1 No-Brainer Growth-Oriented S&P Index Fund to Buy Right Now for Less Than $500
Key Points
The Vanguard S&P 500 Growth Index Fund ETF is focused on the faster-growing components of the S&P 500 index.
Its sports a low fee, which means you keep most of its gains.
It's heavily weighted in technology, so be sure that appeals to you.
- 10 stocks we like better than Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF ›
Looking for a compelling index fund in which to invest? Don't have much money with which to do so? Then consider the Vanguard S&P 500 Growth Index Fund ETF (NYSEMKT: VOOG).
Here's a look at why this exchange-traded fund (ETF) is compelling and how it might boost your wealth over time, along with a look at index funds themselves.
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Why index funds?
Most of us don't have the time or interest or skills to study the universe of stocks for the most promising ones. But we still want to park some investments in our portfolios that are likely to grow at a brisk pace.
Enter index funds. An index fund, whether it's in mutual-fund form or ETF form, is a fund that tracks a particular index. So an S&P 500 index fund, for example, would load up on the same 500 stocks that are in the index, in roughly the same proportion. Thus, it can aim to deliver roughly the same performance as the index, less its fees. (And the best index funds have ultra-low fees.)
With an index fund, you're instantly invested in a bunch of companies and can profit as they do, all with little work required. Great, right?
Why invest in the Vanguard S&P 500 Growth Index Fund ETF?
The S&P 500 index has averaged annual gains of close to 10% over many decades. If you'd like to try for bigger returns (no guarantees, though!), consider the Vanguard S&P 500 Growth Index Fund ETF. Sporting a low expense ratio (annual fee) of 0.07%, it starts with the 500 companies in the S&P 500 and only invests in a faster-growing portion of them.
It recently held shares of 140 different companies. Fully 62% of its value was recently in only its top 10 holdings, and a whopping 14.5% of its assets were in Nvidia. Some will see that as a worrisome degree of concentration, while others will be pleased to own a lot of Nvidia, as its future remains quite promising.
Here's how the fund has performed. I'm including returns of a regular S&P 500 ETF, too, for comparison:
|
ETF |
5-Year Avg. Annual Return |
10-Year Avg. Annual Return |
15-Year Avg. Annual Return |
|---|---|---|---|
|
Vanguard S&P 500 ETF (NYSEMKT: VOO) |
13.80% |
15.58% |
13.75% |
|
Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) |
13.45% |
17.36% |
15.39% |
Data source: Morningstar.com, as of Feb. 4, 2026.
Here are the ETF's recent top holdings:
|
Stock |
Weight in ETF |
|---|---|
|
Nvidia |
14.47% |
|
Microsoft |
11.48% |
|
Apple |
6.41% |
|
Alphabet Class A |
5.82% |
|
Broadcom |
5.22% |
|
Alphabet Class C |
4.66% |
|
Meta Platforms |
4.59% |
|
Amazon |
3.80% |
|
Berkshire Hathaway Class B |
2.94% |
|
Eli Lilly |
2.73% |
Data source: Vanguard.com, as of Dec. 31, 2025.
If those kinds of stocks strongly appeal to you, this may be a great ETF for you. Note, though, that even the best growth stocks will often pull back more sharply during a market downturn -- though they'll generally bounce back and set new highs after.
If you're more risk-tolerant, perhaps check out some excellent dividend-focused ETFs that also sport solid growth rates.
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Selena Maranjian has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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