The S&P 500 certainly gets most of the attention from investors looking to assess how the stock market is doing. And with this broad index in record territory, it's in the spotlight even more right now.

But for investors that are thinking about gaining broad exposure to the market with a growth-oriented focus, the Vanguard Growth ETF (VUG 0.38%) deserves a much closer look. This exchange-traded fund has produced a total return of 311% in the past 10 years, turning a $10,000 initial cash outlay into about $41,000 today.

Let's dive deep into this impressive investment vehicle. Perhaps it's time you considered buying some shares today.

Give me growth

It's easy to see how the Vanguard Growth ETF has performed so well in the past. The fund's portfolio composition tells the story.

The Vanguard Growth ETF owns 208 different businesses, which gives investors diversification. However, 55.8% and 20% of its asset value is represented by stocks in the technology and consumer discretionary sectors, respectively. Compared to companies in the financial services, consumer staples, or utilities sectors, these industries exhibit much better expansion potential.

Not only that, but a whopping 51.7% of the Vanguard Growth ETF is represented by the so-called "Magnificent Seven" stocks. These industry-leading firms have seen their share prices soar in recent years, providing this ETF with a boost.

Investors who want exposure to these types of companies but don't have the time or ability to analyze individual securities could do much worse than buy shares in the Vanguard Growth ETF. It's essentially a bet on the ongoing growth and innovation of American capitalism, which has clearly worked out in the past.

Key factors to keep in mind

To be clear, owning the Vanguard Growth ETF, in addition to other index funds or ETFs, might be the smart approach. With this investment product in particular, investors can have peace of mind knowing that the expense ratio of 0.04% is extremely low. This means shareholders get to keep more of their returns over time, which is a positive outcome.

It's also best not to forget that the Vanguard Growth ETF might only be appropriate for investors that are more tolerant of risk in their portfolios. The businesses in this fund operate in industries that typically undergo rapid change due to shifting consumer behavior and preferences, as well as new technological innovations. This means there's always the possibility of heightened volatility along the way.

As of this writing, the Vanguard Growth ETF trades near its all-time highs. Moreover, the price-to-earnings ratio of the average holding sits at 37.3, much more than the average multiple of the S&P 500. This can discourage prospective investors from wanting to put some money to work right now.

However, I still believe it's a good idea to consider investing. Even at record levels, the stock market overall, and the Vanguard Growth ETF more specifically, will reward shareholders over many decades.

If you're concerned about valuation levels, then think about a dollar-cost-average strategy. This entails adding small sums of capital at regular intervals, say monthly or quarterly, to take advantage of different entry price points. It eliminates the need to have to correctly time market dips.

For those investors who want diversified exposure to some of the most dominant growth businesses out there, the Vanguard Growth ETF is a smart choice. If you maintain a long-term time horizon, your portfolio is likely to reward you, if history is any indication.