While value may currently be in favor with investors, they can still get growth with large cap stability with exchange-traded funds (ETFs) like the Vanguard Russell 1000 Growth Index Fund ETF Shares (VONG).
“Although many stocks are trading at or near their 52-week highs right now, that doesn’t mean that they will run out of steam or that they are due for a crash,” a Motley Fool article noted. “By focusing on long-term growth opportunities involving healthcare, e-commerce, and technology, investors won’t need to worry about short-term price movements or earnings performances alone”
VONG seeks to track the performance of the Russell 1000® Growth Index. The index is designed to measure the performance of large-capitalization growth stocks in the United States.
The Advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The fund may become non-diversified, as defined under the Investment Company Act of 1940, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index.
This ETF is linked to the Russell 1000 Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio.
- Invests in stocks in the Russell 1000 Growth Index, a broadly diversified index predominantly made up of growth stocks of large U.S. companies.
- Seeks to closely track the index’s return, which is considered a gauge of large-cap growth U.S. stock returns.
- Offers high potential for investment growth; share value typically rises and falls more sharply than that of funds holding bonds.
- More appropriate for long-term goals where your money’s growth is essential.
A Steady Eddie
Riding a steady uptrend, VONG has risen over 60% within the past year. Over 25% of the fund is powered by big tech names with growth potential, such as Amazon, Apple, and Microsoft.
“Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class,” an ETF Database analysis said. “Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as companies re-invest earnings. VONG is linked to an index consisting of just over 600 holdings and exposure is tilted most heavily towards technology, while industrials, energy, and consumer goods receive equal weightings.”
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