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On July 18, 2024
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1 No-Brainer Large-Cap Growth ETF to Buy Right Now for Less Than $200 | The Motley Fool
This ETF has outperformed major indexes in the past and is doing the same today. The S&P 500 not only confirmed a bull market earlier in the year, but it also delivered a very solid first half. The index rose by double digits, marking one of the best such periods in the past 25 years. This year's first half was the fifth best during that time, according to J.P. Morgan Wealth Management, with the index climbing more than 14%. And much of this movement was led by growth stocks as investors became more optimistic about the general economy -- and placed bets on the promising area of artificial intelligence (AI). But if you're looking to add some growth to your portfolio, don't worry; it's not too late to get in on the action. And here's even more good news: You don't have to invest thousands of dollars or do the heavy lifting needed to build a portfolio from scratch. Instead, with one purchase, you can gain exposure to more than 200 exciting growth stocks. This particular investment has proven itself, too, outperforming both the S&P 500 and the Nasdaq so far this year and over the past five years. What asset am I talking about? The Schwab U.S. Large-Cap Growth ETF (SCHG -2.64%), and you can pick up a share of this exchange-traded fund (ETF) right now for well under $200. Let's find out more. First, a quick note about ETFs. These are funds that trade on the market just like a stock, so you can buy them as you would a stock. The difference is, as mentioned, they offer you ownership of many equities according to a specific theme. This could be one particular industry, or, like the fund we'll talk about here, a focus on growth and market capitalization. Before you consider buying an ETF, though, it's important to remember one other point that separates these assets from stocks, and that's cost. This is because they are managed either actively or passively, resulting in fees. (Passively managed funds attempt to mimic the performance of a benchmark, while actively managed funds try to beat the benchmark.) You'll want to choose an ETF with an expense ratio of less than 1% so that these costs won't eat heavily into your returns over time. And this brings me back to the Schwab U.S. Large-Cap Growth ETF, which easily fits our criteria, with an expense ratio of only 0.04%. This passively managed fund aims to replicate the returns of the Dow Jones U.S. Large-Cap Growth Total Stock Market index. This ETF not only mimics its benchmark but, as mentioned earlier, it's also shown its ability to generate returns superior to the S&P 500 and the Nasdaq this year and over time. For example, the ETF has advanced 25% in 2024 so far and 143% over the past five years. That's compared to gains of 18% and 87%, respectively, for the S&P 500. As you might have guessed, the Schwab ETF is heavily invested in today's top growth industry: Information technology companies make up more than 46% of the portfolio. Tech businesses, especially those active in AI, have driven stock market gains in recent years, and that's helped this ETF to climb. Among the fund's biggest positions are Microsoft, Nvidia, and Amazon -- companies that already are benefiting from demand for AI products and services. But with its broad focus on large-cap growth stocks, you don't have to worry about being too heavily exposed to only one sector or technology. For example, pharmaceutical giant Eli Lilly is among the ETF's top 10 holdings. The company has generated double-digit revenue gains in recent quarters thanks to its in-demand weight loss drugs. And the ETF is invested across 11 different industries, with sectors like consumer discretionary and healthcare each making up more than 12% of the fund. So, by investing in this ETF, you're adding exposure to today's high-powered AI players, as well as a broad selection of growth stocks in a variety of industries to your portfolio. Bull markets historically have lasted much longer than bear markets, so today's growth environment may have much further to go, and investing in the Schwab ETF will offer you an opportunity to benefit from that. Even better, this fund's long-term track record and the diversity of its holdings mean it also could deliver over time, and that makes it a no-brainer growth buy right now.
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1 No-Brainer Large-Cap Growth ETF to Buy Right Now for Less Than $200
The S&P 500 not only confirmed a bull market earlier in the year, but it also delivered a very solid first half. The index rose by double digits, marking one of the best such periods in the past 25 years. This year's first half was the fifth best during that time, according to J.P. Morgan Wealth Management, with the index climbing more than 14%. And much of this movement was led by growth stocks as investors became more optimistic about the general economy -- and placed bets on the promising area of artificial intelligence (AI). But if you're looking to add some growth to your portfolio, don't worry; it's not too late to get in on the action. And here's even more good news: You don't have to invest thousands of dollars or do the heavy lifting needed to build a portfolio from scratch. Instead, with one purchase, you can gain exposure to more than 200 exciting growth stocks. This particular investment has proven itself, too, outperforming both the S&P 500 and the Nasdaq so far this year and over the past five years. What asset am I talking about? The Schwab U.S. Large-Cap Growth ETF (NYSEMKT: SCHG), and you can pick up a share of this exchange-traded fund (ETF) right now for well under $200. Let's find out more. First, a quick note about ETFs. These are funds that trade on the market just like a stock, so you can buy them as you would a stock. The difference is, as mentioned, they offer you ownership of many equities according to a specific theme. This could be one particular industry, or, like the fund we'll talk about here, a focus on growth and market capitalization. Before you consider buying an ETF, though, it's important to remember one other point that separates these assets from stocks, and that's cost. This is because they are managed either actively or passively, resulting in fees. (Passively managed funds attempt to mimic the performance of a benchmark, while actively managed funds try to beat the benchmark.) You'll want to choose an ETF with an expense ratio of less than 1% so that these costs won't eat heavily into your returns over time. And this brings me back to the Schwab U.S. Large-Cap Growth ETF, which easily fits our criteria, with an expense ratio of only 0.04%. This passively managed fund aims to replicate the returns of the Dow Jones U.S. Large-Cap Growth Total Stock Market index. Outperforming the S&P 500 and Nasdaq This ETF not only mimics its benchmark but, as mentioned earlier, it's also shown its ability to generate returns superior to the S&P 500 and the Nasdaq this year and over time. For example, the ETF has advanced 25% in 2024 so far and 143% over the past five years. That's compared to gains of 18% and 87%, respectively, for the S&P 500. As you might have guessed, the Schwab ETF is heavily invested in today's top growth industry: Information technology companies make up more than 46% of the portfolio. Tech businesses, especially those active in AI, have driven stock market gains in recent years, and that's helped this ETF to climb. Among the fund's biggest positions are Microsoft, Nvidia, and Amazon -- companies that already are benefiting from demand for AI products and services. Exposure to many industries But with its broad focus on large-cap growth stocks, you don't have to worry about being too heavily exposed to only one sector or technology. For example, pharmaceutical giant Eli Lilly is among the ETF's top 10 holdings. The company has generated double-digit revenue gains in recent quarters thanks to its in-demand weight loss drugs. And the ETF is invested across 11 different industries, with sectors like consumer discretionary and healthcare each making up more than 12% of the fund. So, by investing in this ETF, you're adding exposure to today's high-powered AI players, as well as a broad selection of growth stocks in a variety of industries to your portfolio. Bull markets historically have lasted much longer than bear markets, so today's growth environment may have much further to go, and investing in the Schwab ETF will offer you an opportunity to benefit from that. Even better, this fund's long-term track record and the diversity of its holdings mean it also could deliver over time, and that makes it a no-brainer growth buy right now. Should you invest $1,000 in Schwab Strategic Trust - Schwab U.s. Large-Cap Growth ETF right now? Before you buy stock in Schwab Strategic Trust - Schwab U.s. Large-Cap Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Schwab Strategic Trust - Schwab U.s. Large-Cap Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $774,281!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Vanguard Growth ETF (VUG) emerges as a compelling investment option for those seeking exposure to large-cap growth stocks. With its low expense ratio and strong performance, it's attracting attention from investors and financial experts alike.
The Vanguard Growth ETF (VUG) has been gaining significant attention in the investment world as a top choice for those looking to capitalize on large-cap growth stocks. This exchange-traded fund (ETF) offers investors a diversified portfolio of growth-oriented companies at a remarkably low cost 1.
VUG tracks the CRSP US Large Cap Growth Index, which includes approximately 260 stocks. The fund focuses on companies with strong growth potential, primarily in sectors such as technology, consumer discretionary, and healthcare. Notable holdings include tech giants like Apple, Microsoft, Amazon, and Nvidia, which collectively make up a significant portion of the fund's assets 2.
The Vanguard Growth ETF has demonstrated impressive performance over the years. Since its inception in 2004, it has delivered an average annual return of 11.4%. More recently, the fund has shown even stronger results, with a 15.1% average annual return over the past decade. This performance has outpaced many of its peers and the broader market 1.
One of the most attractive features of VUG is its extremely low expense ratio of just 0.04%. This means that for every $10,000 invested, investors only pay $4 in annual fees. Such cost-efficiency allows investors to keep more of their returns, making VUG an economical choice for both short-term and long-term investment strategies 2.
As of July 2024, the Vanguard Growth ETF boasts over $190 billion in assets under management, solidifying its position as one of the largest growth-focused ETFs in the market. The fund's focus on innovative and fast-growing companies positions it well to potentially benefit from future technological advancements and economic growth 1.
While VUG offers numerous advantages, potential investors should be aware of its concentration in the technology sector, which can lead to increased volatility. Additionally, growth stocks may underperform during certain market conditions, such as periods of rising interest rates or economic downturns 2.
Financial experts generally view the Vanguard Growth ETF favorably. Many cite its low costs, strong performance history, and exposure to high-growth companies as key reasons for considering this fund. However, they also emphasize the importance of aligning investment choices with individual financial goals and risk tolerance 1 2.
Reference
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As the S&P 500 enters a bull market, investors are eyeing Vanguard ETFs as potentially lucrative options. Two specific funds are gaining attention for their strong performance and diversification benefits.
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Exploring the benefits of investing in ETFs for those starting their investment journey later in life. This article focuses on the advantages of ETFs, particularly in the technology sector, for building wealth efficiently.
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A Vanguard index fund has seen an extraordinary 1500% increase over 15 years, largely due to the performance of AI-related stocks like Nvidia and recent stock splits. This growth highlights the potential of index fund investing and the impact of the AI boom on the market.
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A comprehensive look at the best stocks to invest in across different budget ranges, from $1,000 to $50,000. The article highlights top picks in AI, growth stocks, and established market leaders.
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Investors seeking growth opportunities in the stock market have several compelling options. This article explores top stock picks recommended by financial experts for those looking to invest $500 to $1000 in the current market climate.
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