreme concentration in the technology sector (99.27%). A downturn in technology, driven by regulatory changes, slowing innovation, or macroeconomic shifts impacting tech spending, could disproportionately harm VGT. VUG, with its diversified sector allocation (Technology 57.75%, Communication Services 14.53%, Consumer Cyclical 11.29%), offers a more balanced risk profile. However, VUG's broader exposure means it may not capture the same upside as VGT during strong technology rallies. Both ETFs carry market risk inherent in large-cap growth investing.
Comparative ProTips
- Consider VGT for aggressive growth if you have a high conviction in the technology sector's continued outperformance.
- For a more balanced approach to large-cap growth, VUG offers diversification benefits, albeit with potentially lower returns during tech-led rallies.
- Monitor technology sector news and macroeconomic factors closely, as they will disproportionately impact VGT's performance.
Monte Carlo Projection (10yr)
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative
3%
Aggressive
Portfolio Value
$
✎
Position Size: $200 - $300 per asset
VUG
Current: $91.97
ENTRY ZONES
Conservative
$87.37
Aggressive
$91.97
RISK MANAGEMENT
STOP LOSS
$84.75
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$91.74
+10%
$96.11
+15%
$100.48
VGT
Current: $127.98
ENTRY ZONES
Conservative
$121.58
Aggressive
$127.98
RISK MANAGEMENT
STOP LOSS
$117.93
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$127.66
+10%
$133.74
+15%
$139.82
Calculate Your Trade
Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. Identifying the stronger asset is based on relative strength (RS) and technical convergence. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored VGT based on growth trajectory. This is valid for the specified timeframe only.
Frequently Asked Questions
Which ETF is a better buy, VUG or VGT?+
VGT is a better buy for investors seeking aggressive growth, primarily due to its concentrated exposure to the technology sector and superior year-to-date returns (33.84% vs VUG's 11.13%). VUG offers broader diversification but has lagged in performance.
What are the key risks for VUG vs VGT?+
VGT's main risk is its heavy concentration in the technology sector, making it vulnerable to sector-specific downturns. VUG's risk is more diversified across sectors, but it may miss out on the extreme upside of a single sector rally.
How do VUG and VGT compare on expense ratios?+
VUG has a lower expense ratio of 0.03% ($3.00 per $10,000 invested), while VGT's expense ratio is 0.09% ($9.00 per $10,000 invested). VUG is the cheaper option.
What is the sector exposure of VUG and VGT?+
VGT is heavily concentrated in Technology (99.27%). VUG has a more diversified sector allocation, with Technology being its largest at 57.75%, followed by Communication Services (14.53%) and Consumer Cyclical (11.29%).
How has VUG performed relative to its category?+
VUG's year-to-date return is 11.13%, significantly outperforming its category return of 2.85%. Its 1-year return of 13.09% also beats its category's 29.03% return, indicating mixed relative performance over different timeframes.
How has VGT performed relative to its category?+
VGT has delivered exceptional year-to-date returns of 33.84%, far exceeding its category's 13.51%.
Which ETF has larger net assets?+
VUG has larger net assets, with $392 billion, compared to VGT's $177.9 billion. This indicates VUG is a more established and widely held fund.