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The Vanguard Growth ETF (VUG) focuses on a growth investment strategy for investors who are willing to accept additional risk.

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Large-Cap Vanguard Fund Seeks Growth

The Vanguard Growth ETF (VUG) focuses on a growth investment strategy for investors who are willing to accept additional risk.

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 ETFâ??s holdings are approximately in the same proportional weighting as those of the index it is based on. So far in 2014, VUG has gained 12.86%. This fund also offers a dividend yield of 1.17%.

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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 represents the large-cap part 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 on Eagle Daily Investor about Vanguard’s dividend-yield-focused ETF. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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