In case you’re like me, you’ll love a portfolio chock-full of terrific development shares. However reaching that’s simpler stated than executed, since you’ll want a while and talent to check the universe of shares, deciding which of them have essentially the most promise and when you should purchase — and/or promote — them.
Thus, it may be good to stay with one or two nice development exchange-traded funds (ETFs). (An ETF is a fund that trades like a inventory, making it simple to get out and in of.) This is a have a look at one among my favorites — the Vanguard Development ETF (NYSEMKT: VUG)
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The desk under exhibits the way it has carried out, and presents comparative numbers for the Vanguard S&P 500 ETF (NYSEMKT: VOO):
Time Interval | Vanguard Development ETF | Vanguard S&P 500 ETF |
|---|---|---|
Previous 5 years | 12.81% | 13.82% |
Previous 10 years | 18.55% | 16.09% |
Previous 15 years | 15.40% | 13.77% |
Information supply: Morningstar as of Feb. 9, 2026.
Listed here are some causes I really like this ETF:
It sports activities a strong efficiency report.
Its expense ratio (annual charge) is simply 0.04%, so you will fork over solely $0.40 yearly for every $1,000 you’ve gotten invested within the fund.
It is full of huge, established corporations, together with the “Magnificent Seven.”
Listed here are the ETF’s current high 10 holdings:
Inventory | P.c of ETF |
|---|---|
Nvidia | 12.73% |
Apple | 11.88% |
Microsoft | 10.63% |
Alphabet Class A | 5.39% |
Amazon | 4.58% |
Alphabet Class C | 4.27% |
Meta Platforms | 4.26% |
Broadcom | 4.04% |
Tesla | 3.77% |
Eli Lilly | 2.72% |
Information supply: Morningstar as of Dec. 31, 2025.
In fact, the ETF shouldn’t be for everybody, and also you may suppose twice if:
You are frightened about an imminent market meltdown — as a result of throughout such pullbacks, development shares usually fall tougher than their counterparts.
You do not love very concentrated funds. This ETF not too long ago held about 64% of its property in simply its high 10 holdings. (It not too long ago held 151 completely different shares.) Certainly, about 35% of its property have been in simply its high three holdings! It is a plus, after all, in case you’re exceptionally bullish on the way forward for corporations reminiscent of Nvidia, Apple, and Microsoft.
You would like some dividend revenue. This ETF’s current yield was simply 0.42%, even lower than the S&P 500’s current 1.1%.
So take a more in-depth look, weigh the fund’s professionals and cons, and see what you suppose. Keep in mind that there are many different promising ETFs on the market, too.
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