1 Unstoppable Vanguard ETF to Buy Hand Over Fist Right Now

Core Insights - The Vanguard S&P 500 Growth ETF has consistently outperformed value-focused ETFs, with growth stocks leading in performance for most of the past six years [2][3] - The ETF is heavily weighted towards megacap stocks, particularly the "Magnificent Seven," which constitute 47.8% of its holdings [4][5] - The ETF's portfolio is primarily composed of technology and communication services sectors, which have shown bullish earnings revisions recently [6] Performance Analysis - From 2019 to 2024, the Vanguard Growth ETF only lagged behind value ETFs in 2019 and 2022, with the latter being a bear market year [2] - As of 2025, the growth ETF is outperforming S&P 500 value-tracking funds by nearly a 2-to-1 margin [3] Fund Composition - The Vanguard S&P 500 Growth ETF includes 217 stocks with a median market capitalization of $1.43 trillion, making it a significant player in the megacap fund space [4] - The ETF charges a low annual fee of 0.07%, making it attractive for buy-and-hold investors seeking growth exposure without the need for stock selection [11] Market Context - Current valuations in the S&P 500 Technology index are at 42 times earnings, which, while not cheap, is lower than the 67 multiple seen during the internet bubble in 2000 [8] - The technology sector's return on equity is approximately 30%, exceeding the 25-year average of 20%, suggesting a healthier market environment compared to past bubbles [8]