Vanguard ETF Seeks Growth in Large-Cap Stocks

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.
[happy investor up arrows]

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.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

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.

Exclusive  Tangled Up In Capitulation   
share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor