Vanguard Growth Funds Offer Low-Cost Investment Options

Vanguard growth funds offer a range of low-cost investment options for those looking to grow their wealth over the long term.

One notable fund is the Vanguard Growth Index Fund, which has a low expense ratio of 0.07%.

This means that investors can keep more of their returns, rather than paying high fees to financial advisors or managers.

The fund tracks the CRSP US Growth Index, which includes a diversified portfolio of US stocks with high growth potential.

Take a look at this: Index Funds with the Lowest Expense Ratio

The Vanguard growth fund has a unique approach to picking stocks. It tracks the CRSP US Large Cap Growth Index, which sorts stocks based on six fundamental factors.

The fund invests in the fastest-growing half of U.S. large-cap stocks, resulting in a portfolio that's generally more expensive but faster growing than the broad market. This is measured by the S&P 500 Index.

Here are the top-10 holdings in the fund, which include some growth investors' favorite stocks:

The Vanguard Admiral Funds are a great addition to any portfolio, especially if you're looking to invest in a top growth fund. The Vanguard S&P 500 Growth ETF is a standout option, having gained 7.4% in 2024 despite market concerns.

The S&P 500 is currently trading at 24 times trailing earnings, which is well above its 10-year average multiple of around 20. This high valuation may lead to a pullback in the market.

Stocks have become expensive relative to corporate earnings, creating a cognitive dissonance that could affect the market. Savvy investors know that being prepared is key to capitalizing on market opportunities.

The Vanguard S&P 500 Growth Index Fund ETF Shares (VOOG) is a supercharged ETF that stands out as a go-to play if the market indeed dips.

Check this out: T Rowe Price Growth Stock Fund - Class I

The Vanguard Index Fund Admiral Shares (VIGAX) has a portfolio that's quite interesting. It's designed to track the CRSP US Large Cap Growth Index, which sorts stocks based on six fundamental factors.

Curious to learn more? Check out: Vanguard Index Funds Returns

One of the most notable aspects of the fund's portfolio is its focus on growth stocks. It invests in the fastest-growing half of U.S. large-cap stocks, which results in a portfolio that's generally more expensive but faster growing than the broad market.

The fund's top 10 holdings are a mix of well-known growth stocks from various sectors. Apple is the largest holding, making up 11.53% of the portfolio with a market value of $32.5 billion.

Here are the top 10 holdings of the VIGAX fund, along with their percentage of the portfolio and market value:

These holdings are not surprising, given the fund's focus on growth stocks.

The performance of Vanguard growth funds is quite impressive. The 1-year performance of various funds is remarkably consistent, with most funds showing returns around 30.84% to 30.86%.

The Vanguard Growth Index Fund Institutional Shares and the Vanguard Growth Index Fund ETF Shares have identical 1-year performances of 30.85%.

Worth a look: Vanguard Bond Funds Performance

The BlackRock Advantage Large Cap Growth Fund Class K and the Putnam Large Cap Growth Fund Class R5 also have identical 1-year performances of 30.85%.

The JPMorgan U.S. GARP Equity Fund R6 stands out with a 1-year performance of 30.86%, slightly ahead of the others.

Here's a comparison of the 1-year performances of these funds:

Vanguard has made a significant move by announcing the largest ever expense ratio reduction to one hundred sixty-eight mutual fund and exchange-traded share classes across their portfolio.

This reduction will likely have a positive impact on investors' returns, as lower expense ratios can mean more money in their pockets.

Investors should take note that Vanguard has made a commitment to transparency and has been working to reduce costs for their clients.

Vanguard's expense ratio reduction is a testament to their dedication to providing affordable investment options to a wide range of investors.

If this caught your attention, see: Gold to Silver Ratio When to Buy