VUG vs. VTI: Which Vanguard ETF Is the Better Buy for Growth Stocks?
Can growth stocks maintain their momentum, or is it time to diversify?
Overview
Investors are grappling with a big question right now: Are U.S. growth stocks overvalued? The artificial intelligence (AI) trade has driven massive gains for growth stock investors in the past few years, but there are reasons to wonder if that momentum can continue.
Recent Vanguard research projects that U.S. value stocks will outperform U.S. growth stocks over the next 10 years. Two low-cost Vanguard exchange-traded funds (ETFs) offering different approaches to investing in U.S. growth stocks are the Vanguard Growth ETF (NYSEMKT: VUG) and the Vanguard Total Stock Market ETF (NYSEMKT: VTI).
Details
The Vanguard Growth ETF holds a tech-heavy targeted portfolio of 147 growth stocks, while the Vanguard Total Stock Market ETF offers a more diversified portfolio of 3,531 growth and value stocks. In the past year, the Vanguard Total Stock Market ETF has outperformed the Vanguard Growth ETF.
Source
Originally published at www.fool.com.