GARP vs. VUG

Last updated Aug 2, 2026

GARP (iShares MSCI USA Quality GARP ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - GARP is a Quality Factor fund tracking the MSCI USA Quality GARP Select Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 5 years, GARP returned 17.48%/yr vs 12.16%/yr for VUG. Their correlation of 0.93 means they have usually moved in the same direction. GARP charges 0.15%/yr vs 0.03%/yr for VUG.

Performance

GARP vs. VUG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) and Vanguard Growth ETF (VUG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GARP achieves a 16.89% return, which is significantly higher than VUG's 5.02% return.

GARP

• 1D: 0.66%
• 1M: -1.22%
• 6M: 14.45%
• YTD: 16.89%
• 1Y: 31.75%
• 3Y*: 28.85%
• 5Y*: 17.48%
• 10Y*: —
• ALL TIME*: 20.07%

VUG

• 1D: 1.10%
• 1M: -0.35%
• 6M: 6.39%
• YTD: 5.02%
• 1Y: 15.36%
• 3Y*: 21.19%
• 5Y*: 12.16%
• 10Y*: 17.38%
• ALL TIME*: 12.08%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
GARP iShares MSCI USA Quality GARP ETF	$25.65M	$25.43M	$23.00M
VUG Vanguard Growth ETF	$556.11M	$661.72M	$650.91M

GARP vs. VUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	16.89%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%
VUG Vanguard Growth ETF	5.02%	19.40%	32.69%	46.83%	-33.16%	27.35%	35.14%

Correlation

The correlation between GARP and VUG is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020	0.93

The correlation between GARP and VUG has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.

GARP vs. VUG - Sectors Allocation Comparison

Sectors	GARP	VUG
Technology	54.7%	56.2%
Communication Services	11.0%	15.4%
Consumer Cyclical	9.1%	11.5%
Financial Services	7.9%	3.8%
Industrials	6.4%	5.3%
Healthcare	5.4%	4.7%
Energy	3.0%	0.3%
Utilities	1.3%	0.7%
Basic Materials	1.1%	0.5%
Real Estate	0.4%	1.0%
Consumer Defensive	-	1.4%

Return for Risk

GARP vs. VUG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

GARP

GARP Risk / Return Rank: 64
GARP Sharpe Ratio Rank: 66
GARP Sortino Ratio Rank: 62
GARP Omega Ratio Rank: 60
GARP Calmar Ratio Rank: 63
GARP Martin Ratio Rank: 66

VUG

VUG Risk / Return Rank: 28
VUG Sharpe Ratio Rank: 30
VUG Sortino Ratio Rank: 29
VUG Omega Ratio Rank: 28
VUG Calmar Ratio Rank: 25
VUG Martin Ratio Rank: 29

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

GARP vs. VUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) and Vanguard Growth ETF (VUG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	GARP	VUG	Difference
Sharpe ratio: Return per unit of total volatility	1.50	0.72	+0.78
Sortino ratio: Return per unit of downside risk	2.08	1.10	+0.98
Omega ratio: Gain probability vs. loss probability	1.26	1.13	+0.12
Calmar ratio: Return relative to maximum drawdown	2.19	0.78	+1.42
Martin ratio: Return relative to average drawdown	7.99	2.47	+5.52

GARP vs. VUG - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 1.50, which is higher than the VUG Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of GARP and VUG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

GARP vs. VUG - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, smaller than the maximum VUG drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for GARP and VUG.

Drawdown Indicators

	GARP	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-50.68%	+19.34%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-16.53%	+2.84%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	-22.85%	-0.88%
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	-35.61%	+5.00%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.61%	—
Current Drawdown Current decline from peak	-4.34%	-5.53%	+1.19%
Average Drawdown Average peak-to-trough decline	-7.27%	-7.08%	-0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.75%	5.20%	-1.45%

Volatility

GARP vs. VUG - Volatility Comparison

iShares MSCI USA Quality GARP ETF (GARP) and Vanguard Growth ETF (VUG) have volatilities of 5.68% and 5.58%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GARP	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.68%	5.58%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	16.18%	14.24%	+1.94%
Volatility (1Y) Calculated over the trailing 1-year period	20.02%	17.74%	+2.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.34%	22.49%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.92%	21.55%	+2.37%

GARP vs. VUG - Expense Ratio Comparison

GARP has a 0.15% expense ratio, which is higher than VUG's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

GARP vs. VUG - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.27%, less than VUG's 0.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GARP iShares MSCI USA Quality GARP ETF	0.27%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%
VUG Vanguard Growth ETF	0.40%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both GARP and VUG in my portfolio?

With a correlation of 0.91, GARP and VUG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, GARP or VUG?

GARP has higher volatility (5.68%) compared to VUG (5.58%). In terms of maximum drawdown, GARP dropped -31.34% vs VUG's -50.68%.

Which ETF is better, GARP or VUG?

On 5-year performance, GARP leads with 17.48% vs 12.16% for VUG. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 5.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or VUG?

Over the 5-year period, GARP has performed better with a 17.48% return vs 12.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or VUG?

VUG is cheaper with a 0.03% expense ratio, compared with 0.15% for GARP.

Which ETF pays a higher dividend yield, GARP or VUG?

VUG has the higher dividend yield at 0.40%, compared with 0.27% for GARP.

What is the main difference between GARP and VUG?

GARP is categorized as Quality Factor, while VUG is Large Cap Growth Equities. GARP tracks MSCI USA Quality GARP Select Index, while VUG tracks CRSP US Large Cap Growth Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for GARP and 0.03% for VUG.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (1.50 vs 0.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.