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$1,000 Invested in VUG Could Turn Into $50,000

SW

Stefon Walters

The Motley Fool is a financial services company founded in 1993, aimed at making the world smarter, happier, and richer. It provides premium investing solutions, free guidance, market analysis, and personal finance education.

The article highlights large-cap growth stocks as a balance between stability and growth. The Vanguard Growth ETF, with an average annual return of over 14% in the past decade, exemplifies this, showcasing how compounding earnings benefit consistent investors.

Vanguard Growth ETF (VUG) invests in growth stocks with established business models and financial stability. Although not as flashy as individual stocks, ETFs like VUG offer returns surpassing the broader market. VUG's large-cap stocks provide stability due to diversified revenue streams and economic resilience.

Top holdings of VUG include Apple, Microsoft, Nvidia, Amazon, and Meta Platforms. The ETF is weighted by market cap, making it top-heavy, especially in tech stocks. These companies are seen as stable yet growth-oriented, offering significant investment returns. VUG focuses over 58% on the tech sector.

With its performance, VUG has the potential to greatly increase an investment's return over time. A $1,000 investment could potentially grow to $50,000 if it maintains its current trajectory, highlighting the power of long-term ETFs in investment portfolios.