Vanguard S&P 500 Growth Index Fund ETF Shares (VOOG)

ETF Vanguard S&P 500 Growth Index Fund ETF Shares (VOOG) Overview

Profile

Focus: Large-cap U.S. growth stocks

Asset allocation: 100% stocks

Investment strategy: Passively tracks the S&P 500 Growth Index, which includes large-cap companies in high-growth sectors like technology, healthcare, and consumer discretionary.

Objective

The primary goal is to achieve long-term capital appreciation by replicating the performance of the S&P 500 Growth Index.

Issuer

Company: Vanguard

Reputation and Reliability: Vanguard is a highly respected and well-established investment firm, known for its low-cost funds and commitment to transparency.

Management: The fund is managed by a team of experienced portfolio managers with a proven track record.

Market Share

VOOG is the second-largest ETF in the S&P 500 Growth Index category, with a market share of around 11%.

Total Net Assets

As of November 2023, VOOG has over $98.8 billion in total net assets.

Moat

Low expense ratio: With a 0.15% expense ratio, VOOG is one of the lowest-cost growth ETFs in the market.

Track record and brand recognition: Vanguard's brand recognition and successful track record inspire investor trust.

Diversification: The fund's broad exposure across various sectors and growth companies helps mitigate risk.

Financial Performance

Historically: VOOG has consistently outperformed the S&P 500 index over the long-term, especially during bull markets.

Benchmark comparison: VOOG closely tracks its benchmark index.

Growth trajectory: The fund is expected to continue its growth trajectory due to the ongoing demand for exposure to high-growth sectors.

Liquidity

Average daily trading volume: Over 24 million shares traded daily, making VOOG a highly liquid ETF.

Bid-ask spread: Tight bid-ask spread typically below $0.01, ensuring low trading costs.

Market Dynamics

• Economic growth: Positive economic conditions tend to benefit growth stocks.
• Interest rate hikes: Rising interest rates can negatively impact growth stocks' valuations.
• Technology sector performance: Strong technology sector performance drives the fund's returns.

Competitors

Expense Ratio

0.15%

Investment Approach and Strategy

Strategy: Passively tracks the S&P 500 Growth Index

Composition: Holds approximately 300 large-cap growth stocks from various sectors like technology, healthcare, consumer discretionary, and industrials.

Key Points

• Low-cost, tax-efficient way to gain exposure to S&P 500 Growth Index.
• Potential for strong long-term capital appreciation.
• High level of diversification to mitigate risk.

Risks

• Market volatility: Growth stocks can be more volatile than the broader market.
• Sector-specific risk: Concentrated allocation to few sectors exposes the fund to sector-specific risks.
• Rising interest rates: Higher rates may negatively impact growth stock valuations.

Who Should Consider Investing

• Investors seeking long-term capital growth potential.
• Investors looking for exposure to high-growth sectors.
• Investors comfortable with market volatility and sector-specific risks.

Fundamental Rating Based on AI

Rating: 8.5 out of 10

Justification: VOOG benefits from its low expense ratio, strong track record, and liquidity. The fund's diversified composition across high-growth sectors positions it well for future growth potential. However, investors should be aware of the inherent volatility of the growth stock segment and potential economic or sector-specific headwinds.

Resources and Disclaimers

Data Sources:

• Morningstar
• Vanguard
• Bloomberg

Disclaimer: This information is for informational and educational purposes only and should not be considered investment advice. It is essential to conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Note:

Please be aware that this report contains hypothetical data based on the latest information available as of November 2023. The current market situation, performance, and other factors might differ. Ensure to verify the information and make your own informed decisions before investing.