Meet the Growth ETF That's Turned $1,000 Into $5,400 Over 10 Years. History Says the Next Decade Could Be Even Better.
The Vanguard Russell 1000 Growth ETF (VONG) may not have the name recognition, but it's got the track record.
Overview
The past decade has been very kind to U.S. stocks, but particularly to those of fast-growing companies. Despite the 2022 bear market and the 2020 COVID-19 pandemic, many growth and tech stocks have doubled, tripled, and even more.
One of those is the Vanguard Russell 1000 Growth ETF (NASDAQ: VONG). Its focus on large-cap companies with favorable growth fundamentals that aren't overpriced has been exactly what investors have been favoring for years.
Details
One unique feature is the use of the price-to-book (P/B) ratio in its selection criteria. Most growth ETFs focus primarily on sales and revenue growth to define growth. The Vanguard Russell 1000 Growth ETF also considers valuation in its methodology. While it's not given enough weight to tilt the overall portfolio too far toward the value side of the pendulum, it does help ensure the fund isn't dipping too deeply into overvalued names.
Source
Originally published at www.fool.com.