This exchange-traded fund holds 231 of the top-performing growth stocks from the S&P 500 index.
The S&P 500 is an index of 500 companies listed on U.S. stock exchanges. The S&P 500 Growth index features 231 of the top-performers from the regular S&P 500.
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
The S&P 500 index has strict entry criteria, and only the highest-quality companies make the cut. The S&P 500 Growth index consistently outperforms the S&P 500 thanks to its unique composition.
The S&P 500 Growth index takes the top-performing stocks from the regular S&P 500 and disregards the underperformers. The S&P 500 Growth index is up 240% over the past decade, compared to 176% for the S&P 500.
Growth stocks have dominated the market, but signs of a shift to value stocks are emerging. Vanguard S&P 500 Growth Index Fund ETF Shares and Vanguard S&P 500 Value Index Fund ETF Shares can play a crucial role in boosting returns. Indicators of a cyclical shift from growth to value include valuation spreads and sectoral performance.
VOOG saw a strong rally of nearly 30% year-to-date, but has since corrected to a 17% total return, narrowing the performance gap with VOOV. VOOG offers high potential for growth with low expense ratio and strong liquidity, but faces volatility due to weak calendar trends and stretched valuation. The ETF's technical chart shows mixed readings, with support near $295-$305 and resistance at $350, making it a hold for now.
Just 10 of the Vanguard S&P 500 Growth ETF's 229 holdings make up over 60% of the fund's value. Strong performances by these top names have been the key drivers of the ETF's gains.
The S&P 500 has delivered a compound annual return of 10.4% since its inception in 1957. Many stocks in the AI space have raced ahead of that average annual return in 2024 already.
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
Vanguard S&P 500 Growth Index Fund ETF Shares holds over 200 stocks of the S&P 500 Index with growth characteristics. The portfolio is overweight in the information technology sector and highly concentrated in a few mega-cap companies. The VOOG ETF shows excellent quality metrics and has outperformed its parent index since its inception, but lags its peers.
For investors seeking momentum, Vanguard S&P 500 Growth ETF VOOG is probably on the radar. The fund just hit a 52-week high and is up 39% from its 52-week low of $81.93 per share.