Value vs growth
VTV vs VUG in a taxable account
Compare a large-cap value fund against a large-cap growth fund, including distribution tax character.
Modeled result
From 2005 to 2025, VUG finished ahead of VTV before tax and retained about $48,079 more in estimated end-date sale proceeds after taxes paid during the test, from the same $10,000 start.
Historical model
Growth of $10,000
2005-01-03 to 2025-12-31
| Date | VTV | VUG |
|---|---|---|
| Approx. Jan 2005 | $10,000 | $10,000 |
| Approx. Sep 2005 | $10,686 | $10,275 |
| Approx. Jan 2006 | $11,195 | $10,901 |
| Approx. Oct 2006 | $12,496 | $11,195 |
| Approx. Feb 2007 | $13,559 | $12,103 |
| Approx. Nov 2007 | $13,737 | $13,383 |
| Approx. Mar 2008 | $12,147 | $11,755 |
| Approx. Dec 2008 | $7,546 | $7,343 |
| Approx. Apr 2009 | $7,735 | $8,202 |
| Approx. Dec 2009 | $10,222 | $11,062 |
| Approx. May 2010 | $10,825 | $11,473 |
| Approx. Jan 2011 | $11,870 | $13,158 |
| Approx. May 2011 | $12,463 | $13,660 |
| Approx. Feb 2012 | $12,549 | $14,433 |
| Approx. Jun 2012 | $12,592 | $14,535 |
| Approx. Mar 2013 | $15,067 | $16,639 |
| Approx. Jul 2013 | $16,657 | $17,882 |
| Approx. Apr 2014 | $18,698 | $20,686 |
| Approx. Aug 2014 | $19,120 | $21,578 |
| Approx. Apr 2015 | $20,852 | $24,310 |
| Approx. Sep 2015 | $19,183 | $22,857 |
| Approx. May 2016 | $20,715 | $23,778 |
| Approx. Sep 2016 | $21,861 | $25,400 |
| Approx. Jun 2017 | $24,976 | $29,270 |
| Approx. Oct 2017 | $26,588 | $31,083 |
| Approx. Jul 2018 | $28,169 | $35,701 |
| Approx. Nov 2018 | $28,406 | $33,756 |
| Approx. Aug 2019 | $29,047 | $37,279 |
| Approx. Dec 2019 | $32,126 | $41,405 |
| Approx. Aug 2020 | $29,880 | $56,179 |
| Approx. Jan 2021 | $33,551 | $59,709 |
| Approx. Sep 2021 | $38,879 | $70,976 |
| Approx. Jan 2022 | $41,358 | $64,948 |
| Approx. Oct 2022 | $37,915 | $51,609 |
| Approx. Feb 2023 | $41,983 | $56,394 |
| Approx. Nov 2023 | $41,668 | $68,895 |
| Approx. Mar 2024 | $48,785 | $83,042 |
| Approx. Dec 2024 | $55,912 | $100,786 |
| Approx. Apr 2025 | $51,380 | $88,231 |
| Approx. Dec 2025 | $61,063 | $119,208 |
| Holding | Before tax | Value after taxes paid | If sold at end | Max drawdown |
|---|---|---|---|---|
VTV Value (VTV) | $61,063 | $53,786 | $48,741 | -59.27% |
VUG Growth (VUG) | $119,208 | $113,386 | $96,821 | -50.68% |
VTV
Value (VTV)
- After-tax if sold at end
- $48,741
- Before tax
- $61,063
- Value after taxes paid
- $53,786
- Max drawdown
- -59.27%
VUG
Growth (VUG)
- After-tax if sold at end
- $96,821
- Before tax
- $119,208
- Value after taxes paid
- $113,386
- Max drawdown
- -50.68%
Detailed metrics
| Holding | Pre-tax value | Pre-tax CAGR | Max drawdown | Value after taxes paid | Tax paid | Embedded tax | If sold at end | CAGR if sold |
|---|---|---|---|---|---|---|---|---|
Value (VTV) VTV | $61,063 | 9.00% | -59.27% | $53,786 | $2,860 | $5,045 | $48,741 | 7.84% |
Growth (VUG) VUG | $119,208 | 12.53% | -50.68% | $113,386 | $1,385 | $16,566 | $96,821 | 11.42% |
Assumptions
$10,000 lump sum; distributions reinvested; monthly rebalancing; 2005-01-03 to 2025-12-31.
Tax profile: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.
FAQ
- Is growth more tax-efficient than value?
- In a taxable account, growth funds often distribute less because their dividend yield is lower, so more return stays as unrealized gains until a sale. That defers tax, but total return still depends on how each style performs.
- Do value and growth funds have high turnover?
- Broad index value and growth funds generally have low turnover. Style membership changes gradually, so most of the tax difference comes from dividend yield and not from realized trading gains.
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