Stocks are categorized into growth, value, and dividend providers. Growth stocks show faster revenue and earnings growth, value stocks trade at low valuations, and dividend stocks offer consistent income.

Investing in a growth ETF like Vanguard Growth ETF (VUG) with $1,000 can provide exposure to large-cap companies with industry-leading growth rates and stability.

VUG is tech-heavy, with the tech sector accounting for 62.1% of the ETF. Its top holdings include Nvidia, Microsoft, Apple, and Amazon.

VUG has historically outperformed the S&P 500, with a 353% increase in the past decade compared to S&P 500’s 225%. Past performance doesn’t guarantee future results, but VUG may continue to outperform the market.

Consider diversifying your portfolio with VUG but be aware of overlap with other stocks or ETFs. The main reason to invest in a growth ETF is to potentially outperform the broader market, and VUG has historically done so.

The Motley Fool Stock Advisor team has identified 10 best stocks to buy now, and Vanguard Growth ETF wasn’t one of them. Past recommendations like Netflix and Nvidia have shown significant returns.

Ensure to conduct thorough research and consult with financial advisors before making investment decisions.

Read more at Yahoo Finance: The Smartest Growth ETF to Buy With $1,000 Right Now