Top-performing Vanguard fund, Russell 1000 Growth ETF, impresses investors with strong performance

From Nasdaq: 2024-10-08 04:15:00

Exchange-traded funds (ETFs) have made investing easier for investors by providing diversified portfolios at low costs. Vanguard, known for its investor-friendly practices, offers a wide range of funds covering various market sectors. One such fund, the Vanguard Russell 1000 Growth ETF, has impressed growth-oriented investors with its strong performance, outperforming the S&P 500.
The Vanguard Russell 1000 Growth ETF tracks the Russell 1000 Growth Index, consisting of large-cap U.S. growth stocks. With a year-to-date return of 23.6% and a total return of 357.6% over the past 10 years, the fund has been a top performer. Its tech-heavy portfolio includes major holdings in companies like Apple, Microsoft, and Nvidia.
The fund’s tech concentration, with nearly 60% of assets in technology stocks, poses a concentration risk. However, given the advancements in artificial intelligence and technology, the sector’s outlook remains positive. With a low expense ratio of 0.08% and minimal turnover rate of 14.4%, the Vanguard Russell 1000 Growth ETF offers cost-efficient and tax-friendly investing options.
Although the Vanguard Russell 1000 Growth ETF presents a strong case for growth-oriented investors with its performance and low fees, its heavy tech concentration and high valuation metrics introduce risk factors to consider. While it may continue outperforming, investors should be aware of potential volatility due to its tech exposure and premium valuation.



Read more at Nasdaq: Is This Top-Performing Vanguard Fund Still a Buy?