If I Were in My 20s, I'd Buy This Unstoppable Vanguard ETF and Hold It Forever
This exchange-traded fund exclusively invests in America's largest growth companies.
Overview
The S&P 500 (SNPINDEX: ^GSPC) is made up of 500 companies from 11 different sectors of the economy, so it's highly diversified. But then there is the S&P 500 Growth index, which exclusively holds 148 of the best-performing growth stocks from the regular S&P 500, while disregarding its other 352 stocks.
As a result, the Growth index typically delivers higher returns than the S&P 500 over the long term. It can also experience more volatility, but that might be a worthwhile trade-off for young investors in their 20s, because the additional gains can lead to a far better financial position in retirement and beyond.
Details
The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) is an exchange-traded fund (ETF) that mimics the Growth index, and here's why I would buy and hold it forever if I were in my 20s today.
Source
Originally published at www.fool.com.