Portfolio size, cost, and risk profiles could be selling points for investors seeking a growth-focused fund.Both the Vanguard Growth ETF (VUG +0.59%) and the iShares Russell Top 200 Growth ETF (IWY +0.55%) aim to give investors exposure to large-cap U.S. growth stocks, but they do so by tracking different indexes and using distinct portfolio construction methods. This analysis examines their cost structures, recent performance, risk profiles, and portfolio characteristics to help investors weigh which fund ...

Key Points There are technology ETFs that specialize in artificial intelligence (AI), robotics, cloud computing, and more. However, the best way to invest $1,000 might be in a simple tech sector index fund. The Vanguard Growth ETF has a low expense ratio and lots of exposure to major tech companies. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › It's no secret that technology companies have been the primary driver of the stock market's excellent returns over the past ...

If you have decades to invest, you should consider this list of high-quality, low-fee Vanguard ETFs.Not only is Vanguard one of the largest and most widely-known money managers in the world, it's also one of the best. Its focus on broadly diversified fund offerings with razor-thin expense ratios makes it an ideal place for long-term investors to build out their portfolios.If you're looking to hold on to an exchange-traded fund (ETF) for a generation or more, it makes sense to look at stock funds first. Thei ...

Signs point to the market continuing to rally next year.Despite all the chatter about the stock market being overheated, the bull market just surpassed its third anniversary. History, meanwhile, gives a clear picture of what will happen next.According to data compiled by Carson Group, every bull market over the past 50 years that has made it to three years has continued until at least five years. There have been five bull markets in that span, with the shortest fizzling out after five years and the longest ...

Core Viewpoint - The S&P 500 is a strong long-term investment, but there are ETFs that are expected to outperform it in the coming year [1][2] Group 1: iShares Russell 2000 ETF - The S&P 500 has significantly outperformed the Russell 2000 index since the end of 2022, nearly doubling its gains [4] - The iShares Russell 2000 ETF is expected to outperform the S&P 500 in 2026 due to the broadening of gains in a maturing bull market [6] - The Russell 2000 ETF is currently trading at a price-to-earnings ratio of 18.3, which is nearly 40% cheaper than the Vanguard S&P 500 ETF at 28.7 [7] Group 2: VanEck Semiconductor ETF - The VanEck Semiconductor ETF has increased by 44% year-to-date, significantly outperforming the S&P 500 [9] - Over the last decade, the VanEck Semiconductor ETF has surged by 1,180%, driven by the booming semiconductor sector [9] - The ETF is well-positioned for continued success, trading at a P/E ratio of 39.7, comparable to other tech-heavy ETFs [10] - Key holdings in the VanEck Semiconductor ETF include leading companies in the AI boom, such as Nvidia and Taiwan Semiconductor, which are experiencing substantial revenue growth [11]

Core Insights - The article emphasizes the importance of selecting the right exchange-traded funds (ETFs) for building substantial wealth over time with minimal effort [2] - It highlights three specific Vanguard ETFs that are recommended for investment in 2026, focusing on their potential for long-term growth [2] Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF (NYSEMKT: VOO) is presented as a solid investment choice for both new and experienced investors, containing 500 of the largest U.S. stocks [3] - This ETF offers instant diversification across various sectors, which helps reduce volatility and risk, particularly due to its focus on large-cap stocks [4] Vanguard Growth ETF - The Vanguard Growth ETF (NYSEMKT: VUG) is suggested for investors seeking above-average returns, with an average annual return of 17.22% over the past decade, compared to 14.58% for the S&P 500 ETF [6] - While it carries more risk due to its narrower focus on growth stocks (only 160 stocks), it is still considered a viable option for those wanting higher returns while investing in large-cap stocks [7]

Core Insights - The Vanguard Growth ETF (VUG) and Invesco QQQ Trust (QQQ) are both popular choices for investors seeking exposure to U.S. large-cap growth stocks, with VUG offering lower fees and broader diversification compared to QQQ [1][2] Cost and Size Comparison - VUG has an expense ratio of 0.04%, significantly lower than QQQ's 0.20%, which translates to $4 versus $20 in fees per $10,000 invested annually [3][8] - As of December 2025, VUG has $353 billion in assets under management (AUM), while QQQ has $403 billion [3] Performance Metrics - Over the past year, VUG returned 14.4% while QQQ returned 16.6% [3] - The maximum drawdown over five years for VUG was -35.61%, compared to -35.12% for QQQ [4] - A $1,000 investment in VUG would have grown to $1,984 over five years, while the same investment in QQQ would have grown to $2,033 [4] Holdings and Sector Allocation - QQQ tracks the NASDAQ-100 Index and holds 101 stocks, with a sector allocation of 55% technology, 17% communication services, and 13% consumer cyclical [5] - VUG holds 160 stocks with a similar sector tilt: 53% technology, 14% communication services, and 14% consumer cyclical [6] Investment Considerations - Both ETFs have a strong tilt towards technology and contain similar top holdings, but VUG's greater diversification may appeal to investors seeking reduced volatility [7][9] - The choice between VUG and QQQ largely depends on the investor's preference for diversification versus potential higher returns, as both funds have shown similar earnings over the last five years [10]

The right investment can protect your portfolio regardless of what's ahead for the market.As we head into 2026, many Americans are feeling conflicted about the future.A recent survey from financial association MDRT found that around 80% of U.S. adults are at least slightly concerned about a recession. However, just over 44% of investors still feel optimistic about the stock market's next six months, according to the most recent weekly survey from the American Association of Individual Investors.So what shou ...

Core Insights - The article discusses the potential for index ETFs to be a significant part of an investor's portfolio, particularly focusing on small-cap, value, and growth ETFs for 2026 [1] Small-Cap ETFs - There is an increasing belief that small-cap stocks will outperform in 2026, following a period of strong performance over the past six months, despite trailing large-cap stocks previously [2][3] - The Federal Reserve's anticipated rate cuts are expected to benefit small-cap companies more significantly, as lower borrowing costs can stimulate domestic demand [3] Value ETFs - The market has seen growth stocks lead, but there is speculation that 2026 could be the year for value stocks to outperform due to investor nervousness and potential economic benefits from lower rates and tariff reversals [5][6] - Recommended value ETFs include the Vanguard 500 Value ETF and the Schwab U.S. Dividend Equity ETF, which focus on value stocks and companies with strong financials and dividend histories [7] Growth ETFs - Large-cap growth stocks have been dominant in the market, particularly those associated with AI, and this trend may continue as AI technology develops [8] - Key growth ETFs include the Vanguard Growth ETF, Vanguard Mega Cap Growth ETF, and Invesco QQQ ETF, which have shown strong performance relative to the broader market [9] Investment Recommendations - The Vanguard Mega Cap Growth ETF is highlighted as a top choice for 2026, given its concentration in leading AI stocks, which are expected to continue driving market performance [12]

Group 1 - December is typically a favorable month for stocks, making it an opportune time for investors to enter the market, despite concerns about investing near all-time highs [1] - J.P. Morgan's analysis indicates that from 1980 to 2020, approximately 40% of stocks experienced negative returns, and only about 13% of actively managed funds outperformed the S&P 500 index over the past decade [2] - For novice investors, starting with an exchange-traded fund (ETF) is recommended, as it provides an instant portfolio that tracks a stock market index [3] Group 2 - Building wealth requires more than just investing in one or two index ETFs; employing a dollar-cost averaging strategy is essential, which involves investing a fixed amount monthly regardless of market conditions [5] - The occurrence of all-time highs in the market is not rare, happening on about 7% of trading days, and waiting for pullbacks can result in missed opportunities for gains [6] - The Vanguard S&P 500 ETF (NYSEMKT: VOO) is highlighted as a strong investment option due to its low expense ratio of 0.03% and its close correlation with the S&P 500 index [7]