VUG

Vanguard Growth ETF (VUG) is an exchange-traded fund that seeks to track the performance of an index composed of U.S. companies with growth characteristics. The ETF is managed by Vanguard and trades under the ticker VUG on the NYSE Arca exchange.

Classified as a U.S. equity ETF focused on growth-oriented stocks, VUG aims to reflect, before fees and expenses, the performance of U.S. companies with growth characteristics. To achieve this objective, the fund follows a passive management strategy, maintaining a portfolio designed to replicate the composition and weighting of its reference index.

The index is composed of large-cap U.S. companies selected based on growth-related criteria, such as revenue and earnings expansion. Weighting follows the index methodology, and its composition is subject to periodic reviews, adjustments, and rebalancing, which are mirrored by the ETF. 

Diversification and sector exposure

VUG’s sector exposure reflects the composition of the U.S. growth equity index, primarily spanning the following sectors:

• Information technology.

• Consumer discretionary.

• Communication services.

• Health care.

• Financial services.

Structure and costs

The fund charges a management fee consistent with passive ETFs and does not apply a performance fee. VUG distributes income, primarily in the form of dividends.

History and evolution of the ETF

In recent years, VUG has tracked the performance of large-cap growth stocks in the United States, influenced by technology and innovation-driven companies. Shifts in monetary policy and rotations between growth and value factors affected the fund’s behavior.