
The Vanguard Growth ETF is a popular investment option for those looking to grow their wealth over the long term. It's an index fund that tracks the CRSP US Growth Index, which is a comprehensive benchmark of US growth stocks.
This fund has a low expense ratio of 0.07%, making it an attractive choice for investors who want to keep costs down. The expense ratio is significantly lower than many other growth ETFs on the market.
The Vanguard Growth ETF has a diverse portfolio of over 700 stocks, with a focus on large-cap growth companies. This diversification helps to minimize risk and maximize returns.
The fund's performance has been impressive, with a 10-year annualized return of 14.3%. This is higher than the S&P 500's 10-year annualized return of 12.1%.
On a similar theme: Return Stacking Etfs
Fund Performance
The Vanguard Growth ETF has had a remarkable performance over the years, with a 15.90% annualized return over the past 10 years, outperforming the S&P 500 benchmark's 11.23% annualized return.
In the last 12 months, the fund has returned 30.31%, a significant increase from its year-to-date return of -1.20%. This performance is impressive, especially considering the market fluctuations.
Here are the monthly returns for the Vanguard Growth ETF for the past few years:
Performance Chart
The Vanguard Growth ETF has consistently outperformed the S&P 500 index over the past decade, with an annualized return of 15.90% compared to the benchmark's 11.23%.
Its growth has been impressive, with a 30.31% return in the last 12 months and a -1.20% year-to-date (YTD) return.
To put this into perspective, the fund has returned a whopping 27.35% in 2021 and 40.25% in 2020.
Here's a breakdown of the fund's performance over the past few years:
The fund's performance has been a rollercoaster ride, but it's worth noting that it has consistently outperformed the S&P 500 index over the long term.
Check this out: Vanguard Index Funds Returns
Monthly Dividends
Monthly dividends are a crucial aspect of fund performance. The Vanguard Growth ETF has been paying out dividends on a monthly basis, with the total dividend amount varying from year to year.
In 2024, the total monthly dividend payout was $1.91. This is a significant amount, especially considering it's a relatively low dividend compared to other years.
Related reading: Dollar Cost Averaging Weekly vs Monthly
The highest monthly dividend payout was seen in 2018, with a total of $1.77. This is a notable increase from previous years and highlights the potential for dividend growth.
Here's a breakdown of the total monthly dividend payout for each year:
These numbers demonstrate the importance of regular dividend payments in maintaining a stable investment portfolio.
Investment Analysis
Vanguard Growth ETF stock has been a strong performer in recent years, outpacing the S&P 500 by over 11% in the past three years.
The ETF has a simple and efficient structure, with low fees and minimal turnover, making it an attractive option for long-term investors. Its ten-year returns are about average, while its five-year track record is slightly above average.
Vanguard Growth ETF aims to provide growth for investors through large-cap stocks, particularly in the technology sector. It invests in growth stocks of large-cap companies and seeks to track the performance of the CRSP US Large Cap Growth Index.
Here's an interesting read: How Do Angel Investors Make Money
The ETF has a strong track record of outperforming other funds in its category, including the Vanguard Value ETF. In fact, it has outpaced the Vanguard Value ETF by more than nine percentage points over the past three years.
Here are some key statistics about Vanguard Growth ETF:
Its strong performance and high profitability have earned it a buy rating, making it a solid option for investors looking to add growth stocks to their portfolio.
Frequently Asked Questions
Which is better, VUG or VGT?
Between VUG and VGT, VUG is the more cost-effective option with a lower TER of 0.04%. However, VUG has outperformed VGT in terms of year-to-date returns, making it a more attractive choice for investors.
What are the top 10 stocks in VUG?
The top stocks in VUG are MSFT (Microsoft Corporation), AMZN (Amazon.com, Inc.), META (Meta Platforms, Inc.), TSLA (Tesla, Inc.), GOOGL (Alphabet Inc.), GOOG (Alphabet Inc.), LLY (Eli Lilly and Company), V (Visa Inc.), and two more stocks that are not listed here.
What is the difference between Vanguard Value ETF and Vanguard Growth ETF?
The main difference between Vanguard Value ETF and Vanguard Growth ETF is that the Value ETF focuses on undervalued companies, while the Growth ETF invests in companies with high growth potential. This distinction is based on the underlying CRSP US Large Cap Value and Growth Indexes, respectively.
Featured Images: pexels.com