The Vanguard Growth ETF (VUG) focuses on a growth investment strategy for investors who are willing to accept additional risk. This Vanguard fund holds $16.4 billion in assets under management and has a low expense ratio of 0.09%, which is 92% less than the average cost of similar funds with other providers.
VUG specifically tracks the performance of an index of large-capitalization growth stocks. The ETF’s holdings are approximately in the same proportional weighting as those of the index it attempts to mirror. So far in 2014, VUG has gained 12.86%. This fund also offers a dividend yield of 1.17%.
VUG has hefty weightings in technology, 25.74%; consumer cyclical, 17.23%; and healthcare, 12.94%. Its top 10 holdings account for 23.01% of its total assets. These holdings include Apple Inc. (AAPL), 7.11%; the Coca-Cola Company (KO), 1.98%; Google Inc. (GOOGL), 1.96%; Gilead Sciences, Inc. (GILD), 1.90%; and Facebook, Inc. (FB), 1.88%.
This ETF seeks to match the performance of the large-cap growth segment of the U.S. equity market. Vanguard Growth ETF (VUG) provides a simple and comparatively inexpensive way to invest in this market.
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In case you missed it, I encourage you to read my e-letter column from last week about Vanguard’s dividend-yield-focused ETF. I also invite you to comment in the space provided below.