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ETF Specialist

A Broadly Diversified Gold Medalist

A best-in-class expense ratio and low turnover help this large-growth ETF stand out in a crowded, competitive category.

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In a category filled with strong performers, Vanguard Growth ETF (VUG) has emerged as one of the best funds available. Market-cap weighting leverages the collective expertise of a well-defined market, and robust index buffer rules mitigate turnover and the associated costs. This effective strategy comes at an extremely low price, as it carries an expense ratio of just 0.04%.

While the strategy itself is cheap, the stocks it holds are not. However, firms in this portfolio often warrant high valuations, as they are driven by promising growth outlooks and durable competitive advantages. Over 91% of this portfolio boasts a wide or narrow Morningstar economic moat, illustrating the enviable market position of these companies. Some firms will fall short of their lofty expectations, but large-cap stocks tend to be priced accurately due to the wide investor attention they receive.

Ryan Jackson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.