The S&P 500 Is a Great Option, but History Says This ETF May Be a Better Choice

Motley Fool04-28

Since its inception, the Vanguard Growth ETF has bested the return of the S&P 500. Yet, most of the top Vanguard Growth ETF and S&P 500 holdings are the same. The Growth ETF should be ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2430063202?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F773904%2Fgettyimages-1400536618.jpg&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-04-28 22:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2430063202","market":"us","top_or_hot":-1,"title":"The S&P 500 Is a Great Option, but History Says This ETF May Be a Better Choice","media":"Motley Fool","content":"<div>\n<p>Since its inception, the Vanguard Growth ETF has bested the return of the S&P 500.\n\n\n\n\n\n\n\nYet, most of the top Vanguard Growth ETF and S&P 500 holdings are the same.\n\n\n\n\n\n\n\nThe Growth ETF should be ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/04/28/the-sp-500-is-a-great-option-but-history-says-this/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The S&P 500 Is a Great Option, but History Says This ETF May Be a Better Choice</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe S&P 500 Is a Great Option, but History Says This ETF May Be a Better Choice\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-28 22:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/04/28/the-sp-500-is-a-great-option-but-history-says-this/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Since its inception, the Vanguard Growth ETF has bested the return of the S&P 500.\n\n\n\n\n\n\n\nYet, most of the top Vanguard Growth ETF and S&P 500 holdings are the same.\n\n\n\n\n\n\n\nThe Growth ETF should be ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/04/28/the-sp-500-is-a-great-option-but-history-says-this/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B7KXQ091.USD","symbol_name":"Janus Henderson Balanced A Inc USD","start_time":0,"source_url":"https://www.fool.com/investing/2024/04/28/the-sp-500-is-a-great-option-but-history-says-this/","article_id":"2430063202","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F773904%2Fgettyimages-1400536618.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2430063202","pubTimestamp":1714314600,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"This ETF can provide market-beating potential and relative stability because of the size of its holdings.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","CHH":"精选国际酒店","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","SPXU":"三倍做空标普500ETF",".SPX":"S&P 500 Index","OEX":"标普100","OEF":"标普100指数ETF-iShares","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","SH":"标普500反向ETF","LU0079474960.USD":"联博美国增长基金A","BK4532":"文艺复兴科技持仓","VOO":"Vanguard标普500ETF","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU0061474960.USD":"天利环球焦点基金AU Acc","UPRO":"三倍做多标普500ETF","SPY":"标普500ETF","BK4533":"AQR资本管理(全球第二大对冲基金)","GOOG":"谷歌","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","BK4525":"远程办公概念","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","BK4587":"ChatGPT概念","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","IVV":"标普500指数ETF","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4077":"互动媒体与服务","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","BK4527":"明星科技股","BK4588":"碎股","FDN":"First Trust Dow Jones Internet I","LU1814569148.SGD":"WELLINGTON GLOBAL QUALITY GROWTH \"D\" (SGDHDG) ACC","BK4561":"索罗斯持仓","LU0965509283.SGD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (SGDHDG) INC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","SSO":"两倍做多标普500ETF","GOOGL":"谷歌A","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","SDS":"两倍做空标普500ETF","BK4548":"巴美列捷福持仓"},"translate_title":"标普500是一个很好的选择，但历史表明，这只ETF可能是一个更好的选择","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VOO":1,"FDN":1,"SPY":1,".SPX":1,"CHH":1,"GOOGL":0.84,"GOOG":0.84,"IVV":0.6,"OEF":0.6,"OEX":0.6,"SDS":0.6,"SH":0.6,"SPXU":0.6,"SSO":0.6,"UPRO":0.6,"ESmain":0.6},"content_text":"Since its inception, the Vanguard Growth ETF has bested the return of the S&P 500.\n\n\n\n\n\n\n\nYet, most of the top Vanguard Growth ETF and S&P 500 holdings are the same.\n\n\n\n\n\n\n\nThe Growth ETF should be combined with non-tech investments for diversification.\n\nStock market indexes are formed by grouping companies according to specific criteria -- and they are often used as comparison points for an investor's own portfolio.The most popular and important index is the S&P 500, which tracks the largest 500 public U.S. companies. When it comes to benchmarks, the S&P 500 is the benchmark. Given the size and diversity of the companies the S&P 500 tracks, it's often used to gauge the health of the U.S. economy, and investing in an S&P 500 fund is akin to investing in the broader U.S. economy.Despite how great of an investment option the S&P 500 is, one ETF has historically been a better investment: the Vanguard Growth ETF (VUG 1.82%). Let's see why -- and whether it might make a sensible investment now.Vanguard Index Funds - Vanguard Growth ETF\" current_price=\"335.18\" daily_high=\"336.55\" daily_low=\"332.48\" default_period=\"FiveYear\" dividend_yield=\"N/A\" exchange=\"NYSEMKT\" fifty_two_week_high=\"348.88\" fifty_two_week_low=\"246.28\" gross_margin=\"0.00\" logo=\"https://g.foolcdn.com/art/companylogos/mark/VUG.png\" market_cap=\"\" pe_ratio=\"\" percent_change=\"1.82\" symbol=\"VUG\" volume=\"1,437,363\">So, what is the Vanguard Growth ETF?The Vanguard Growth ETF is a large-cap fund focusing on companies with above-average growth potential (hence the name). It's a great way to get the best of both worlds in stock investing.On one end, you get exposure to companies in a position to produce market-beating returns. On the other end, the large size of these companies means they're generally more well established and can help provide more stability during rockier times in the stock market. For perspective, the smallest company in the ETF, Liberty Broadband, has a market cap of around $7.1 billion.Having larger companies in the ETF is beneficial because many growth stocks are known for being more volatile due to their valuations being built on potential. Although larger companies can also be valued on potential, you don't typically get to their sizes without establishing a good market position.Guided by some of the world's greatest companiesSince the Vanguard Growth ETF and S&P 500 focus on large-cap companies, there is a good amount of overlap between them, although the former typically only contains around 200 stocks. Below are overlapping companies from the top 10 holdings of the Vanguard Growth ETF and Vanguard S&P 500 ETF and how much of the ETFs they account for:CompanyPercentage of Vanguard Growth ETFPercentage of Vanguard S&P 500 ETFMicrosoft12.96%7.08%Apple10.42%5.63%NVIDIA8.88%5.05%Amazon6.97%3.73%Meta Platforms4.45%2.42%Alphabet Class A3.67%2.01%Alphabet Class C3.03%1.70%Eli Lilly & Co.2.77%1.40%Sources: Vanguard. Percentages as of March 31.Having 10 companies account for close to 57% of an ETF (Visa is 1.78%) sn't a billboard for diversification, but it makes sense given that the Vanguard Growth ETF is market cap-weighted, and many of the top growth companies we've seen explode in value over the past decade or so have been tech companies.The tech sector makes up over 56% of the Vanguard Growth ETF, so it's not quite the one-stop shop that an S&P 500 ETF is, but it can be a foundational part of a portfolio that investors complement with other sector-specific ETFs or companies.Consistently outperforming the U.S. stock marketRegardless of the similarities or differences between the Vanguard Growth ETF and the S&P 500, the results matter most. A one-time $10,000 investment in the Vanguard Growth ETF at its January 2004 inception would be worth just under $79,500 today. The same investment in an S&P 500 ETF would be worth around $64,000 (not including fees in both cases).While the Vanguard Growth ETF has outperformed the S&P 500 in that span (9.6% to 7.5% average annual returns), the difference has been even more pronounced in the past decade, when growth stocks have soared.VUG Total Return Level data by YCharts.The difference between the Vanguard Growth ETF and the S&P 500 is smaller when examining total returns, but this can be attributed to the S&P 500 including dividend stocks that don't fit the Vanguard Growth ETF growth criteria.You never want to use past results to predict future performance, but given the overlap of companies and current market trends (especially in tech), the Vanguard Growth ETF is in a great position to continue producing long-term market-beating returns.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430063202"}