Vanguard Growth ETF, heavy in tech stocks, on track to beat S&P 500 in 2025.

The Vanguard Growth ETF (VUG) is on track to outperform the S&P 500 in 2025, largely due to its heavy weighting in tech stocks like Nvidia, Microsoft, and Apple. Since 2004, VUG has averaged an 11.4% annual return compared to the S&P 500's 10.1%. This year, VUG has gained 30.9%. Its tech focus, especially in AI-related stocks, drives its performance, though a market correction could pose a risk. As long as the U.S. economy stays strong, VUG is expected to beat the S&P 500 again next year.

December 01, 2024
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