Vanguard Growth ETF

Vanguard Growth ETF (VUG) is an index fund that tracks the CRSP US Large Cap Growth Index, owning large US companies expected to grow faster than average, led by NVIDIA, Apple and Microsoft. Its 0.03% annual fee, per its April 2026 prospectus, is the lowest of nine similar large-cap growth ETFs; the other eight average 0.10%. The trade-off is concentration: as of June 30, 2026, its 10 largest holdings made up 60% of assets.

• Over the year to Oct 30, 2026, VUG returned +3.8%, 5th of 9 among similar funds.
• Its 5-year annualized return was +10.9%.
• Its worst full calendar year was 2022 (-33.1%); its best was 2023 (+46.8%).
• The deepest fall in its price history was 35.6% (Nov 19, 2021 to Nov 3, 2022), recovered by Jan 23, 2024.

As of Jun 30, 2026, the fund held 147 securities; the ten largest made up 60.44% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $2.22B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.27%, +7.72%, -3.57%.

VUG is the exchange-traded share class of Vanguard Growth Index Fund. Every share class owns the same portfolio, which held $379.3 billion across all classes as of June 30, 2026. The fund tracks the CRSP US Large Cap Growth Index. The index provider decides which large US companies count as growth stocks, generally those expected to expand faster than average.

Vanguard doesn't pick stocks here. The fund aims to hold all, or nearly all, of the index's stocks in about the same proportions, and must keep at least 80% of net assets in them. When the index changes, the fund follows. The prospectus reports 12% turnover, the share of the portfolio replaced over a year. Copying the index makes the fund top-heavy. As of June 30, 2026, it had 147 holdings, but the top 10 made up 60.44%, led by NVIDIA (12.6%), Apple (11.7%) and Microsoft (7.6%). The prospectus warns the fund could become “nondiversified,” a legal label meaning a few stocks carry outsized weight, by tracking the index.

It uses no leverage or options strategy. Shares trade on NYSE Arca at market prices, which can sit slightly above or below the value of the fund's holdings. Financial firms called authorized participants create and redeem shares directly with the fund, which usually keeps that gap small.

• VUG charges 0.03% a year, versus an average of 0.1% for the similar funds below (1st of 9, cheapest first).
• Of that, 0.02% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).

It holds only large US growth stocks, with about 52% of assets in technology as of June 30, 2026, so it tends to complement a broader stock and bond mix rather than anchor one.

VUG could add low-cost exposure to large US growth companies; the SEC's standard example puts costs at $39 over 10 years on $10,000. Income is thin: the trailing 12-month yield was 0.84% as of October 27, 2026, paid quarterly, so a retiree drawing cash would mostly be selling shares.

Price figures here start in June 2020, so they miss 2008 and the COVID crash, though the prospectus shows a 40.16% gain for 2020. The fund fell 34.5% in the 2022 bear market; its 33.1% loss for 2022 was the worst year shown in its prospectus. Its deepest drop, 35.6%, ran from November 2021 to November 2022; the fund regained its peak in January 2024, 14.7 months after the low. Selling near that low meant locking in steep losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.