VNQ vs VUG
Vanguard Real Estate Index Fund ETF Shares vs Vanguard Growth Index Fund ETF Shares
Last updated: 2026-04-02
Vanguard Real Estate Index Fund ETF Shares (VNQ) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.13%. The fund offers an attractive dividend yield of 3.92%. Launched in 2004, the fund has a 22-year track record.
Vanguard Growth Index Fund ETF Shares (VUG) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a very low expense ratio of 0.03%. The fund offers a modest dividend yield of 0.45%. Launched in 2004, the fund has a 22-year track record.
Quick Verdict
VUG is significantly cheaper at 0.03% vs 0.13% expense ratio, saving you approximately $199 per $10,000 invested over 10 years. Over the past year, VUG has significantly outperformed with a 18.0% return vs -1.7%. Income investors may prefer VNQ for its higher yield (3.9% vs 0.5%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
0 of top 9 holdings overlap (0% overlap in top holdings)
VNQ Top Holdings
| Name | Weight |
|---|---|
| Vanguard Real Estate II Index Fund!mutf/VRTPX | 14.38% |
| Welltower Inc.WELL | 7.52% |
| Prologis, Inc.PLD | 7.08% |
| Equinix, Inc.EQIX | 5.11% |
| American Tower CorporationAMT | 4.80% |
| Simon Property Group, Inc.SPG | 3.56% |
| Realty Income CorporationO | 3.27% |
| Digital Realty Trust, Inc.DLR | 3.25% |
| Public StoragePSA | 2.59% |
| CBRE Group, Inc.CBRE | 2.35% |
VUG Top Holdings
| Name | Weight |
|---|---|
| NVIDIA CorporationNVDA | 12.82% |
| Apple Inc.AAPL | 12.23% |
| Microsoft CorporationMSFT | 9.15% |
| Alphabet Inc.GOOG | 4.49% |
| Meta Platforms, Inc.META | 4.44% |
| Amazon.com, Inc.AMZN | 4.41% |
| Broadcom Inc.AVGO | 3.95% |
| Tesla, Inc.TSLA | 3.58% |
| Eli Lilly and CompanyLLY | 2.82% |
Which One Should You Choose?
Choose VUG if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose VUG if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Choose VNQ if...
you prioritize dividend income and want higher regular distributions from your portfolio.