If You Invest $2,500 in the Vanguard Morningstar Growth ETF (VUG) Right Now and Hold for 20 Years, Here's How Much Wealth History Suggests You Could Generate
Selena Maranjian, The Motley Fool
Sat, September 19, 2026 at 2:50 PM GMT+3 3 min read
Anyone seeking to grow their wealth without spending hours studying the universe of stocks and making frequent buy-and-sell decisions should consider the Vanguard Morningstar Growth ETF (NYSEMKT: VUG). This compelling exchange-traded fund (ETF) -- a fund that trades like a stock -- is focused on growth.
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Here's the kind of growth I'm talking about -- compared to the annual performance of the venerable Vanguard S&P 500 ETF (NYSEMKT: VOO):
Data source: Morningstar.com as of Sept. 15, 2026.
The fund did lag the S&P 500 over the past five years, but otherwise it has performed quite well.
How will you do if you plunk $2,500 into the ETF now and hang on for 20 years? Well, no one can know for sure, but history suggests it's a promising proposition. Let's use a conservative rate and assume that the ETF grows at an annual average rate of 12%. If so, that $2,500 stake will grow to $24,116 (thanks to compounding).
Meet the Vanguard Morningstar Growth ETF
The Vanguard Morningstar Growth ETF tracks the CRSP U.S. Large Cap Growth Index, which focuses on large companies growing at faster-than-average rates. Its great performance should be no surprise, then. Keep in mind that whenever the market corrects or crashes, such growth stocks tend to fall especially hard. Of course, eventually both the market and many fallen stocks recover and reach new highs.
The ETF's recent top holdings include Nvidia, Apple, and Microsoft, together making up 36% of the fund's value -- and the top 10 holdings account for 64% of the ETF.
If you invest in this fund, most of your money will go to just the top 10 holdings. That's bad if you want more diversification -- but it's good if you want to own a bunch of fast-growing companies.
If you're seeking growth in a somewhat diversified manner, give this ETF a closer look.
Should you buy stock in Vanguard Morningstar Growth ETF right now?
Before you buy stock in Vanguard Morningstar Growth ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Morningstar Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $406,141!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,347,745!*
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*Stock Advisor returns as of September 19, 2026.
Selena Maranjian has positions in Apple, Microsoft, Nvidia, and Vanguard Morningstar Growth ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Vanguard Morningstar Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
If You Invest $2,500 in the Vanguard Morningstar Growth ETF (VUG) Right Now and Hold for 20 Years, Here's How Much Wealth History Suggests You Could Generate was originally published by The Motley Fool
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