Growth stocks are powering the market again this year, and it is the same handful of megacap technology companies leading the charge. Artificial intelligence (AI) is driving this rally, which, despite all the hype, is still just getting started. We have only begun to see how AI can change the way businesses operate, and its impact on productivity could be massive over the next decade. That early-stage potential is why growth stocks tied to AI look like they can keep leading the market higher.

Meanwhile, the biggest technology names are at the center of it. Nvidia has become the backbone of AI infrastructure by supplying the chips everyone else needs, while Broadcom has begun helping companies design custom AI chips. Meanwhile, Microsoft, Amazon, and Alphabet have seen huge growth in their cloud computing businesses.

But that's not all -- Meta Platforms has built its own large language model that it has incorporated throughout its social media and ad platforms to drive growth, while Apple is moving to make AI a bigger part of its ecosystem. These companies are helping drive innovation and could be among the market's biggest winners over the next decade.

Artist rendering of a bull market.

Image source: Getty Images.

A great way to invest in AI leaders

If you want a simple way to invest in these leaders, the Vanguard Growth ETF (VUG 0.31%) is a great option. The exchange-traded fund (ETF) tracks the CRSP US Large Cap Growth Index, which is essentially the growth side of the S&P 500. The fund owns about 165 large-cap growth stocks, but how the ETF is structured means the largest AI players dominate its portfolio. The seven above-mentioned stocks -- Nvidia (12.3%), Microsoft (11.5%), Apple (10.5%), Alphabet (6.6%), Amazon (6.5%), Broadcom (4.4%), and Meta Platforms (4.4%) -- represent more than 55% of its portfolio. That makes the Vanguard Growth ETF one of the most direct and efficient ways to own the companies at the forefront of AI.

Another reason I like the Vanguard Growth ETF is its low cost. Its expense ratio is only 0.04%, making it one of the cheapest ways to hold the market's top growth names. Low fees matter because they keep more of the return in your pocket and make a big difference over time as compounding builds.

The Vanguard Growth ETF's performance has been impressive. Over the past 10 years, it has delivered annualized gains of roughly 17%, beating the S&P 500's return. Over the past five years, it has averaged around 25% a year, and in the last 12 months, it gained nearly 23%. A $1,000 investment 10 years ago would now be worth about $4,850, compared to less than $4,000 if you had put the same amount into the S&P 500.

However, the real key is to continue to invest on a consistent basis through dollar-cost averaging. Even relatively small contributions can add up. Putting an additional $500 a month into an ETF that averages a 15% annual return can grow to close to $3 million in 30 years. Bump that investment up to $1,000 a month, and your ending balance would be more than $5.5 million.

With growth stocks leading this market, the Vanguard Growth ETF has the potential to deliver that type of return in the future. The trade-off is that the ETF is less diversified than a total market fund, so if big tech takes a breather or investors rotate into value stocks, it could lag. But with AI still in the early stages and megacaps driving the innovation, growth stocks look well-positioned to keep leading.