1 Unstoppable Vanguard ETF to Confidently Buy With $400 During the Stock Market Sell-Off

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Anthony Di Pizio, The Motley Fool

Wed, Mar 26, 2025, 2:31 AM 6 min read

The S&P 500 (SNPINDEX: ^GSPC) scale returned 25% (including dividends) successful 2024, which was much than treble its semipermanent mean of 10.5%. However, the CRSP U.S. Large Cap Growth Index delivered an adjacent amended summation of 32% past year, acknowledgment to its overmuch larger holdings successful soaring stocks similar Nvidia, Meta Platforms, and Amazon.

The Vanguard Growth ETF (NYSEMKT: VUG) is an exchange-traded money that tracks the show of the CRSP Growth Index by holding the aforesaid stocks and maintaining akin weightings, and it has outperformed the S&P 500 each year, connected average, since it was established successful 2004.

The Vanguard ETF is presently down 11% from its grounds precocious amid the broader banal marketplace sell-off, truthful investors tin prime up a azygous stock for nether $400. Here's wherefore it mightiness beryllium a large semipermanent summation to immoderate balanced portfolio.

Two investors looking astatine a bid of machine screens with terms charts connected them.

The CRSP U.S. Large Cap Growth Index invests successful the apical 85% of American companies, measured by value. Think of it this way: If we took each publically listed American institution and ranked them by their marketplace capitalization, from the largest to the smallest, the CRSP Growth Index would commencement astatine the apical and determination down the database until it captured 85% of the full marketplace cap.

You mightiness beryllium amazed to cognize determination are lone 179 stocks successful the index, contempt determination being implicit 3,500 publically traded American companies, which highlights the important attraction of wealthiness successful the firm sector. Since emerging trends similar artificial quality (AI) person fostered surging maturation for dozens of tech companies implicit the past mates of years, it's nary astonishment the exertion assemblage has a 57.6% weighting successful the Growth Index (compared to 30.7% successful the S&P 500).

Not to mention, the 3 largest companies successful the satellite are Apple, Microsoft, and Nvidia, and each 3 are successful the exertion sector. They person a combined worth of $9 trillion and person each go leaders successful assorted segments of the AI industry.

Below is simply a database of the apical 5 holdings successful the Vanguard ETF (and the Growth Index), and their weightings compared to the S&P 500:

Stock

Vanguard ETF Portfolio Weighting

S&P 500 Weighting

1. Apple	13.09%	7.24%
2. Microsoft	10.57%	5.85%
3. Nvidia	10.40%	6.07%
4. Amazon	7.19%	3.93%
5. Meta Platforms	5.22%	2.88%

Data source: Vanguard. Portfolio weightings are close arsenic of Feb. 28, 2025, and are taxable to change.

Apple has been preparing for the AI gyration for years by designing a bid of chips for its iPhones, iPads, and Mac computers that present the indispensable computing powerfulness to tally AI applications. The institution is present putting that hardware to the trial aft precocious launching its Apple Intelligence software, which enhances the idiosyncratic acquisition crossed its devices.