If you're investing a large sum of money in the stock market, it can be a bit of a challenge finding the right type of investment. Although you want to earn a good return to make the most of that money, you also want to be careful not to take on a lot of risk and incur a huge loss, either.
2024 is turning out to be another strong year for the stock market, with the S&P 500 on track for another year of 20%-plus returns. The benchmark index has produced total returns (including dividends) of nearly 25% as of this writing.
Stocks have been soaring over the last two years since the latest bull market began, and now could be a fantastic opportunity to load up on new investments.
The S&P 500 (^GSPC 0.56%) is having a very strong year, with a 27.3% gain so far. That's more than twice its average annual return going all the way back to 1957.
1 Magnificent Growth ETF That Could Turn $400 Per Month Into $1.4 Million While Barely Lifting a Finger
Launched on 01/26/2004, the Vanguard Growth ETF (VUG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The Vanguard Growth ETF will lean heavily on the tech sector, but its long-term growth potential remains strong.
The Vanguard Growth Index Fund ETF is rated a sell due to its lack of diversification and overvaluation in the tech sector. VUG has outperformed the S&P 500 but underperformed the Nasdaq, primarily due to its defensive sector exposure and high concentration in big-cap tech. The tech sector's slowing earnings growth and high valuation premiums suggest limited future returns for VUG, especially in a tepid economic environment.
This exchange-traded fund is heavily weighted toward the best-performing stocks in the S&P 500.
For investors seeking momentum, Vanguard Growth ETF VUG is probably on the radar. The fund just hit a 52-week high and is up 51.51% from its 52-week low price of $260.65/share.
A simple buy-and-hold strategy is all you really need to make a lot of money in the stock market.
Why the Vanguard Growth ETF is a great option for long-term investors.