Vanguard Growth ETF (VUG) offers exposure to Large Cap Growth segment, with 24.90% return this year.

From Nasdaq: 2024-07-08 10:19:31

The Vanguard Growth ETF (VUG) offers exposure to the Large Cap Growth segment of the US equity market. With assets over $138.81 billion, it is one of the largest ETFs in this category. It has a low expense ratio of 0.04% and a 12-month trailing dividend yield of 0.49%.

Large Cap Growth companies, with market capitalization over $10 billion, are known for stable cash flows. Growth stocks offer higher-than-average sales and earnings growth rates but come with higher valuations and risks. Despite this, they tend to outperform value stocks in strong markets but underperform in others.

VUG has a heavy allocation to the Information Technology sector at 43.50%. Top holdings include Microsoft Corp (MSFT), Apple Inc (AAPL), and Nvidia Corp (NVDA). The fund seeks to match the CRSP U.S. Large Cap Growth Index and has returned approximately 24.90% this year.

With a beta of 1.12 and standard deviation of 22.82%, VUG presents medium risk. It holds a Zacks ETF Rank of 2 (Buy) and is a great option for investors seeking Large Cap Growth exposure. Alternatives in the space include iShares Russell 1000 Growth ETF (IWF) and Invesco QQQ (QQQ).

Zacks experts have identified a little-known chemical company with explosive growth potential. It has soared 65% over the last year and is backed by strong earnings estimates. This company could potentially surpass previous stocks like Boston Beer and NVIDIA that doubled in value.



Read more at Nasdaq: Should Vanguard Growth ETF (VUG) Be on Your Investing Radar?