Vanguard 500 Index Fund vs Vanguard S&P 500 Growth ETF: Understanding the Decade-Long Performance Difference

Thursday, 25 April 2024, 10:10

The Vanguard S&P 500 Growth ETF has outperformed the Vanguard 500 Index ETF over the past decade, showcasing the dominance of growth stocks. With an annual return of 14.42% compared to 12.91%, the growth ETF provides exposure to companies with higher revenue growth. This performance disparity underlines the significance of investment choices in a dynamic market environment.
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Vanguard 500 Index Fund vs Vanguard S&P 500 Growth ETF: Understanding the Decade-Long Performance Difference

Vanguard 500 Index Fund vs Vanguard S&P 500 Growth ETF: A Decade-Long Performance Comparison

The Vanguard 500 Index Fund ETF - Key Features:

  • The ETF provides diversification into the largest U.S. companies
  • Annual return of 12.91%

Vanguard S&P 500 Growth ETF - Outperforming Factors:

  • Annual return of 14.42% over the past decade
  • Concentration on growth stocks with higher revenue and earnings growth

The market-cap-weighted index allows winners to gain significance, impacting portfolio composition and performance.

The outperformance of growth stocks like the Vanguard S&P 500 Growth ETF emphasizes the dynamic nature of investment results in different market scenarios.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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