VONG ETF Review | BEST Growth ETFs

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Time Stamps:
00:00 Lesson 1
03:43 Lesson 2
05:08 Lesson 3
06:19 Lesson 4

So what is the VONG ETF?
VONG is a Vanguard managed ETF that tracks an index of US large- and midcap stocks selected from the Russell 1000 Index with high growth characteristics. In layman’s terms the ETF is constructed to follow the Russel 1000 index, just like the VOO ETF is constructed to follow the S&P500 index.

Firstly, let me explain what the Russel 1000 index is. Well, this index represents the 1000 top companies by market capitalization in the United States. So basically it is the 1000 largest companies within the US.

So VONG basically copies these 1000 companies, BUT what you might not be aware of is. The VONG ETF does not copy all 1000 companies of the Russel 1000 but only 503 of them. It chooses the 503 companies that has higher forecasts for medium-term growth and higher historical growth as compared to other companies in the index.

What is inside the VONG ETF?
Using the website ‘etf.com’ I can have a look at all the companies that are inside the ETF. Now 503 companies are a lot of names to go through. So what I usually do is to scan through the list and try to find some familiar names. Here you can see we have Apple, Tesla and a bunch more familiar companies that you would also find in an ETF like VOO. You might think it will deliver the same growth as VOO then, BUT in actuality, VONG has outperformed VOO with 3% annually over a 10 year period.

At current Apple, Microsoft and Amazon hold the biggest portion of the VONG ETF and like we already know this ETF is 100% US based.

So you can do a lot more research on your own on what other companies you will find in VONG.

How has VONG performed in the past?
We already saw that VONG has outperformed VOO over a decade but let’s look at its overall performance.

In 2021 VONG had grown with 28.87%.
Over the last 5 years VONG had grown more than 24% annually.
And over ten years, VONG had grown by over 19% annually.

This kind of growth excites me and is part of the reason why I added it to my portfolio close to 1 year ago.

How much does it cost to invest in to VONG?
As you might be aware, ETFs do have a cost to invest in to them. But that is one of the reasons I like to invest in to ETF because they are not expensive at all. The Vanguard ETFs are usually some of the cheaper ETFs around as well.

VONG has an Expense Ratio of 0.08%. That means for every $1000 I invest in to VONG it will cost me 80 cents annually.

The reason the VONG ETF is not really expensive to invest in to is because the ETF is passively managed and not actively managed. Passively managed ETFs are quite cheap because they don’t require active engagement by any one person. It is done by AI.

Thanks for watching :)