From The Motley Fool · Jake Lerch · · 1m
Vanguard Growth ETF Outperforms Small-Cap Peer
Vanguard Growth ETF beats small-cap fund over five years with tech focus.
In brief
Vanguard Growth ETF beats small-cap fund over five years with tech focus. Vanguard Morningstar Growth ETF outperformed Vanguard Morningstar Small-Cap Growth ETF by 79% vs 17% over five years due to heavy tech weighting. Originally reported by The Motley Fool.
Vanguard Growth ETF (VUG)
Vanguard Morningstar Growth ETF provides low-cost exposure to mega-cap technology leaders.
Vanguard Small-Cap Growth ETF (VBK)
Vanguard Morningstar Small-Cap Growth ETF targets smaller emerging companies with diversified portfolio.
Key Metrics
VUG: $89.78 share price, 0.03% expense ratio, 13.0% 1-year return; VBK: $335.02 share price, 0.05% expense ratio, 10.3% 1-year return.
Five-Year Performance
VUG delivered 79% total return over five years vs VBK's 17% with 12.3% CAGR for VUG.
Sector Focus
VUG: 58% technology, 15% communication services, 11% consumer cyclical; VBK: 27% technology, 20% industrials, 20% healthcare.
Top Holdings
VUG holds Nvidia (13.49%), Apple (12.51%), Microsoft (9.75%); VBK holds Natera (1.62%), Twilio (1.28%), Revolution Medicines (1.19%).
Investor Recommendation
VUG preferred for tech-focused investors; VBK for diversification away from big tech stocks.
The bottom line
Vanguard Morningstar Growth ETF outperformed Vanguard Morningstar Small-Cap Growth ETF by 79% vs 17% over five years due to heavy tech weighting.
