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
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All history
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VTV
Value (VTV)
- After-tax if sold at end
- $48,741
- Before tax
- $61,062
- 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
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.