Meet the Ultra-Low-Cost Vanguard ETF That Has 33% of Its Holdings in Nvidia, Apple, and Microsoft

Vanguard Growth ETF (NYSEMKT: VUG) has an incredible track record over the past year. To put a number on that, the exchange-traded fund (ETF) is up nearly 25% over the past 12 months, while the S&P 500 (SNPINDEX: ^GSPC) is up roughly 17%. That's eight percentage points of outperformance, with Vanguard Growth ETF up nearly 50% more than the broader market during the past year.One of the big reasons for the difference comes down to just three stocks: Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT). Here's what you need to know before you buy this outperforming ETF.The S&P 500 index is what most investors use to represent the market. It's a pretty good proxy, but it isn't actually created to be the market. It is a portfolio of roughly 500 stocks selected by a committee to be representative of the U.S. economy. The stocks are market cap-weighted, which is basically how the economy works, since the largest companies have the most impact on both the economy and the index's performance.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool