Prediction: Investing in These 2 Unstoppable Vanguard ETFs Could Set You Up for Life

Key Points

• The S&P 500 Growth ETF takes the best of the S&P 500, resulting in higher growth.

• Vanguard's IT-focused ETF is among the riskiest, but also the highest gainers among all Vanguard ETFs.

• 10 stocks we like better than Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF ›

Exchange-traded funds (ETF) have become a major element of many long-term investing portfolios. There are many benefits to owning ETFs, but ETFs are not all the same. There are actively managed funds, like popular investor Cathie Wood's Ark Invest ETFs, and passively managed ETFs, like Vanguard's.

Vanguard offers 98 options that cover every stripe of investor, from high-risk tech-focused ETFs to high-dividend yield ETFs, and they all track indexes. They offer different benefits for investors, and if you're looking for two options that could help set you up for life, I recommend the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) and the Vanguard Information Technology ETF (NYSEMKT: VGT).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

The best of the S&P 500

As its name implies, the S&P 500 Growth ETF owns the growth-oriented stocks in the S&P 500. It owns 213 stocks as of this writing, and they lean toward the largest stocks in the index, since these are predominantly the higher-growing ones. Its largest positions are Nvidia, Microsoft, Meta, and Apple, but it also owns dividend stocks like Moody's and Sherwin-Williams, which help mitigate some of the risk.

Owning 200 stocks is wide diversification, even if it's not as diversified as the total S&P 500. That also minimizes some of the risk of investing in high-growth stocks.

And because it tracks an index rather than being actively managed, stocks that aren't doing as well will get automatically traded out of the index and out of the ETF, while new stocks making it into the index will end up in your portfolio.

These features give it an edge over the standard Vanguard S&P 500 ETF, and it has outperformed the index over time. In fact, it's the fifth-highest-gaining Vanguard ETF over the past 10 years.

^SPX data by YCharts

It also has a low expense ratio of 0.07%, which compares favorably with the industry average of 0.93%.

It has Vanguard's second-highest risk level, so it's not for the most risk-averse investor. But it is for investors looking to help get set for life.

High in tech, high in gains

Of all the Vanguard ETFs that have been in operation for at least 10 years, the highest-gaining one is the Information Technology (IT) ETF. This is Vanguard's tech ETF, and its three largest components are the same as the growth ETF, but they make up a higher percentage of the total -- around 45% -- and after those, things start to change. This one includes artificial intelligence (AI) stocks like Palantir Technologies and Advanced Micro Devices in its top 10. It also includes many new upstarts that most investors haven't even heard of, although they account for minuscule percentages of the whole. However, it has more total components than the growth ETF, 316 today, which gives investors exposure to many new stocks that could explode into the next important tech stocks, and also helps minimize overall risk.

The IT ETF has Vanguard's highest risk status, and one of its highest expense ratios at 0.09%. However, it says the industry average is 0.93%.

It also has the highest gain among all of Vanguard's 98 ETFs over the past decade.

^SPX data by YCharts.

This ETF isn't for investors who don't have an appetite for risk, but over time, these stocks have outperformed the market. Growth stocks tend to lead the market in either direction, outperforming when the market is soaring and doing worse than the market when it's plunging. This ETF can potentially outperform other investments and build wealth for investors, and it can be a significant asset in your portfolio due to the market's typical strong performance over many years.

Should you invest $1,000 in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF right now?

Before you buy stock in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,872!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,092,280!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

Jennifer Saibil has positions in Apple and Vanguard Admiral Funds-Vanguard S&P 500 Growth ETF. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Moody's, Nvidia, Palantir Technologies, and Vanguard S&P 500 ETF. The Motley Fool recommends Sherwin-Williams and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.