VUG ETF: A Guide to Vanguard Growth Index Fund ETF Shares

Overview

Vanguard Growth Index Fund ETF Shares (VUG) offers exposure to large US companies with growth characteristics. The fund’s profile is shaped by a strong technology weighting and substantial positions in a handful of household-name businesses. Its reported expense ratio is low, but portfolio concentration and US-dollar exposure are important considerations for Australian investors.

Category

VUG provides exposure to large US companies selected for growth characteristics. Its portfolio reflects a growth-oriented market segment in which technology and other large companies feature prominently, rather than a balanced spread across sectors or regions.

The supplied return figures show gains across the reported periods: 12.642% year to date, 13.435% over one year and 26.711% annualised over three years. The five- and ten-year annualised returns are 14.462% and 17.884%, respectively. These figures describe past performance, not a forecast. With technology accounting for 57.566% of sector exposure and the ten largest positions making up 63.623% of the portfolio, returns may be particularly sensitive to the fortunes of a relatively small group of large companies.

Key facts

Ticker

VUG

Exchange

US

ISIN

US9229087369

Category / focus

US Equity

Provider

Vanguard

Domicile

United States

Currency

USD

Inception date

2004-01-26

UCITS

No

Holdings count

134

Costs

TER

0.03%

Net expense ratio

0.03%

AUM

221.3B

The supplied net expense ratio is 0.03%. Australian investors may also incur brokerage and currency-conversion costs, which are not reflected in that figure.

Performance

YTD

4.9%

1 year

3.8%

3 years

21.6%

5 years

10.8%

10 years

18.2%

Dividend yield

0.42%

Top 10 concentration

61.3%

Holdings

1. NVIDIA Corporation12.81%

   Ticker

   NVDA

   Sector

   Technology

   Country

   United States

2. Apple Inc.11.94%

   Ticker

   AAPL

   Sector

   Technology

   Country

   United States

3. Microsoft Corporation9.27%

   Ticker

   MSFT

   Sector

   Technology

   Country

   United States

4. Alphabet Inc Class A5.18%

   Ticker

   GOOGL

   Sector

   Communication Services

   Country

   United States

5. Broadcom Inc4.46%

   Ticker

   AVGO

   Sector

   Technology

   Country

   United States

6. Amazon.com Inc4.25%

   Ticker

   AMZN

   Sector

   Consumer Cyclical

   Country

   United States

7. Meta Platforms Inc.4.16%

   Ticker

   META

   Sector

   Communication Services

   Country

   United States

8. Alphabet Inc Class C3.92%

   Ticker

   GOOG

   Sector

   Communication Services

   Country

   United States

9. Advanced Micro Devices Inc2.67%

   Ticker

   AMD

   Sector

   Technology

   Country

   United States

10. Tesla Inc2.66%

    Ticker

    TSLA

    Sector

    Consumer Cyclical

    Country

    United States

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

The portfolio is concentrated among major US companies: its ten largest holdings make up 63.623% of assets. NVIDIA, Apple and Microsoft are the largest positions, followed by Alphabet, Amazon and Broadcom. Technology represents 57.566% of sector exposure, with additional sizeable allocations to communication services and consumer cyclical companies.

Regions

• North America102.8%
• Latin America0.1%

• Japan0.0%

• Australasia0.0%

• Asia Emerging0.0%

• Asia Developed0.0%

• United Kingdom0.0%

• Europe Emerging0.0%

• Europe Developed0.0%

• Africa/Middle East0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Asset allocation

• Stock US102.1%
• Stock non-US0.2%

• Cash0.1%

• Other0.0%

• Bond0.0%

• NotClassified0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Sectors

• Technology61.4%

• Communication Services15.2%

• Consumer Cyclicals10.2%

• Healthcare4.5%

• Industrials4.3%

• Financial Services3.7%

• Consumer Defensive1.3%

• Real Estate0.9%

• Basic Materials0.4%

• Energy0.3%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Related ETFs

VUG’s defining feature is its large-cap US growth focus, with substantial exposure to technology and a sizeable allocation to its largest companies. When comparing it with other broad US equity funds, consider how their investment approach, sector mix, concentration and costs differ.

Risks

Who it may suit

VUG may interest investors researching exposure to large US growth companies, particularly those comfortable with a portfolio concentrated in a small number of major technology and communications businesses. Australian investors should also consider that the fund is denominated in US dollars, so currency movements can affect returns measured in Australian dollars. This is general information, not personal financial advice.

Key risks

The main portfolio risks are concentration in the largest holdings and substantial technology-sector exposure; weakness among leading companies or across that sector could weigh on the fund. As a US-focused ETF traded in US dollars, it also exposes Australian investors to movements in the AUD/USD exchange rate. Growth shares can be volatile, and past returns do not guarantee future results.

FAQ