Investors are grappling with a big question right now: Are U.S. growth stocks overvalued?
The artificial intelligence (AI) trade has driven massive gains for growth stock investors in the past few years, but there are reasons to wonder if that momentum can continue
Recent Vanguard research projects that U.S. value stocks will outperform U.S. growth stocks over the next 10 years. Two low-cost Vanguard exchange-traded funds (ETFs) offering different approaches to investing in U.S. growth stocks are the Vanguard Growth ETF (NYSEMKT: VUG) and the Vanguard Total Stock Market ETF (NYSEMKT: VTI). The Vanguard Growth ETF holds a tech-heavy targeted portfolio of 147 growth stocks, while the Vanguard Total Stock Market ETF offers a more diversified portfolio of 3,531 growth and value stocks.
In the past year, the Vanguard Total Stock Market ETF has outperformed the Vanguard Growth ETF. Let’s compare these two low-cost Vanguard ETFs and see which could be a better choice for your portfolio. Vanguard Growth ETF: 147 growth stocks, 22 years of 12.08% annualized returns The Vanguard Growth ETF is focused on America’s largest growth stocks.