Vanguard's index funds, including VOOG and VONG, outperformed the S&P 500 in 2024 and may continue in 2025
From Nasdaq: 2025-01-06 04:30:00
Vanguard founder John Bogle revolutionized investing with the introduction of the first index fund in 1976. Vanguard now offers a wide range of low-cost investment options and is one of the largest asset managers globally. In 2024, Vanguard’s S&P 500 Growth ETF (VOOG) saw a 35% return, outperforming the market.
The Vanguard Russell 1000 Growth ETF (VONG) also performed well in 2024, with a 32% return. Both funds exceeded the S&P 500’s 23% gain. With a focus on growth stocks and heavy exposure to technology, these Vanguard index funds are positioned for potential market-beating returns in 2025.
Investing in artificial intelligence (AI) could drive growth for technology stocks and funds like Vanguard’s S&P 500 Growth ETF and Russell 1000 Growth ETF. Grand View Research forecasts a 36% annual increase in AI spending through 2030, supporting the potential for continued outperformance in the technology sector.
The Vanguard S&P 500 Growth ETF has been a strong performer over the past decade, returning 310% with an expense ratio of 0.1%. In comparison, the broader S&P 500 returned 242%. The fund’s focus on technology stocks like Apple, Nvidia, and Microsoft has contributed to its success.
The Vanguard Russell 1000 Growth ETF has also delivered impressive returns, outperforming the S&P 500 with a 367% gain over the last decade. With an expense ratio of 0.08% and a concentration on technology and consumer discretionary sectors, this index fund offers a cost-effective way to invest in growth stocks.
Consider the potential for strong returns with Vanguard index funds like the S&P 500 Growth ETF. The Motley Fool’s Stock Advisor service offers insights on top-performing stocks, providing a roadmap for successful investing. Past recommendations have yielded significant returns, highlighting the value of expert guidance in building a profitable portfolio.
Read more at Nasdaq: Prediction: The 2 Best Vanguard Index Funds of 2024 Will Beat the S&P 500 Again in 2025