Vanguard Growth Funds Offer Low-Cost Investment Options

Vanguard growth funds offer a range of low-cost investment options for those looking to grow their wealth over the long term.

One notable fund is the Vanguard Growth Index Fund, which has a low expense ratio of 0.07%.

This means that investors can keep more of their returns, rather than paying high fees to financial advisors or managers.

The fund tracks the CRSP US Growth Index, which includes a diversified portfolio of US stocks with high growth potential.

The Vanguard growth fund has a unique approach to picking stocks. It tracks the CRSP US Large Cap Growth Index, which sorts stocks based on six fundamental factors.

The fund invests in the fastest-growing half of U.S. large-cap stocks, resulting in a portfolio that's generally more expensive but faster growing than the broad market. This is measured by the S&P 500 Index.

Here are the top-10 holdings in the fund, which include some growth investors' favorite stocks:

The Vanguard Admiral Funds are a great addition to any portfolio, especially if you're looking to invest in a top growth fund. The Vanguard S&P 500 Growth ETF is a standout option, having gained 7.4% in 2024 despite market concerns.

The S&P 500 is currently trading at 24 times trailing earnings, which is well above its 10-year average multiple of around 20. This high valuation may lead to a pullback in the market.

Stocks have become expensive relative to corporate earnings, creating a cognitive dissonance that could affect the market. Savvy investors know that being prepared is key to capitalizing on market opportunities.

The Vanguard S&P 500 Growth Index Fund ETF Shares (VOOG) is a supercharged ETF that stands out as a go-to play if the market indeed dips.

The Vanguard Index Fund Admiral Shares (VIGAX) has a portfolio that's quite interesting. It's designed to track the CRSP US Large Cap Growth Index, which sorts stocks based on six fundamental factors.

One of the most notable aspects of the fund's portfolio is its focus on growth stocks. It invests in the fastest-growing half of U.S. large-cap stocks, which results in a portfolio that's generally more expensive but faster growing than the broad market.

The fund's top 10 holdings are a mix of well-known growth stocks from various sectors. Apple is the largest holding, making up 11.53% of the portfolio with a market value of $32.5 billion.

Here are the top 10 holdings of the VIGAX fund, along with their percentage of the portfolio and market value:

These holdings are not surprising, given the fund's focus on growth stocks.

The performance of Vanguard growth funds is quite impressive. The 1-year performance of various funds is remarkably consistent, with most funds showing returns around 30.84% to 30.86%.

The Vanguard Growth Index Fund Institutional Shares and the Vanguard Growth Index Fund ETF Shares have identical 1-year performances of 30.85%.

The BlackRock Advantage Large Cap Growth Fund Class K and the Putnam Large Cap Growth Fund Class R5 also have identical 1-year performances of 30.85%.

The JPMorgan U.S. GARP Equity Fund R6 stands out with a 1-year performance of 30.86%, slightly ahead of the others.

Here's a comparison of the 1-year performances of these funds:

Vanguard has made a significant move by announcing the largest ever expense ratio reduction to one hundred sixty-eight mutual fund and exchange-traded share classes across their portfolio.

This reduction will likely have a positive impact on investors' returns, as lower expense ratios can mean more money in their pockets.

Investors should take note that Vanguard has made a commitment to transparency and has been working to reduce costs for their clients.

Vanguard's expense ratio reduction is a testament to their dedication to providing affordable investment options to a wide range of investors.