The Vanguard Growth ETF offers efficient access to the large-cap growth segment of the U.S. stock market. Its ER is 0.04% and the fund has nearly $300B in assets across all share classes. VUG is designed for investors with an above-average tolerance for risk and capital appreciation as their primary investment objectives. This article walks readers through its unique selection process. Like many peers, VUG is concentrated at the company and sector levels, with 57% in Technology. I provide a downloadable Excel Workbook that allows readers to compare 65 ETFs.
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund launched on 01/26/2004.
Tech, communication, and consumer cyclical sectors drive robust fundamentals for growth stocks, with financials, health care, and industrials adding further upside potential. Recent market selloff has made forward valuations attractive, presenting a compelling entry point for large cap growth ETFs like Vanguard Growth ETF (VUG). VUG stands out due to its strong tech exposure, high liquidity, low expense ratio, and diversified holdings, outperforming the S&P 500 over multiple timeframes.
VUG tracks the CRSP US Large Cap Growth Index, heavily weighted toward tech and consumer discretionary, making it suitable for long-term capital growth. Positive outlook on tech, particularly AI and digital transformation, ensuring strong demand and innovation in the next 2-3 years. VUG's heavy concentration in top holdings leads to high correlation, but it adjusts passively over time, making it viable for long-term investors.
Investing a large lump sum today into a diversified exchange-traded fund (ETF) and simply holding on to it can be a great way to grow your portfolio over the long term. Historically, stocks have risen in value, and the S&P 500 has averaged an annual return of around 10% per year.
The Vanguard Growth ETF (VUG) and the Invesco QQQ Trust (QQQ) feature similar dividend yields and historical price performance.
Over the past decade-plus, growth stocks have been largely responsible for leading the major U.S. stock market indexes to new heights. Growth-driven exchange-traded funds (ETFs) -- like the Vanguard Growth ETF (VUG -5.99%) -- have significantly outperformed the S&P 500.
Just keep it simple. It's great advice that applies to many situations throughout life.
The S&P 500 (^GSPC 0.16%) index returned 25% (including dividends) in 2024, which was more than double its long-term average of 10.5%. However, the CRSP U.S. Large Cap Growth Index delivered an even better gain of 32% last year, thanks to its much larger holdings in soaring stocks like Nvidia, Meta Platforms, and Amazon.
The S&P 500 is down over 4% from the start of the year. While investors began the year with optimism, trade wars and tariffs have weighed on the outlook for the markets, for 2025 and beyond.
US large-cap growth stocks, particularly the Russell 1000 Growth Index, are in correction territory, with the "Lag 7" stocks all down year-to-date. VUG's valuation has improved, but its technical chart shows a possible bear flag, indicating caution despite a 10% selloff. Key events for VUG's top holdings, including Apple, Microsoft, and NVIDIA, could drive volatility ahead of Q1 earnings reports.
The Vanguard Growth ETF (VUG) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.