Core Viewpoint - The Vanguard Growth ETF and the Invesco QQQ Trust are expected to outperform the S&P 500 in 2026, driven by the continued strength of megacap technology stocks [1][4]. Group 1: Vanguard Growth ETF - The Vanguard Growth ETF is designed to capitalize on large-cap growth stocks, tracking the CRSP US Large Cap Growth Index, which represents the growth segment of the S&P 500 [5]. - The ETF's top 10 holdings constitute over 60% of its portfolio, with more than 60% of its holdings in technology stocks, compared to less than 40% for the S&P 500 [6]. - Over the past decade, the Vanguard Growth ETF has generated an average annual return of 18%, significantly outperforming the S&P 500's 15.3% return, resulting in a difference of approximately $10,800 on a $10,000 investment [7]. Group 2: Invesco QQQ Trust - The Invesco QQQ Trust tracks the Nasdaq-100, focusing on the largest non-financial companies on the Nasdaq exchange, with over 60% of its assets in technology [8]. - The fund's structure allows it to reward high-performing stocks like Nvidia and Microsoft, increasing their weight in the ETF without rebalancing, thus enhancing returns [9]. - The Invesco QQQ Trust has achieved an annual return of around 20.3% over the past decade, with a $10,000 investment growing to approximately $63,600, and it has outperformed the S&P 500 more than 87% of the time on a 12-month rolling basis [10].

Key Points The Invesco QQQ has consistently outperformed the S&P 500 over time. The Vanguard Growth ETF gives investors a heavy concentration in top AI stocks. The Global X Artificial Intelligence & Technology ETF also includes top non-U.S. AI stocks. 10 stocks we like better than Invesco QQQ Trust › Another standoff in Washington has led to a government shutdown, but investors have seen this movie before and know the market rarely cares for long. In fact, this time around, the market seems to ha ...

Group 1 - The market is currently driven by growth stocks, with artificial intelligence (AI) being a significant focus for investors [1] - Investing in growth-oriented exchange-traded funds (ETFs) is recommended over individual AI stocks for those starting out, as it provides a diversified portfolio [2] - Consistent investment through dollar-cost averaging is essential for wealth building, and ETFs facilitate this strategy effectively [3] Group 2 - The Invesco QQQ Trust has provided a 19.4% average annual return over the past decade, outperforming the S&P 500 significantly [6] - The Vanguard Growth ETF has a strong performance with a 17.1% yearly return over the past 10 years, heavily weighted in tech stocks, including major AI companies [8] - The Vanguard Information Technology ETF focuses exclusively on technology stocks, with its top three holdings (Nvidia, Microsoft, and Apple) comprising about 44% of its portfolio [10]

Core Insights - The article emphasizes the importance of not waiting for market dips to invest, as missing key rebound days can significantly reduce returns [1][2] - Dollar-cost averaging is highlighted as a strategy to mitigate emotional decision-making and market timing challenges, encouraging regular investment [3] ETF Recommendations - **Vanguard S&P 500 ETF**: This ETF tracks the S&P 500 index, providing broad market exposure with a 14.6% annualized return over the last decade, making it a strong choice for long-term wealth compounding [5][6] - **Vanguard Growth ETF**: Focused on large-cap growth stocks, this ETF has over 60% of its holdings in the tech sector and has achieved a 17.1% average annual return over the past 10 years, appealing to investors interested in growth and AI stocks [8][9] - **Invesco QQQ Trust**: Tracking the Nasdaq-100, this ETF has a heavy concentration in technology, delivering a 19.4% average annual return over the last decade, making it a strong performer compared to the S&P 500 [10][11] - **Schwab U.S. Dividend Equity ETF**: This ETF focuses on companies with strong cash flow and dividend growth, currently yielding close to 4% and returning about 12.3% annually over the last decade, providing a balance to growth-heavy portfolios [12][13]

Group 1 - The Vanguard Growth ETF (NYSEMKT: VUG) is recommended as a compelling growth investment option before the end of 2025, offering diversification compared to individual growth stocks [1][2] - The ETF has shown impressive long-term performance, with a 5-Year Average Annual Return of 16.69%, a 10-Year Average Annual Return of 17.25%, and a 15-Year Average Annual Return of 16.90%, outperforming the SPDR S&P 500 ETF [3] - The Vanguard Growth ETF holds over 300 stocks, with significant investments in major tech companies such as Nvidia (12.64%), Microsoft (12.18%), and Apple (9.48%), among others [4][5] Group 2 - The ETF is characterized as a powerful growth-oriented investment, providing exposure to a broad range of high-powered tech stocks, making it a preferable option over selecting individual stocks [5][6] - Despite its potential, the ETF's growth stocks can be volatile, and a long-term investment strategy is recommended for optimal results [6] - The Motley Fool Stock Advisor has identified 10 stocks that they believe are better investment opportunities than the Vanguard Growth ETF, suggesting that investors should consider these alternatives [7]

Group 1: Market Trends - Growth stocks are currently leading the market, driven significantly by advancements in artificial intelligence (AI) [3] - The Nasdaq Composite index has been the best-performing broad-based index this year, continuing a trend of outperforming the S&P 500 [5] - A J.P. Morgan study indicates that the market hits new highs approximately 7% of the time, with investors often missing lower prices [2] Group 2: Investment Strategies - Dollar-cost averaging is recommended as a strategy to consistently invest regardless of market conditions, which helps in building long-term wealth [2] - Investing in growth ETFs is highlighted as an effective way to capitalize on current market trends [1][4] Group 3: Specific ETFs - The Invesco QQQ Trust (QQQ) has delivered a total return of over 490% in the past decade, significantly outperforming the S&P 500 [7] - The Vanguard Growth ETF (VUG) has achieved an average annual return of 17.1% over the past decade and 25% over the last three years [9] - The Vanguard Information Technology ETF (VGT) has generated an average annual return of 22% over the past ten years, with a 26.8% return over the last three years [12]

Vanguard Value ETF is heading for an up year in 2025, but the real reason to buy it is that it isn't up as much as its growth counterpart or the S&P 500.Vanguard Value ETF (VTV 0.37%) is up around 8% so far in 2025. From a historical perspective, that's not a bad showing, given that investors generally expect the S&P 500 index to provide a 10% return, on average, each year.But Vanguard Value ETF is lagging well behind the broader market in 2025. Does that make it a bad investment idea or the right one for y ...

Core Insights - Vanguard Growth ETF (VUG) has shown a remarkable gain of over 28% in the past year, positioning it as a potential cornerstone for modern portfolios [2][11] - The fund's strategy focuses on tracking the CRSP US Large Cap Growth Index, targeting companies with strong growth potential and high returns on assets [3][12] - VUG's top holdings include major players like NVIDIA (12.65%), Microsoft (12.19%), and Apple (9.49%), reflecting a significant concentration in the technology sector, which constitutes 49.1% of its assets [4][5] Performance Metrics - Over the past decade, VUG has generated an average annualized return of over 17%, consistently outperforming the S&P 500 [8] - The fund has a Sharpe ratio indicating superior risk-adjusted returns, showcasing its ability to capitalize on market momentum [9] - VUG operates with an ultra-low expense ratio of 0.04%, allowing a larger portion of returns to remain with investors [9][10] Investment Proposition - VUG combines a forward-looking portfolio of market leaders with a proven track record of high, risk-adjusted returns, making it a compelling investment option [12] - The fund is well-positioned for investors with a multi-year horizon who are optimistic about American innovation, serving as a strong candidate for a core holding [13]

Market Performance - The S&P 500 has risen approximately 11% year to date and nearly 30% since early April, with a 4.2% increase in August and continued momentum into September, indicating a favorable environment for growth-oriented funds [1] - The S&P 500 Growth Index has delivered a strong return of 28.8% over the past year, significantly outperforming the S&P 500 Value Index, which gained 4.97% [2] - The S&P 500 reached a new record high, marking its 21st record close of the year, driven by the increasing likelihood of an interest rate cut by the Fed [3] Economic Indicators - Markets anticipate a 99.7% likelihood of a rate cut in September, 99.8% in October, and a 100% probability in December, according to the CME FedWatch tool [4] - August's ISM Non-Manufacturing PMI registered at 52.0, exceeding expectations and indicating continued growth in the services sector, which plays a crucial role in overall economic growth [6] Analyst Forecasts - HSBC raised its forecast for the S&P 500 to 6,500 from 6,400 for the end of 2025, supported by robust second-quarter earnings and modest tariff impacts, with other major brokerages also setting their year-end target at 6,500 [5] Investment Opportunities - Several growth-focused ETFs are highlighted for potential investment, including: - Vanguard Growth ETF (VUG) with an asset base of $184.99 billion, an annual fee of 0.04%, and a 3.76% gain over the past month [8][9] - iShares Russell 1000 Growth ETF (IWF) with an asset base of $115.53 billion, an annual fee of 0.18%, and a 3.76% gain over the past month [10][11] - iShares S&P 500 Growth ETF (IVW) with an asset base of $62.56 billion, an annual fee of 0.18%, and a 3.41% gain over the past month [12][13] - SPDR Portfolio S&P 500 Growth ETF (SPYG) with an asset base of $39.92 billion, an annual fee of 0.04%, and a 3.42% gain over the past month [14][15] - iShares Core S&P U.S. Growth ETF (IUSG) with an asset base of $24.22 billion, an annual fee of 0.04%, and a 3.36% gain over the past month [16][17]

Core Viewpoint - The stock market is approaching all-time highs with stretched valuations, suggesting it may be time to incorporate more value investments into portfolios [1] Group 1: Market Valuation - The Vanguard S&P 500 ETF has an average price-to-earnings (P/E) ratio of 27.6, indicating high valuations driven by enthusiastic investors [2][8] - The S&P 500 index's average price-to-book (P/B) ratio is 5, with large growth stocks, particularly in technology, contributing to these elevated metrics [8] - The Vanguard Growth ETF has an even higher P/E ratio of 39.4 and a P/B ratio of 12.1, further illustrating the growth-focused market environment [8] Group 2: Vanguard Value ETF - The Vanguard Value ETF tracks the CRSP US Large Cap Value Index, focusing on large companies categorized as "value" based on various financial metrics [3][5] - The ETF's average P/E ratio is 19.6 and average P/B ratio is 2.8, presenting a more reasonable valuation compared to the broader market [9][10] - The Vanguard Value ETF offers a low expense ratio of 0.04%, making it an attractive option for investors looking to mitigate risks associated with high growth valuations [11] Group 3: Investment Strategy - Investors may feel uncomfortable with current market valuations, but incorporating value investments like the Vanguard Value ETF can provide a counterbalance to growth-heavy portfolios [9][10] - The current market trend favors growth stocks, suggesting a potential shift towards value investments could be prudent [11]