"When you look at the most popular ETFs among retail investors, you'll find Vanguard Growth Index Fund ETF Shares (NYSEARCA:VUG) near the top of the list. With $349.9 billion in assets and a 0.04% expense ratio, it offers cheap exposure to the companies driving the modern economy. But before adding it to your portfolio, you need to understand what you're actually buying: a concentrated bet on a handful of mega-cap technology companies."
"VUG isn't a diversified growth fund in the traditional sense. NVIDIA, Apple, and Microsoft combine for 35.24% of the portfolio, while information technology alone represents 51.9% of holdings. This concentration works brilliantly when tech leads the market, but it also means sector-specific risk that can't be diversified away within this fund. The ETF has delivered for patient investors, returning 443% over the past ten years compared to the S&P 500's 272%."
Vanguard Growth Index Fund ETF Shares (VUG) holds $349.9 billion with a 0.04% expense ratio, providing low-cost exposure to growth-oriented companies. The fund is heavily concentrated in information technology: NVIDIA, Apple, and Microsoft account for 35.24% of assets and information technology represents 51.9% of holdings. VUG returned 443% over the past ten years versus the S&P 500's 272%, driven by major tech firms. Early 2026 interest-rate concerns prompted a rotation to value and defensive names, leaving VUG vulnerable and trailing the broader market. The fund emphasizes capital appreciation, suits long-term investors tolerating higher volatility, and yields 0.38%.
Read at 24/7 Wall St.
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