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 (VUG -0.14%). 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.
Image source: Getty Images.
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.
