Average Daily Volume
1.78M
Fund Overview
The Vanguard Growth ETF (VUG) is an exchange-traded fund that seeks to track the performance of the CRSP US Large Cap Growth Index. This index measures the investment return of large-capitalization growth stocks in the United States. VUG provides investors with exposure to well-established companies that exhibit strong growth characteristics, such as above-average revenue and earnings growth. The fund is passively managed, offering a low-cost way to gain diversified exposure to the U.S. large-cap growth segment. With over $100 billion in assets under management, VUG is one of the largest and most liquid growth ETFs available.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.43 %
- Currency Hedged
-
No
- Portfolio Turnover
-
11 %
- Dividend Date
-
Why Invest in the VUG ETF?
Potential Benefits
- Provides diversified exposure to large-cap U.S. growth stocks, which have historically outperformed during economic expansions.
- Low expense ratio of 0.04% makes it one of the most cost-efficient growth ETFs available.
- Passive management approach minimizes turnover and tracking error relative to its benchmark index.
- Highly liquid with tight bid-ask spreads, facilitating easy entry and exit for investors.
- Strong long-term performance track record, benefiting from exposure to innovative, rapidly growing companies.
Potential Risks
- Growth stocks can be more volatile than value stocks, particularly during market downturns or rising interest rate environments.
- Concentration risk in top holdings, with technology companies representing a significant portion of the portfolio.
- Vulnerable to style underperformance when value stocks are in favor.
- Limited international exposure, making it susceptible to U.S.-specific economic conditions.
- Valuation risk as growth stocks often trade at higher multiples relative to earnings.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-1.3%
|
-4.3%
|
-5.1%
|
+14.2%
|
+7.7%
|
-3.8%
|
-1.1%
|
+3.6%
|
+2.2%
|
+1.2%
|
-
|
-
|
| 2025 |
+1.9%
|
-3.0%
|
-8.5%
|
+2.0%
|
+9.2%
|
+6.2%
|
+3.8%
|
+0.8%
|
+4.7%
|
+4.0%
|
-1.6%
|
-0.5%
|
| 2024 |
+2.2%
|
+7.1%
|
+1.4%
|
-4.2%
|
+6.3%
|
+6.8%
|
-1.8%
|
+2.2%
|
+2.4%
|
-0.3%
|
+6.8%
|
+0.4%
|
| 2023 |
+10.4%
|
-1.4%
|
+7.8%
|
+1.0%
|
+5.2%
|
+6.9%
|
+3.4%
|
-1.1%
|
-5.7%
|
-1.8%
|
+11.6%
|
+4.3%
|
| 2022 |
-9.4%
|
-4.6%
|
+3.8%
|
-12.9%
|
-2.7%
|
-8.5%
|
+13.0%
|
-5.0%
|
-10.4%
|
+4.1%
|
+4.6%
|
-8.4%
|
| 2021 |
-1.0%
|
+0.8%
|
+1.8%
|
+6.9%
|
-1.4%
|
+6.0%
|
+3.2%
|
+3.7%
|
-5.3%
|
+8.3%
|
+0.7%
|
+1.6%
|
| 2020 |
+3.1%
|
-6.5%
|
-10.6%
|
+15.1%
|
+7.1%
|
+4.9%
|
+7.6%
|
+10.1%
|
-4.7%
|
-3.0%
|
+10.4%
|
+4.2%
|
| 2019 |
+9.2%
|
+3.7%
|
+3.1%
|
+4.7%
|
-6.3%
|
+6.8%
|
+2.3%
|
-0.6%
|
+0.3%
|
+2.6%
|
+4.0%
|
+3.0%
|
| 2018 |
+6.8%
|
-2.9%
|
-2.5%
|
+0.3%
|
+4.4%
|
+1.2%
|
+2.5%
|
+4.7%
|
+0.5%
|
-9.1%
|
+0.6%
|
-8.4%
|
| 2017 |
+3.5%
|
+4.4%
|
+1.3%
|
+2.3%
|
+2.8%
|
-0.4%
|
+2.5%
|
+1.2%
|
+1.0%
|
+2.9%
|
+2.4%
|
+0.9%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
13.1 % |
|
MSFT
|
MICROSOFT CORP |
10.6 % |
|
NVDA
|
NVIDIA CORP |
10.4 % |
|
AMZN
|
AMAZON.COM INC |
7.2 % |
|
META
|
META PLATFORMS INC CLASS A |
5.2 % |
|
TSLA
|
TESLA INC |
2.9 % |
|
LLY
|
ELI LILLY AND CO |
2.8 % |
|
GOOGL
|
ALPHABET INC CLASS A |
2.8 % |
|
GOOG
|
ALPHABET INC CLASS C |
2.2 % |
|
V
|
VISA INC CLASS A |
2.2 % |
Top 10 holdings shown, out of 180 total holdings.
Related ETFs: VUG vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VUG tracks the CRSP US Large Cap Growth Index, which uses a multifactor approach to identify growth stocks. The index methodology considers historical sales growth, earnings growth, and future growth expectations, along with valuation metrics. Stocks are weighted by market capitalization, meaning larger companies have greater influence on performance. The fund holds approximately 200-300 stocks, primarily common stocks of U.S. large-cap companies. VUG is rebalanced quarterly to maintain alignment with its benchmark index. The passive management approach results in low turnover, typically under 10% annually, which helps minimize capital gains distributions and trading costs.
Frequently Asked Questions
What types of companies does VUG invest in?
VUG invests in large U.S. companies exhibiting strong growth characteristics, primarily in technology, consumer discretionary, and communication services sectors. Top holdings typically include companies like Apple, Microsoft, Amazon, and Alphabet.
How often does VUG pay dividends?
VUG pays quarterly dividends, though the yield is typically low (around 0.5-1%) as growth companies often reinvest earnings rather than pay them out as dividends.
Is VUG a good investment for retirement accounts?
VUG can be appropriate for retirement accounts, particularly for investors with long time horizons who can weather market volatility. Its growth focus may provide capital appreciation potential over decades.
How does VUG differ from VOO (Vanguard S&P 500 ETF)?
While both are large-cap ETFs, VUG focuses specifically on growth stocks within the large-cap universe, while VOO includes all S&P 500 companies (both growth and value). VUG tends to have higher concentration in technology and higher volatility.
What was VUG's performance during the 2020 market downturn?
Like most growth funds, VUG experienced significant volatility in 2020 but rebounded strongly, benefiting from its heavy technology exposure as digital transformation accelerated during the pandemic.
Industry Overview
The Vanguard Growth ETF (VUG) provides exposure to the large-cap growth segment of the U.S. equity market. Growth investing focuses on companies expected to grow revenues and earnings at an above-average rate compared to the broader market. This segment is particularly strong in technology, consumer discretionary, and communication services sectors. Growth stocks tend to perform well during periods of economic expansion and technological innovation, though they can be more volatile than value stocks during market downturns. VUG offers investors a way to participate in the potential upside of these dynamic companies while benefiting from Vanguard's low-cost, index-based approach.
Alternative Comparison
Compared to similar growth ETFs like IWF (iShares Russell 1000 Growth ETF) and SCHG (Schwab U.S. Large-Cap Growth ETF), VUG stands out for its slightly lower expense ratio (0.04% vs. 0.18% for IWF and 0.04% for SCHG). While all three track different indexes, they have significant overlap in top holdings. VUG's CRSP index methodology tends to result in slightly different sector weightings than Russell-based competitors, with often less concentration in the very largest tech names. Unlike some actively managed growth funds, VUG maintains strict adherence to its index, avoiding manager discretion in stock selection.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its client-owned structure and commitment to low-cost index investing. With over $7 trillion in global assets under management, Vanguard pioneered index investing for individual investors. The company's ETFs are widely respected for their low expense ratios, tight tracking to their benchmarks, and investor-friendly structure. Vanguard's unique mutual ownership structure aligns its interests with those of fund shareholders.
Conclusion
VUG represents a core holding for investors seeking exposure to U.S. large-cap growth stocks. Its low cost, broad diversification, and consistent indexing approach make it particularly attractive for long-term investors. While growth investing carries inherent volatility risks, VUG's focus on established large-cap companies provides a balance between growth potential and relative stability. The fund's massive scale and liquidity make it suitable for both retail and institutional investors. For those building a diversified portfolio with a growth tilt, VUG offers an efficient, transparent vehicle to access this important market segment.
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