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While many ETFs struggle to outperform the market, there are some that manage to do so consistently. Among these, the Vanguard S&P 500 Growth ETF stands out with its impressive track record of market-beating performance. Since its inception in 2010, this ETF has delivered an annualized return of 16.4%, compared to the standard S&P 500 ETF’s annualized return of 14.9% over the same period.
To put this into perspective, if you had invested $1,000 in each of these ETFs 24 years ago, the Vanguard S&P 500 Growth ETF would have yielded significantly higher returns. This outperformance is attributed to the ETF’s focus on high-growth stocks selected from the top 230 companies in the S&P 500 index, offering a good balance of diversification and safety.
Despite its strong performance, the Vanguard S&P 500 Growth ETF remains relatively low-risk compared to other ETFs. It is heavily weighted towards well-established companies such as Apple, Microsoft, Nvidia, and Amazon, which collectively make up 41.7% of the total holdings. These companies are poised to benefit from the growing trends in artificial intelligence, providing a strong growth outlook for the ETF going forward.
In addition to its solid performance and growth prospects, the Vanguard S&P 500 Growth ETF is also cost-effective, with an expense ratio of just 0.1%. This makes it an attractive option for investors looking for a combination of strong returns and low fees.
Overall, the Vanguard S&P 500 Growth ETF presents a compelling investment opportunity for a wide range of investors, with the potential for long-term growth and relative stability. If you have $1,000 to invest, it may be worth considering this ETF as part of your portfolio.
Before making any investment decisions, it’s important to weigh the potential risks and rewards. While the Vanguard S&P 500 Growth ETF has shown consistent performance, it’s always advisable to do your own research and consider your investment goals and risk tolerance.
Please note that the Vanguard Admiral Funds – Vanguard S&P 500 Growth ETF was not among the 10 stocks recently identified by The Motley Fool Stock Advisor analyst team as potential high performers. However, past recommendations from this team have delivered significant returns for investors, highlighting the value of thorough research and strategic investing.
Ultimately, the decision to invest in the Vanguard S&P 500 Growth ETF or any other stock should be based on your individual financial goals and risk tolerance.
On September 9, 2024, it was announced that John Mackey, the former CEO of Whole Foods Market, which is now an Amazon subsidiary, has joined The Motley Fool’s board of directors. Additionally, Jennifer Saibil has disclosed her positions in Apple. The Motley Fool itself has disclosed that it holds positions in and also recommends Amazon, Apple, Berkshire Hathaway, Microsoft, Nvidia, and Vanguard S&P 500 ETF. Furthermore, The Motley Fool has gone on record recommending specific options, namely the long January 2026 $395 calls on Microsoft and the short January 2026 $405 calls on Microsoft. It is important to note that The Motley Fool operates with a disclosure policy.
