Key Points
If you’re exploring growth stocks to invest in before 2025 wraps up, you might want to consider the Vanguard Growth ETF (nysemkt:vug). Just a note, though: it’s not your typical common stock. It’s actually an Exchange-Traded Fund (ETF), which is a kind of security that operates like a mutual fund but trades like a stock—potentially superior to investing in a single growth stock.
Now, buying individual growth stocks can be risky. You know, not every stock soars. By opting for this ETF, you get exposure to a bunch of promising companies, which can help level out your potential returns.
Check below for the long-term performance of this ETF compared to the S&P 500 Index funds.
|
ETF |
Average over 5 years. Annual Returns |
First half of 10. Annual Returns |
Average over 15 years. Annual Returns |
|---|---|---|---|
|
SPDR S&P 500 ETF(nysemkt: spy) |
15.98% |
14.65% |
14.64% |
|
Vanguard Growth ETF |
16.69% |
17.25% |
16.90% |
Source: MorningStar.com, as of September 9, 2025. ETF= Exchange-Traded Fund.
Impressive, right? This ETF holds over 300 shares, including major players like Apple, Nvidia, and Microsoft, which are part of the “Magnificent Seven.” Just look at the top holdings.
|
Stock |
ETF Percentage |
|---|---|
|
Nvidia |
12.64% |
|
Microsoft |
12.18% |
|
Apple |
9.48% |
|
Amazon |
6.72% |
|
Meta Platform |
4.62% |
|
Broadcom |
4.39% |
|
Alphabet Class A |
3.34% |
|
Tesla |
2.69% |
|
Alphabet Class C |
2.67% |
|
Eli Lilly |
2.01% |
Source: vanguard.com. As of July 31, 2025, ETF = Exchange-Traded Fund.
Investing in the Vanguard Growth ETF gives you a piece of well-known tech companies like Nvidia and Apple. But keep in mind that such growth stocks can be a bit volatile. For best results, a long-term hold might be the way to go.
Vanguard Index Funds – Should I invest $1,000 in a Vanguard Growth ETF?
Before diving into the Vanguard Growth ETF, consider this carefully.
The team from Motley Fool Stock Advisor has pinpointed what they see as the 10 Best Stocks for immediate investment… and the Vanguard Growth ETF wasn’t on their list. The stocks they’ve suggested may yield significant returns in the coming years.
When you consider this, remember past recommendations—like Netflix on December 17, 2004, which would have turned a $1,000 investment into $661,694, or Nvidia on April 15, 2005, that would now be worth $1,082,963 if you invested at the right time.
It’s interesting to note that the overall average return for Stock Advisor sits at 1,067%, far surpassing the S&P 500’s 190% during that same timeframe. It’s worth checking out the latest top 10 list from the Stock Advisor.
View 10 shares »
*Stock Advisor returns as of September 15, 2025
For the record, Motley Fool has interests in a variety of companies including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Growth ETF. Disclosure noted per policy.
