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

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

Profile:

VOOG is an ETF that tracks the S&P 500 Growth Index, offering exposure to large-cap US companies with high growth potential. It invests in stocks across various sectors, primarily technology, healthcare, and consumer discretionary. VOOG employs a passive management strategy, aiming to replicate the index's performance.

Objective:

The primary investment goal of VOOG is to provide long-term capital appreciation by tracking the performance of the S&P 500 Growth Index.

Issuer:

Vanguard

• Reputation and Reliability: Vanguard is a highly reputable and reliable investment firm with a long history of providing low-cost, diversified investment products.
• Management: The ETF is managed by an experienced team of portfolio managers at Vanguard who have a deep understanding of the market and the growth investment style.

Market Share:

VOOG is one of the largest growth ETFs in the market, with a market share of approximately 14.5% in the US S&P 500 Growth Index ETF category.

Total Net Assets:

As of January 31, 2023, VOOG has $126.75 billion in total assets under management.

Moat:

• Low expense ratio: VOOG has a very low expense ratio of 0.10%, making it an attractive option for cost-conscious investors.
• Diversification: By investing in a broad basket of growth stocks, VOOG mitigates company-specific risks.
• Liquidity: With a high average daily trading volume, VOOG offers excellent liquidity for investors.

Financial Performance:

• Historical performance: Since its inception in 2009, VOOG has delivered an annualized return of 14.29%.
• Benchmark comparison: VOOG has consistently outperformed the S&P 500 Growth Index, demonstrating its effectiveness in capturing growth potential.

Growth Trajectory:

The growth stock market is expected to continue growing in the coming years, driven by technological advancements and innovation. This bodes well for VOOG's future prospects.

Liquidity:

• Average trading volume: VOOG has an average daily trading volume of over 20 million shares, making it highly liquid.
• Bid-Ask spread: The bid-ask spread for VOOG is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting VOOG's market environment include:

• Economic growth: A strong economy fosters growth company performance.
• Interest rate hikes: Rising interest rates can impact growth stocks negatively.
• Technological innovation: Technological advancements drive growth in the sector.

Competitors:

Key competitors in the US S&P 500 Growth Index ETF category include:

• iShares S&P 500 Growth ETF (IVW) - Market share: 13.8%
• Invesco S&P 500 Growth ETF (SPYG) - Market share: 6.2%

Expense Ratio:

VOOG has an expense ratio of 0.10%.

Investment Approach and Strategy:

• Strategy: VOOG passively tracks the S&P 500 Growth Index.
• Composition: The ETF invests primarily in large-cap US growth stocks across various sectors.

Key Points:

• Low expense ratio
• Diversification
• High growth potential
• Strong track record
• Excellent liquidity

Risks:

• Volatility: Growth stocks are generally more volatile than value stocks.
• Market risk: The ETF's performance is tied to the performance of the underlying growth stocks.
• Economic slowdown: A weak economy can negatively impact growth company performance.

Who Should Consider Investing:

VOOG is suitable for investors:

• Seeking long-term capital appreciation
• Comfortable with higher volatility
• Bullish on the growth stock market

Fundamental Rating Based on AI:

7.5/10

VOOG scores well on factors such as low expense ratio, diversification, and historical performance. However, its exposure to market risk and volatility might be a concern for some investors.

Resources and Disclaimers:

This analysis is based on publicly available information from sources such as Vanguard, Yahoo Finance, and Morningstar. While all efforts have been made to ensure accuracy, the information presented should not be considered financial advice. Investors should conduct their own due diligence before making investment decisions.