Vanguard Growth ETF (VUG): A Deep Dive into Its Performance

Analysis Reveals VUG ETF's Stability Amid Volatility. The Vanguard Growth ETF (VUG) has seen some volatility, losing approximately -7.65% this year, but remains an appealing option for investors seeking exposure to large cap growth stocks.

Date: 21-03-2025

AI Rating: 6

Performance and Volatility
VUG has lost about -7.65% year-to-date, indicating some volatility, but it has a one-year gain of approximately 11.03%. This performance suggests that while there may be short-term setbacks, the ETF has shown strength over the longer term.

Expense Ratios
With an annual operating expense of 0.04%, VUG’s low cost structure is favorable compared to other options within its category. Lower expense ratios can lead to higher net returns for investors, particularly over the long term.

Sector Allocation
The ETF's heavy allocation towards the Information Technology sector at about 48.40% may imply a higher risk due to sector volatility, but also greater potential for returns, as tech stocks have historically shown robust growth. Its top holdings, including Apple Inc (AAPL), Microsoft Corp (MSFT), and Nvidia Corp (NVDA), are major players in the tech industry and can influence ETF performance significantly.

Beta and Risk Indicators
The ETF has a beta of 1.14, suggesting it is slightly more volatile compared to the market. A standard deviation of 22.38% indicates a medium risk profile for potential investors. These metrics suggest that though there may be fluctuations, VUG is diversified across 181 holdings, which minimizes the risks associated with single stocks.

Overall, while VUG is experiencing some downturn this year, its strong performance in the previous year, low expense ratio, and significant holdings in the technology sector could make it an attractive investment for those looking for growth in a diversified format.

Stocks: VUG AAPL MSFT NVDA