Investors should also pay attention to an ETF's expense ratio. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets. Additionally, growth stocks have a greater level of risk associated with them. While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies. It has amassed assets over $7.08 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.Ĭompanies that find themselves in the large cap category typically have a market capitalization above $10 billion. The Vanguard S&P 500 Growth ETF (VOOG) was launched on, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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