Should you’re like me, you’ll love a portfolio chock-full of terrific progress shares. However reaching that’s simpler mentioned than carried out, since you’ll want a while and talent to check the universe of shares, deciding which of them have essentially the most promise and when you can purchase — and/or promote — them.
Thus, it may be good to stay with one or two nice progress exchange-traded funds (ETFs). (An ETF is a fund that trades like a inventory, making it simple to get out and in of.) Here is a have a look at one in all my favorites — the Vanguard Progress ETF (NYSEMKT: VUG)
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The desk beneath reveals the way it has carried out, and affords comparative numbers for the Vanguard S&P 500 ETF (NYSEMKT: VOO):
|
Time Interval |
Vanguard Progress ETF |
Vanguard S&P 500 ETF |
|---|---|---|
|
Previous 5 years |
12.81% |
13.82% |
|
Previous 10 years |
18.55% |
16.09% |
|
Previous 15 years |
15.40% |
13.77% |
Information supply: Morningstar as of Feb. 9, 2026.
Listed here are some causes I really like this ETF:
-
It sports activities a strong efficiency report.
-
Its expense ratio (annual charge) is simply 0.04%, so you may fork over solely $0.40 yearly for every $1,000 you may have invested within the fund.
-
It is full of enormous, established firms, together with the “Magnificent Seven.”
Listed here are the ETF’s current prime 10 holdings:
|
Inventory |
% of ETF |
|---|---|
|
Nvidia |
12.73% |
|
Apple |
11.88% |
|
Microsoft |
10.63% |
|
Alphabet Class A |
5.39% |
|
Amazon |
4.58% |
|
Alphabet Class C |
4.27% |
|
Meta Platforms |
4.26% |
|
Broadcom |
4.04% |
|
Tesla |
3.77% |
|
Eli Lilly |
2.72% |
Information supply: Morningstar as of Dec. 31, 2025.
After all, the ETF will not be for everybody, and also you would possibly suppose twice if:
-
You are frightened about an imminent market meltdown — as a result of throughout such pullbacks, progress shares usually fall tougher than their counterparts.
-
You do not love very concentrated funds. This ETF not too long ago held about 64% of its property in simply its prime 10 holdings. (It not too long ago held 151 completely different shares.) Certainly, about 35% of its property had been in simply its prime three holdings! This can be a plus, after all, if you happen to’re exceptionally bullish on the way forward for firms equivalent to Nvidia, Apple, and Microsoft.
-
You want some dividend revenue. This ETF’s current yield was simply 0.42%, even lower than the S&P 500’s current 1.1%.
So take a more in-depth look, weigh the fund’s professionals and cons, and see what you suppose. Keep in mind that there are many different promising ETFs on the market, too.