As certainly one of the leading providers of ETFs, Vanguard has lots to supply growth investors.
Vanguard has been the most well-liked option for ETFs up to now within the 2024. Vanguard ETFs have had probably the most inflows year-to-date of any fund family, and the corporate is closing the gap on the world’s largest ETF manager, BlackRock (NYSE:BLK).
Through July 5, in response to ETF.com, Vanguard has had $124.7 billion net inflows into its ETFs, greater than every other shop, including BlackRock, which has had $100.3 billion in net inflows because the start of the 12 months.
Vanguard now has $2.68 trillion in ETF assets under management, second only to BlackRock at $2.86 trillion.
The corporate currently offers 86 different ETFs covering a spread of investment styles and classes. Its growth ETFs have been in high demand this 12 months — and these are the three of the perfect Vanguard ETFs for growth investors.
Vanguard Information Technology ETF
The Vanguard Information Technology ETF (NYSEARCA:VGT) has been the perfect long-term performer within the Vanguard ETF family.
Over the past 10 years, this Vanguard ETF has had a mean annual return of 21% per 12 months, as of June 30. That beats the Nasdaq 100, the Nasdaq Composite and the S&P 500 over the identical period. Yr-to-date it has returned 24%, which also beats the benchmarks, and since inception in 2004 it has a mean annualized return of 13.6%.
The ETF tracks the performance of the MSCI US Investable Market Index/Information Technology 25/50, which is comprised of huge, mid-, and small-cap stocks inside the data technology sector, as classified under the Global Industry Classification Standard (GICS). That features hardware, software, communications equipment, and semiconductor corporations, amongst others.
It currently holds 321 stocks and its top three positions are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and NVIDIA (NASDAQ:NVDA). It has a mean P/E ratio of 36, and, as is customary of most Vanguard ETFs, it has a low expense ratio of 0.10%.
Vanguard Russell 1000 Growth ETF
The Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) is one other stellar growth ETF from Vanguard. Because the name suggests, it tracks growth stocks throughout the Russell 1000 index, which suggests it includes each large- and mid-cap growth stocks, across sectors.
The ETF holds some 442 growth stocks, with a mean P/E ratio of 32. Some 55% of the portfolio is in technology stocks, followed by consumer discretionary stocks at 18% and healthcare stocks at 10%.
The highest three holdings are the large three — Microsoft, Apple, and NVIDIA, nevertheless it is more broadly diversified than the Vanguard Information Technology ETF.
During the last 10 years, it has had a mean annualized return of 16.2% as of June 30. Yr-to-date, the ETF has returned 25.4% and it has generated a mean annualized return of 16.8% since inception in 2010. It also has a low expense ratio of just 0.08%.
Vanguard Mega Cap Growth ETF
The Vanguard Mega Cap Growth ETF (NYSEARCA:MGK) is perhaps considered Vanguard’s answer to the favored Invesco QQQ (NASDAQ:QQQ), which tracks the Nasdaq 100.
The Vanguard Mega Cap Growth ETF doesn’t mirror the Nasdaq 100, nevertheless it is similarly targeting large-cap tech stocks. It follows the CRSP US Mega Cap Growth Index, which incorporates the 78 largest growth stocks on U.S. Markets, with a median market cap of $1.8 trillion.
About 61% of the portfolio is in technology stocks, while 20% is in consumer discretionary names and seven% is in healthcare. So, after all, the three largest holdings are going to be similar to the opposite two funds on this list. However the difference is that this ETF is way more concentrated, with just 78 holdings, so the returns may very well be more volatile within the short term. The typical P/E ratio is 38, which is higher than the opposite two.
However it has had excellent returns over the long run, posting a mean annualized return of 16.2% over the past 10 years. This tops the S&P 500 and Nasdaq Composite over that stretch but falls just wanting the Nasdaq 100.
Nevertheless, year-to-date and over the past one-year period ended July 10, it has been the perfect performer among the many Vanguard growth ETFs. It has returned 26% YTD and an enormous 41% for the one-year period ended July 10. Further, it has a miniscule expense ratio of 0.07%.
Great long-term options
You actually can’t go fallacious with any of those excellent growth funds. Nevertheless, be mindful that they’re long-term investments which will fluctuate wildly from 12 months to 12 months, depending available on the market. But over time, the highs have outweighed the lows, which shows within the stellar long-term performance for every of those ETFs.
Investors should know, nonetheless, that some of these aggressive growth funds should only be a fraction of a bigger, diversified portfolio that is correctly balanced to navigate market volatility and perform well over time.