The Vanguard Growth ETF (VUG) is a prominent exchange-traded fund that offers investors exposure to large-cap U.S. growth stocks. As of February 8, 2025, VUG is trading at $418.82, reflecting a slight decrease of 0.01% from the previous close.

Fund Overview

Launched on January 26, 2004, VUG seeks to replicate the performance of the CRSP US Large Cap Growth Index, which encompasses large-cap companies exhibiting strong growth characteristics. The fund boasts assets under management exceeding $153 billion, positioning it among the largest ETFs in its category.

Sector Allocation and Top Holdings

VUG’s portfolio is heavily weighted towards the Information Technology sector, accounting for approximately 46.8% of its holdings. Consumer Discretionary and Telecommunications sectors follow, rounding out the top three allocations. The fund’s top holdings include industry leaders such as Apple Inc. (11.52%), NVIDIA Corp., and Microsoft Corp. Collectively, the top ten holdings represent about 56.78% of the fund’s total assets.

Performance Metrics

Over the past year, VUG has delivered a return of approximately 30.27%. The fund’s beta stands at 1.12, indicating a slightly higher volatility compared to the broader market. Its standard deviation over the trailing three-year period is 23.15%, reflecting moderate risk within its investment space.

Analyst Insights

Analysts maintain a favorable outlook on VUG, with a consensus rating of “Strong Buy.” The average 12-month price target is $479.29, suggesting potential upside from its current price. This optimism is underpinned by the fund’s strategic focus on high-growth sectors and its inclusion of companies with robust earnings trajectories.

Expense Ratio and Dividend Yield

VUG is recognized for its cost-efficiency, featuring an annual operating expense ratio of 0.04%, which is competitive within the ETF landscape. The fund offers a 12-month trailing dividend yield of 0.47%, providing investors with a modest income stream alongside capital appreciation potential.

Conclusion

The Vanguard Growth ETF presents a compelling opportunity for investors aiming to gain exposure to large-cap growth stocks in the U.S. market. Its diversified portfolio, strong performance history, and low expense ratio make it an attractive option for those seeking growth-oriented investments.

Please note that past performance is not indicative of future results. It’s essential to consider your individual financial situation and consult with a financial advisor before making investment decisions.