Vanguard S&P 500 Growth ETF Outperforms with Tech-Heavy Portfolio
The Vanguard S&P 500 Growth ETF (VOOG) has delivered staggering returns over the past decade, leveraging a concentrated portfolio of high-growth stocks. With $10,000 invested ten years ago, the fund WOULD now be worth a multiple of that amount, underscoring the power of growth-oriented strategies.
Unlike the broad S&P 500, which spans 500 companies across 11 sectors, VOOG focuses on just 216 top-performing growth stocks. This selectivity has paid off, particularly as technology dominates the index. The information technology sector accounts for 42.6% of VOOG's holdings, compared to 34.8% in the S&P 500.
Tech giants like Apple, Microsoft, and Nvidia—collectively valued at $11.9 trillion—anchor the fund. Their momentum and sales growth align perfectly with the S&P 500 Growth Index's criteria. The ETF's top holdings reflect this bias, featuring a mix of pure-play tech and adjacent disruptors.
