VUG: Vanguard Morningstar Growth ETF
Share-split context: A forward split was recorded on Apr 21, 2026 with coefficient 6. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
Vanguard Morningstar Growth ETF (VUG)
The Vanguard Morningstar Growth ETF (VUG) is designed to invest in companies with strong growth potential. It is characterized by a focus on large technology companies and has shown significant price growth over the last few years.
What this ETF is trying to do
VUG seeks to provide exposure to growth-oriented stocks. Based on its Top Holdings (updated October 8, 2026), the fund is heavily invested in the technology sector. Its largest holdings include NVIDIA Corp (13.62%), Apple Inc (12.49%), and Microsoft Corp (10.12%). Other major holdings include Alphabet Inc, Amazon.com Inc, and Broadcom Inc.
What the numbers show
VUG has experienced strong growth across different timeframes. Because this ETF has a history of share splits, the following returns are split-adjusted:
• Year-to-Date: The price return is 13.66%, while the total return is 14.03%.
• One Year: The price return is 15.02%, and the total return is 15.51%.
• Three Year: The price return is 99.52%, and the total return is 102.47%.
• Five Year: The total return is 92.88%.
Price return measures only the change in the share price. Total return reflects the overall return, including distributions.
Income and distribution explanation
VUG provides a small amount of cash income to investors. It usually pays distributions quarterly, with four payments made in the last 12 months. The distribution yield is approximately 1.26%.
For growth ETFs like VUG, the distribution yield is typically low because the fund focuses more on increasing the share price than paying out high cash income.
NAV erosion explanation
"NAV erosion" happens when the net asset value of a fund declines over time. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, based on price-based evidence, VUG has an erosion score of 100 and a severity rating of "good." The data indicates that no price erosion was detected.
Share Split Note
VUG has a history of forward splits. Most recently, on April 21, 2026, the fund had a split with a coefficient of 6. In a forward split, each old share becomes multiple new shares, and the price per share falls proportionally. This change does not create a gain or loss; it simply changes the number of shares an investor owns.
Pros
• Strong historical total returns over one, three, and five years.
• Exposure to some of the world's largest growth companies.
• No price erosion detected.
Cons
• Low distribution yield for those seeking high current income.
• Heavy concentration in a few large technology stocks.
Beginner takeaway
VUG is a growth-focused fund where the primary goal is price appreciation rather than high income. While it pays a small distribution, the bulk of its historical returns have come from the increase in share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 13.62% |
| 2 | APPLE INC | AAPL | 12.49% |
| 3 | MICROSOFT CORP | MSFT | 10.12% |
| 4 | ALPHABET INC CLASS A | GOOGL | 5.34% |
| 5 | AMAZON.COM INC | AMZN | 4.76% |
| 6 | ALPHABET INC CLASS C | GOOG | 4.21% |
| 7 | BROADCOM INC | AVGO | 4.10% |
| 8 | META PLATFORMS INC CLASS A | META | 3.39% |
| 9 | TESLA INC | TSLA | 2.79% |
| 10 | ELI LILLY AND CO | LLY | 2.64% |