ETFs are usually associated with passive, quiet and gradual investing. But it doesn't always have to be that way. ETFs can focus on all sorts of things. And even aggressive growth investments, which is something we're going to look at together right now!
Vanguard Growth ETF $VUG
The Vanguard Growth ETF is an ETF(exchange-traded fund) that focuses on growth stocks of large U.S. companies. This fund was founded by Vanguard in 2004 and has since become a popular choice for investors looking for diversified exposure to growth stocks.
TheVanguard Growth ETF uses - like all ETFs - a passive investment strategy, meaning it seeks to replicate the performance of a particular market or index.
While we're at it - let's review what ETFs are in general for the sake of argument:
An exchange-traded fund, or ETF for short, is an investment fund that trades on an exchange similar to a common stock. ETFs combine the benefits of stocks and mutual funds, meaning investors can get the portfolio diversification,…
$VUG YTD almost +30%, with such diversification a very decent return.
Occasionally, it's a good idea to pause on slightly riskier but more growth ETFs. Something has to make the growth in the portfolio work.