Core Viewpoint - The Vanguard Growth ETF (VUG) is highlighted as a strong investment option for those looking to gain exposure to growth stocks while mitigating risks associated with individual stock investments [2][9]. Group 1: ETF Overview - VUG is a growth-focused ETF that primarily invests in large-cap companies, providing a balance of growth and stability [3][4]. - The ETF is heavily weighted in the tech sector, which constitutes 62.1% of its holdings, followed by consumer discretionary (18.2%), industrials (8.2%), healthcare (5%), and financials (2.9%) [6][7]. Group 2: Performance Metrics - Over the past decade, VUG has increased by 353%, significantly outperforming the S&P 500, which rose by 225% during the same period [9]. - An investment of $1,000 in VUG a decade ago would be worth over $1,200 more than an equivalent investment in the S&P 500 [9]. Group 3: Holdings and Concentration - The top 10 holdings of VUG include major tech companies such as Nvidia (12.01%), Microsoft (10.70%), and Apple (10.47%), indicating a concentration in a few stocks [7]. - Due to this concentration, it is advised not to make VUG the bulk of an investment portfolio, but it can serve as a staple piece [8].
The Smartest Growth ETF to Buy With $1,000 Right Now
The Motley Fool·2025-11-08 13:45