Latest news with #IndexFunds
Yahoo
10-08-2025
- Business
- Yahoo
1 Top Vanguard Fund That Could Turn $270 a Month Into $1 Million
Key Points The Vanguard Growth Index Fund ETF can be an ideal investment option if you want to track the best growth stocks. Over the past five years, the fund has outperformed the S&P 500. Investing regularly into the ETF can lead to some terrific gains in the long run. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › A good way to build up and create a portfolio worth at least $1 million is by investing a regular amount each month. Rather than needing to save up a big lump sum and then investing, you can steadily add to your position over time. This also avoids the temptation of trying to time the market and worrying about whether it's a good time to invest. By investing in exchange-traded funds (ETFs), you can also minimize your risk over the long term, since you can have a position in not only multiple stocks but dozens and even hundreds of them, all through just a single investment. Vanguard has many solid ETFs that can be suitable for growth investors, as they charge low fees and offer some great diversification. One particularly attractive Vanguard fund that I'm going to focus on is the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). As its name suggests, it focuses on growth. And below, I'll show you how investing $270 each month into this ETF can potentially put you on track to creating a million-dollar portfolio. Why the Vanguard Growth Index Fund is an ideal option for growth investors There are a lot of ETFs to choose from in the markets, which can make it overwhelming and challenging to try to find the right one for you. But two things you'll want to consider are costs and quality. Identifying low-cost funds is easy, as that can be measured through the ETF's expense ratio; anything less than 0.1% is pretty low. The Vanguard Growth Index Fund has an expense ratio of 0.04%, making it an incredibly cheap option. By keeping your fees minimal, you can ensure unnecessary costs aren't chipping away at your gains over the years. The more challenging criterion is the quality of the ETF. After all, what good is a low-cost fund if it invests in stocks that you don't want? This is where targeting Vanguard ETFs is important. Those ETFs are among the best and most well-diversified investments to choose from. The Vanguard Growth Index ETF tracks the best growth stocks in the country. There are 165 stocks in the fund (as of June 30), and its top holdings are highly recognizable names that you'll likely be very familiar with -- Microsoft, Meta Platforms, Tesla, and many other top stocks. These companies are all focused on growing their businesses. With well over 100 holdings, the Vanguard fund does a great job of diversifying, but not so much that your exposure to individual stocks is minimal. Over the past five years, the Vanguard fund has outperformed the S&P 500, with its total returns (which include dividends) coming in at 112%, versus 106% for the broad index. How the Vanguard Growth Fund can grow a $270-per-month investment into $1 million The Vanguard Growth ETF can be an ideal investment to put money into on a regular basis because of its potential to outperform the market. And that can be key in generating strong returns. With the S&P 500 at record levels, it may be due to underperforming its long-run average of 10% in the future. But by focusing on growth stocks, you might still be able to generate those kinds of gains. And if your investment increases by an average of 10% per year, here's how large a $270-per-month investment in the VUG ETF might grow to be in the long run. Year Investment Value 5 $21,082 10 $55,769 15 $112,840 20 $206,738 25 $361,230 30 $615,418 35 $1,033,635 40 $1,721,731 Calculations and table by author. It can take approximately 35 years before monthly investments into the fund are able to build up a balance worth over $1 million. It's a long time frame, but it's also without making any large lump sum investments along the way. If you can do that, then you can potentially get to the $1 million mark a lot earlier, depending on the size of any additional investments. Your actual annual return may vary, but the key thing to remember is that by investing in quality growth stocks, you can put yourself in a position to achieve market-beating returns. And while there may be bad years along the way, if you're willing to stay invested over the long haul, the payoff can be well worth it. Should you buy stock in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Top Vanguard Fund That Could Turn $270 a Month Into $1 Million was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
09-08-2025
- Business
- Yahoo
Is the Vanguard Value ETF the Simplest Way to Consistently Collect More Passive Income Than the S&P 500?
Key Points The Vanguard Value ETF has a much lower valuation than the Vanguard S&P 500 ETF. The Value ETF is a wealth compounder first and a passive income tool second. The ETF can be an effective tool for investors who don't want to amplify their exposure to mega-cap growth stocks. 10 stocks we like better than Vanguard Index Funds - Vanguard Value ETF › The S&P 500 (SNPINDEX: ^GSPC) has historically been a fantastic way to compound wealth -- generating annualized total returns of 9% to 10%. The proliferation of low-cost index funds and exchange-traded funds (ETFs) has made it easier than ever to invest in the S&P 500 without racking up high fees. The Vanguard S&P 500 ETF (NYSEMKT: VOO) -- one of the largest S&P 500 index funds by net assets -- has an expense ratio of just 0.03% -- or 3 cents for every $100 invested. When I first began investing, it was normal to see flat fees per stock trade of around $5 to $10. So fees and expense ratios are no longer a major drag on returns for investors who regularly pour their savings into equities. One issue with buying the S&P 500 is that it doesn't have a high yield. Today's top S&P 500 companies are growth stocks that have yields well below 1% or don't pay dividends at all -- a stark contrast to the days when the most valuable companies were oil and gas giants, industrials, or consumer staples behemoths with high yields. As a result, the yield of the S&P 500 has fallen to just 1.2%. What's more, the valuation of the S&P 500 has gotten more expensive as stock prices have outpaced earnings growth. Here's why investors looking to use passive income as a key way to achieve their financial goals may want to consider buying the Vanguard Value ETF (NYSEMKT: VTV) over the Vanguard S&P 500 ETF. A lower yield at a better valuation The Vanguard Value ETF sports an expense ratio of 0.04%, so it has just one cent more in annual fees per $100 invested than the Vanguard S&P 500 ETF. It also offers a full percentage point higher in 30-day SEC yield at 2.2% compared to 1.2% for the S&P 500 ETF. In addition to having a higher yield, the Value ETF sports a 19.6 price-to-earnings (P/E) ratio (as of June 30) and holds 335 stocks compared to a 27.2 P/E ratio (also as of June 30) and 505 holdings for the S&P 500 ETF. The Value ETF's higher yield and significantly lower valuation may appeal to investors looking to avoid paying a premium for the top stocks that are leading the S&P 500. A different cast of characters The Value ETF's higher yield and lower valuation result from its composition. Vanguard Value ETF Vanguard S&P 500 ETF Holding Rank Company Weighting Company Weighting 1 Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) 4% Nvidia (NASDAQ: NVDA) 7.3% 2 JPMorgan Chase (NYSE: JPM) 3.6% Microsoft (NASDAQ: MSFT) 7% 3 ExxonMobil (NYSE: XOM) 2.1% Apple (NASDAQ: AAPL) 5.8% 4 Walmart (NYSE: WMT) 2% Amazon (NASDAQ: AMZN) 3.9% 5 Procter & Gamble (NYSE: PG) 1.7% Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 3.5% 6 Oracle (NYSE: ORCL) 1.7% Meta Platforms (NASDAQ: META) 3.1% 7 Johnson & Johnson (NYSE: JNJ) 1.7% Broadcom (NASDAQ: AVGO) 2.5% 8 Home Depot (NYSE: HD) 1.7% Berkshire Hathaway 1.7% 9 AbbVie (NYSE: ABBV) 1.5% Tesla (NASDAQ: TSLA) 1.7% 10 Bank of America (NYSE: BAC) 1.4% JPMorgan Chase 1.5% Total 23.1% Total 38% Data source: Vanguard. Aside from Berkshire Hathaway and JPMorgan Chase, there are no other companies that overlap the top 10 holdings in the Value ETF and S&P 500 ETF. You'll also notice that the S&P 500 is much more top-heavy -- meaning that just a handful of names can move the index. Whereas the Value ETF is more balanced and not as dominated by just 10 companies. Far more than a passive income vehicle Over the last decade, the Value ETF has gone up 111.5% and has a total return of 173.5%. Meaning that capital gains have made up a much higher percentage of the total return than dividend income. The investment thesis centers around the companies it holds rather than being all about yield, a stark contrast to ETFs that prioritize passive income over upside potential. The JP Morgan Nasdaq Equity Premium ETF (NASDAQ: JEPQ) sells covered call options on the Nasdaq-100 as a way to generate income -- which provides a sizable stream of monthly payouts while capping the upside potential of the Nasdaq-100 moving higher. The fund sports an 11.2% 30-day SEC yield (as of June 30), so it could be a great way for investors who are primarily focused on passive income. However, the Value ETF offers a way to get a higher yield than the S&P 500 without having any cap on upside potential. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) doesn't use call options to achieve its high 3.9% yield. But many of its holdings are arguably lesser quality companies than what you'll find in the Value ETF. The Vanguard Value ETF remains a top fund to buy now The Value ETF is a good buy if you already own many of the top growth stocks in the S&P 500 and are looking to diversify your portfolio into different companies and boost your passive income. It's also a good option for investors who want to participate in the broader market and collect more passive income than the S&P 500. While there are plenty of ETFs that offer higher yields than the Value ETF, I would argue that the quality of companies in the ETF makes it one of the best ways to consistently collect more passive income than the index. Should you buy stock in Vanguard Index Funds - Vanguard Value ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia and Procter & Gamble. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Home Depot, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Oracle, Tesla, Vanguard Index Funds-Vanguard Value ETF, Vanguard S&P 500 ETF, and Walmart. The Motley Fool recommends Broadcom and Johnson & Johnson and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is the Vanguard Value ETF the Simplest Way to Consistently Collect More Passive Income Than the S&P 500? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
09-08-2025
- Business
- Globe and Mail
Is the Vanguard Value ETF the Simplest Way to Consistently Collect More Passive Income Than the S&P 500?
Key Points The Vanguard Value ETF has a much lower valuation than the Vanguard S&P 500 ETF. The Value ETF is a wealth compounder first and a passive income tool second. The ETF can be an effective tool for investors who don't want to amplify their exposure to mega-cap growth stocks. 10 stocks we like better than Vanguard Index Funds - Vanguard Value ETF › The S&P 500 (SNPINDEX: ^GSPC) has historically been a fantastic way to compound wealth -- generating annualized total returns of 9% to 10%. The proliferation of low-cost index funds and exchange-traded funds (ETFs) has made it easier than ever to invest in the S&P 500 without racking up high fees. The Vanguard S&P 500 ETF (NYSEMKT: VOO) -- one of the largest S&P 500 index funds by net assets -- has an expense ratio of just 0.03% -- or 3 cents for every $100 invested. When I first began investing, it was normal to see flat fees per stock trade of around $5 to $10. So fees and expense ratios are no longer a major drag on returns for investors who regularly pour their savings into equities. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » One issue with buying the S&P 500 is that it doesn't have a high yield. Today's top S&P 500 companies are growth stocks that have yields well below 1% or don't pay dividends at all -- a stark contrast to the days when the most valuable companies were oil and gas giants, industrials, or consumer staples behemoths with high yields. As a result, the yield of the S&P 500 has fallen to just 1.2%. What's more, the valuation of the S&P 500 has gotten more expensive as stock prices have outpaced earnings growth. Here's why investors looking to use passive income as a key way to achieve their financial goals may want to consider buying the Vanguard Value ETF (NYSEMKT: VTV) over the Vanguard S&P 500 ETF. A lower yield at a better valuation The Vanguard Value ETF sports an expense ratio of 0.04%, so it has just one cent more in annual fees per $100 invested than the Vanguard S&P 500 ETF. It also offers a full percentage point higher in 30-day SEC yield at 2.2% compared to 1.2% for the S&P 500 ETF. In addition to having a higher yield, the Value ETF sports a 19.6 price-to-earnings (P/E) ratio (as of June 30) and holds 335 stocks compared to a 27.2 P/E ratio (also as of June 30) and 505 holdings for the S&P 500 ETF. The Value ETF's higher yield and significantly lower valuation may appeal to investors looking to avoid paying a premium for the top stocks that are leading the S&P 500. A different cast of characters The Value ETF's higher yield and lower valuation result from its composition. Data source: Vanguard. Aside from Berkshire Hathaway and JPMorgan Chase, there are no other companies that overlap the top 10 holdings in the Value ETF and S&P 500 ETF. You'll also notice that the S&P 500 is much more top-heavy -- meaning that just a handful of names can move the index. Whereas the Value ETF is more balanced and not as dominated by just 10 companies. Far more than a passive income vehicle Over the last decade, the Value ETF has gone up 111.5% and has a total return of 173.5%. Meaning that capital gains have made up a much higher percentage of the total return than dividend income. The investment thesis centers around the companies it holds rather than being all about yield, a stark contrast to ETFs that prioritize passive income over upside potential. The JP Morgan Nasdaq Equity Premium ETF (NASDAQ: JEPQ) sells covered call options on the Nasdaq-100 as a way to generate income -- which provides a sizable stream of monthly payouts while capping the upside potential of the Nasdaq-100 moving higher. The fund sports an 11.2% 30-day SEC yield (as of June 30), so it could be a great way for investors who are primarily focused on passive income. However, the Value ETF offers a way to get a higher yield than the S&P 500 without having any cap on upside potential. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) doesn't use call options to achieve its high 3.9% yield. But many of its holdings are arguably lesser quality companies than what you'll find in the Value ETF. The Vanguard Value ETF remains a top fund to buy now The Value ETF is a good buy if you already own many of the top growth stocks in the S&P 500 and are looking to diversify your portfolio into different companies and boost your passive income. It's also a good option for investors who want to participate in the broader market and collect more passive income than the S&P 500. While there are plenty of ETFs that offer higher yields than the Value ETF, I would argue that the quality of companies in the ETF makes it one of the best ways to consistently collect more passive income than the index. Should you invest $1,000 in Vanguard Index Funds - Vanguard Value ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia and Procter & Gamble. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Home Depot, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Oracle, Tesla, Vanguard Index Funds-Vanguard Value ETF, Vanguard S&P 500 ETF, and Walmart. The Motley Fool recommends Broadcom and Johnson & Johnson and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
13-07-2025
- Business
- Yahoo
Investing in AmeriServ Financial (NASDAQ:ASRV) a year ago would have delivered you a 39% gain
Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. To wit, the AmeriServ Financial, Inc. (NASDAQ:ASRV) share price is 32% higher than it was a year ago, much better than the market return of around 12% (not including dividends) in the same period. That's a solid performance by our standards! On the other hand, longer term shareholders have had a tougher run, with the stock falling 20% in three years. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. AmeriServ Financial went from making a loss to reporting a profit, in the last year. When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements). We think that the revenue growth of 17% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). This free interactive report on AmeriServ Financial's balance sheet strength is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, AmeriServ Financial's TSR for the last 1 year was 39%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! It's good to see that AmeriServ Financial has rewarded shareholders with a total shareholder return of 39% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with AmeriServ Financial (at least 1 which is concerning) , and understanding them should be part of your investment process. We will like AmeriServ Financial better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
11-07-2025
- Business
- Yahoo
VTV Is a Great Choice for Most, but I Like the VUG ETF Better
The Vanguard Value ETF focuses on shares of seemingly undervalued companies that offer a margin of safety. The Vanguard Growth ETF offers its investors the potential to grow their portfolios at above-average rates. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › Exchange-traded funds (ETFs) have grown in popularity over the past decade or two, and for good reason. Just like mutual funds, they let you invest in a range of stocks (or other things) with one simple investment -- and they often sport lower expense ratios (annual fees), too. ETFs also make investing easy by trading like stocks throughout the day in the stock market. One particularly popular ETF is the Vanguard Value ETF (NYSEMKT: VTV). I do like it myself, but I'm a bit more jazzed by the Vanguard Growth ETF (NYSEMKT: VUG). Here's a look at both. See which one(s) you like. First, let's tackle performance. You can see how each has fared in the table below, and I'll include an also-excellent S&P 500 index fund, the Vanguard S&P 500 ETF (NYSEMKT: VOO), for comparison: ETF 5-Year Avg. Annual Return 10-Year Avg. Annual Return 15-Year Avg. Annual Return Vanguard Value ETF 15.11% 10.60% 12.31% Vanguard Growth ETF 16.77% 16.08% 16.77% Vanguard S&P 500 ETF 16.35% 13.54% N/A Sources: as of July 7, 2025. ETF = exchange-traded fund. Before you write off the Vanguard Value ETF because of its slower growth, keep reading. The ETF is offering a different proposition than the other ETFs. It's focused on value -- meaning it's not chasing high-flying stocks and buying them at sometimes inflated prices. Instead, it's focused on seemingly undervalued stocks, ones that offer a margin of safety. For anyone skittish about stocks in general, or just today, given that our economy is facing tariff complications, among other things, this ETF should provide some relief. If the market suddenly heads south (as it has always done every few years), value stocks will often drop less severely than their more richly valued counterparts. Here are some more things to know about the ETF: Its expense ratio is 0.04%, meaning it will charge you $4 per year for every $10,000 you have invested in the fund. It tracks the CRSP US Large Cap Value Index, which focuses on the less expensive stocks in the broad U.S. market. Its holdings are likely to sport relatively low valuations, more modest growth prospects, and significant dividend yields. (Its overall dividend yield was recently 2.2%.) It recently included 331 stocks, with an average price-to-earnings (P/E) ratio of 16.7. Its top 10 holdings made up 21% of its total assets (as of May 31), and here they are: Company Weight in Index Berkshire Hathaway 3.59% JPMorgan Chase 3.40% ExxonMobil 2.07% Walmart 2.03% Procter & Gamble 1.86% Johnson & Johnson 1.74% The Home Depot 1.71% AbbVie 1.53% Bank of America 1.34% Philip Morris International 1.31% Source: as of May 31, 2025. The Vanguard Growth ETF has an admirable track record, topping the other two ETFs above. Thus, many people, myself included, will be drawn to it, imagining our own portfolios growing at above-average rates. Still, it's important to remember that the stock market is volatile, and not every year will feature double-digit gains for this (or other) ETFs. Indeed, in market downturns, growth stocks can have further to fall. Check out how the ETFs fared in 2022 and 2023: ETF 2022 Return 2023 Return Vanguard Value ETF (2.07%) 9.32% Vanguard S&P 500 ETF (18.19%) 26.32% Vanguard Growth ETF (33.15%) 46.83% Sources: as of July 7, 2025. ETF = exchange-traded fund. There's a clear risk-and-reward trade-off there, right? That's why you might want to spread your dollars across several different kinds of ETFs to diversify by risk and return. Here are some more things to know about the Vanguard Growth ETF: Its expense ratio is also 0.04%. It tracks the CRSP US Large Cap Growth Index, which focuses on faster-growing stocks in the broad U.S. market. Its overall dividend yield was recently 0.45%. That's not surprising, as growth stocks tend to reinvest most of their excess earnings to further their growth. They're generally not generous dividend payers. It recently included 166 stocks, with an average P/E ratio of 31.2 -- roughly twice that of the value-oriented ETF. Its top 10 holdings made up a whopping 58% of its total assets (as of May 31), and here they are: Company Weight in Index Microsoft 11.32% Nvidia 10.30% Apple 10.08% Amazon 6.29% Meta Platforms 4.37% Broadcom 3.97% Tesla 3.32% Alphabet Class A 3.21% Alphabet Class C 2.59% Eli Lilly 2.21% Source: as of May 31, 2025. Clearly, that's a different bunch of companies, including all the "Magnificent Seven" -- Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Facebook parent Meta Platforms, and Tesla. If you would like to be part-owner of those companies -- and more than 150 others -- without having to buy into lots of companies, you might want to park some of your dollars in this ETF. So, really, both of these are solid, low-fee ETFs with a lot going for them. Think about which might serve you best. Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Selena Maranjian has positions in AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, Nvidia, Procter & Gamble, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Home Depot, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard Index Funds-Vanguard Value ETF, Vanguard S&P 500 ETF, and Walmart. The Motley Fool recommends Broadcom, Johnson & Johnson, and Philip Morris International and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. VTV Is a Great Choice for Most, but I Like the VUG ETF Better was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
