Vanguard S&P 500 Growth ETF

VOOG

Market cap $26.1B

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth Index Fund ETF Shares (VOOG) is a passively managed exchange traded fund launched on September 9, 2010.

Vanguard S&P500 Growth Index ETF offers strong long-term returns but lags top tech-focused ETFs like FTEC and XLK. VOOG's portfolio is heavily weighted toward technology and AI leaders, with NVIDIA, Alphabet, and Broadcom as top holdings. Despite a low 0.07% expense ratio and solid earnings growth, VOOG's recent 3-year performance trails more concentrated tech ETFs.

Forward splits for five of Vanguard's most-popular ETFs go into effect today (April 21), making shares more accessible to retail investors. These equity index ETF splits should lead to tighter bid-ask spreads, which is another benefit to everyday investors.

Chip stocks have contributed to the Vanguard Information Technology ETF's long-term outperformance. Three of the ETFs offer an inexpensive way to get exposure to a diversified basket of leading growth stocks.

The five popular ETFs are splitting 4-for-1, 5-for-1, 6-for-1, and 8-for-1. Shareholders' positions won't really change much in value.

Excitement for high-profile stock splits has played a role in lifting the broader market to new heights. Five of Vanguard's 113 U.S.-listed ETFs will undergo forward stock splits in less than two weeks.

The Vanguard S&P 500 Growth ETF and the Vanguard Mega-Cap Growth ETF will undergo 6-for-1 stock splits on April 21. These Vanguard index funds are heavily weighted toward the technology sector, and they crushed the S&P 500 during the cloud computing boom.

Vanguard's growth-focused ETFs have rewarded patient investors. There are significant differences in allocation between the Vanguard Growth ETF and the Vanguard S&P 500 Growth ETF.

Vanguard S&P 500 Growth Index Fund ETF Shares (NYSEARCA:VOOG) offers a yield of just 0.46%, a byproduct of owning growth companies rather than a reason to own the fund, and investors evaluating that income need to understand what drives it before deciding if it fits their strategy.

The S&P 500 is an index of 500 American stocks from 11 different sectors of the economy, so it's highly diversified. The S&P 500 Growth index invests in 139 of the best-performing growth stocks from the S&P 500 and disregards its other 361 stocks.