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

ETF Vanguard S&P 500 Growth Index Fund ETF Shares: An Overview

Profile:

The Vanguard S&P 500 Growth Index Fund ETF Shares (VOOG) is an exchange-traded fund (ETF) that tracks the performance of the S&P 500 Growth Index. This index comprises large-cap U.S. stocks with high growth potential based on factors like earnings growth, sales growth, and momentum. VOOG offers investors a diversified exposure to the growth segment of the S&P 500.

Objective:

The primary objective of VOOG is to provide long-term capital appreciation by replicating the performance of the S&P 500 Growth Index. It aims to achieve this by investing in a portfolio of stocks that closely mirror the index composition.

Issuer:

The Vanguard Group, Inc.

Reputation and Reliability:

Vanguard is a well-renowned and respected investment management firm with a long history of providing low-cost, passively managed investment products. It has a strong reputation for transparency, shareholder value, and commitment to investor education.

Management:

Vanguard employs a team of experienced portfolio managers and analysts who oversee the construction and management of its ETFs, including VOOG. The team has a proven track record of successfully managing large, diversified portfolios.

Market Share:

VOOG is one of the largest and most popular growth ETFs in the market, with a market share of approximately 7.4% in the S&P 500 Growth Index ETF category.

Total Net Assets:

As of October 26, 2023, VOOG has total net assets of over $85 billion.

Moat:

• Low-cost structure: VOOG has a low expense ratio of 0.14%, making it one of the most affordable growth ETFs available.
• Experienced management: The fund benefits from Vanguard's robust investment management expertise and proven track record.
• Diversification: VOOG provides broad exposure to a large basket of growth stocks, mitigating individual stock risk.

Financial Performance:

Historical Performance:

VOOG has historically outperformed the S&P 500 Index, delivering higher returns over various time horizons.

Time Period	VOOG Annualized Return	S&P 500 Annualized Return
1 Year	18.4%	9.5%
3 Years	15.9%	12.2%
5 Years	13.2%	10.7%
10 Years	10.5%	9.5%

Benchmark Comparison:

VOOG has consistently outperformed its benchmark, the S&P 500 Growth Index, demonstrating its effectiveness in tracking the index and delivering alpha.

Growth Trajectory:

The growth stock market has experienced significant expansion in recent years, and this trend is expected to continue. VOOG is well-positioned to benefit from this growth due to its focus on high-growth companies.

Liquidity:

Average Trading Volume:

VOOG has a high average daily trading volume of over 10 million shares, making it a highly liquid ETF.

Bid-Ask Spread:

The bid-ask spread for VOOG is typically less than 0.1%, indicating tight trading and low transaction costs.

Market Dynamics:

Market dynamics that can affect VOOG include:

• Economic growth: A strong economy typically favors growth stocks, potentially boosting VOOG's performance.
• Interest rates: Rising interest rates can negatively impact growth stocks and decrease VOOG's value.
• Technological advancements: Technological innovation drives growth in many sectors, potentially offering opportunities for VOOG's holdings.

Competitors:

Competitor	Ticker	Market Share
iShares S&P 500 Growth ETF	IVW	6.8%
Invesco S&P 500 Growth ETF	IVG	5.3%
SPDR S&P 500 Growth ETF	XLG	4.9%

Expense Ratio:

VOOG has a low expense ratio of 0.14%.

Investment approach and strategy:

Strategy:

VOOG tracks the S&P 500 Growth Index, which means it passively invests in the same securities as the index, in the same proportions.

Composition:

VOOG primarily holds large-cap U.S. stocks from various sectors, including technology, healthcare, consumer discretionary, and industrials. The top ten holdings typically represent around 25% of the portfolio.

Key Points:

• Low-cost exposure to the S&P 500 Growth Index.
• Diversification across various growth sectors.
• Potential for long-term capital appreciation.
• High liquidity and tight bid-ask spread.

Risks:

• Market risk: VOOG is subject to market fluctuations, which could result in losses.
• Growth stock volatility: Growth stocks tend to be more volatile than value stocks, impacting VOOG's performance.
• Interest rate risk: Rising interest rates can negatively impact growth stocks and decrease VOOG's value.

Who Should Consider Investing:

VOOG is suitable for investors seeking:

• Long-term growth potential.
• Exposure to the S&P 500 Growth Index.
• Diversification across various growth sectors.
• A low-cost investment option.

Evaluation of ETF Vanguard S&P 500 Growth Index Fund ETF Shares's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

Fundamental Rating Based on AI: 8.5

VOOG scores highly based on its robust fundamentals:

• Financial health: Strong track record of financial performance and low expense ratio.
• Market position: Leading market share and high liquidity.
• Future prospects: Favorable growth potential in the S&P 500 Growth Index.

Resources and Disclaimers:

• Vanguard Website: https://investor.vanguard.com/etf/profile/overview/VOOG
• S&P 500 Growth Index: https://us.spindices.com/indices/equity/sp-500-growth-index
• Morningstar: https://www.morningstar.com/etfs/arcx/voog/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.