1 ETF to Buy Before the End of 2025
Key Points
This is a powerful growth-oriented exchange-traded fund (ETF).
It holds more than 300 stocks, many of them high-powered tech stocks.
Why look for a needle when you can buy the haystack?
- 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF ›
If you're in the market for a compelling growth stock to invest in before 2025 ends, I'd like to suggest the Vanguard Growth ETF (NYSEMKT: VUG). It's not a standard common stock, though. It's an exchange-traded fund (ETF): a mutual fund-like security that trades like a stock. In many ways, it's better than a single growth stock.
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That's because, if you buy into the wrong growth stock, it may disappoint you. Not every growth stock goes to the moon, after all. Buying into a basket of growth stocks will spread your hard-earned dollars across multiple promising businesses.
Check out the long-term performance of this ETF in the table below. I'm including the performance of an S&P 500 index fund for comparison.
|
ETF |
5-Year Avg. Annual Return |
10-Year Avg. Annual Return |
15-Year Avg. Annual Return |
|---|---|---|---|
|
SPDR S&P 500 ETF (NYSEMKT: SPY) |
15.98% |
14.65% |
14.64% |
|
Vanguard Growth ETF |
16.69% |
17.25% |
16.90% |
Source: Morningstar.com, as of Sept. 9, 2025. ETF = exchange-traded fund.
See? It's impressive! That's because it encompasses more than 300 stocks, with much of its assets held in Apple, Nvidia, and Microsoft, as well as the rest of the "Magnificent Seven" stocks. Check out its top holdings.
|
Stock |
Percent of ETF |
|---|---|
|
Nvidia |
12.64% |
|
Microsoft |
12.18% |
|
Apple |
9.48% |
|
Amazon |
6.72% |
|
Meta Platforms |
4.62% |
|
Broadcom |
4.39% |
|
Alphabet Class A |
3.34% |
|
Tesla |
2.69% |
|
Alphabet Class C |
2.67% |
|
Eli Lilly |
2.01% |
Source: Vanguard.com. As of July 31, 2025. ETF = exchange-traded fund.
An investment in the Vanguard Growth ETF will quickly make you a part-owner of Nvidia, Apple, and lots of other promising technology companies. Do remember that such growth stocks can be volatile. So, for the best results, aim to hang on for many years.
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Selena Maranjian has positions in Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Index Funds - Vanguard Growth ETF. The Motley Fool recommends Broadcom 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.
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