PYPL vs. VUG

Last updated Jun 16, 2026

PYPL (PayPal Holdings, Inc.) is a stock, while VUG (Vanguard Growth ETF) is Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Over the past 10 years, PYPL returned 1.49%/yr vs 18.30%/yr for VUG. A 0.65 correlation means they provide meaningful diversification when combined.

Performance

PYPL vs. VUG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PayPal Holdings, Inc. (PYPL) 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, PYPL achieves a -26.76% return, which is significantly lower than VUG's 7.94% return. Over the past 10 years, PYPL has underperformed VUG with an annualized return of 1.49%, while VUG has yielded a comparatively higher 18.30% annualized return.

PYPL

• 1D: 2.31%
• 1M: -4.01%
• YTD: -26.76%
• 6M: -29.60%
• 1Y: -39.49%
• 3Y*: -13.59%
• 5Y*: -30.73%
• 10Y*: 1.49%

VUG

• 1D: 2.81%
• 1M: 0.27%
• YTD: 7.94%
• 6M: 9.17%
• 1Y: 26.29%
• 3Y*: 24.04%
• 5Y*: 14.43%
• 10Y*: 18.30%

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

PYPL vs. VUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PYPL PayPal Holdings, Inc.	-26.76%	-31.44%	38.98%	-13.77%	-62.23%	-19.48%	116.51%	28.64%	14.22%	86.52%
VUG Vanguard Growth ETF	7.94%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%

Correlation

The correlation between PYPL and VUG is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jul 20, 2015	0.65

The correlation between PYPL and VUG shifts across timeframes, from 0.45 (1 year) to 0.65 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

PYPL vs. VUG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PYPL

PYPL Risk / Return Rank: 8
PYPL Sharpe Ratio Rank: 5
PYPL Sortino Ratio Rank: 8
PYPL Omega Ratio Rank: 7
PYPL Calmar Ratio Rank: 12
PYPL Martin Ratio Rank: 10

VUG

VUG Risk / Return Rank: 44
VUG Sharpe Ratio Rank: 51
VUG Sortino Ratio Rank: 48
VUG Omega Ratio Rank: 49
VUG Calmar Ratio Rank: 35
VUG Martin Ratio Rank: 38

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PYPL vs. VUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PayPal Holdings, Inc. (PYPL) 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.

	PYPL	VUG	Difference
Sharpe ratio: Return per unit of total volatility	-1.02	1.59	-2.61
Sortino ratio: Return per unit of downside risk	-1.31	2.16	-3.47
Omega ratio: Gain probability vs. loss probability	0.81	1.28	-0.47
Calmar ratio: Return relative to maximum drawdown	-0.79	1.60	-2.39
Martin ratio: Return relative to average drawdown	-1.38	5.50	-6.87

PYPL vs. VUG - Sharpe Ratio Comparison

The current PYPL Sharpe Ratio is -1.02, which is lower than the VUG Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of PYPL 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

PYPL vs. VUG - Drawdown Comparison

The maximum PYPL drawdown since its inception was -87.30%, which is greater than VUG's maximum drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for PYPL and VUG.

Drawdown Indicators

	PYPL	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-87.30%	-50.68%	-36.62%
Max Drawdown (1Y) Largest decline over 1 year	-49.92%	-16.53%	-33.39%
Max Drawdown (3Y) Largest decline over 3 years	-57.34%	-22.85%	-34.49%
Max Drawdown (5Y) Largest decline over 5 years	-87.30%	-35.61%	-51.69%
Max Drawdown (10Y) Largest decline over 10 years	-87.30%	-35.61%	-51.69%
Current Drawdown Current decline from peak	-86.11%	-2.90%	-83.21%
Average Drawdown Average peak-to-trough decline	-35.91%	-7.09%	-28.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	28.73%	4.79%	+23.94%

Volatility

PYPL vs. VUG - Volatility Comparison

PayPal Holdings, Inc. (PYPL) has a higher volatility of 7.51% compared to Vanguard Growth ETF (VUG) at 6.32%. This indicates that PYPL's price experiences larger fluctuations and is considered to be riskier than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PYPL	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.51%	6.32%	+1.19%
Volatility (6M) Calculated over the trailing 6-month period	31.81%	13.28%	+18.53%
Volatility (1Y) Calculated over the trailing 1-year period	38.92%	16.65%	+22.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.10%	22.34%	+19.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.79%	21.51%	+17.28%

Dividends

PYPL vs. VUG - Dividend Comparison

PYPL's dividend yield for the trailing twelve months is around 0.99%, more than VUG's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PYPL PayPal Holdings, Inc.	0.99%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VUG Vanguard Growth ETF	0.38%	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 PYPL and VUG in my portfolio?

PYPL and VUG have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PYPL or VUG?

PYPL has higher volatility (7.51%) compared to VUG (6.32%). In terms of maximum drawdown, PYPL dropped -87.30% vs VUG's -50.68%.

Which has better risk-adjusted returns?

VUG currently has the higher Sharpe Ratio (1.59 vs -1.02), 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.