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My Favorite ETF

Generally speaking, I am an individual stock guy because I enjoy spending time learning about and researching different companies. Clearly, this website is evidence of such interest.


However, I am not against the principles of investing in ETFs. ETFs offer one the ability to invest in a diversified portfolio with limited cost. Also, over the last few year, ETFs have massively outperformed a wide array of for-cost money mangers.


Therefore, one may ask, "What is your favorite ETF...?"


For me, it is VUG, which is also known as the Vanguard Growth ETF. I am more inclined to growth investing, so the basic core of the VUG ETF is made up of large cap growth stocks I tend to favor on an individual stock basis. Also, the VUG ETF has an expense ratio of 0.04% per year, which is quite low. As with all Vanguard ETF, the expense ratio is lowest in the industy.


The top 10 holdings of the VUG include:

Since the ETF's inception in 2004, the fund has returned an annual return of 10.5%. Also, $10K invested in the VUG in 2010 would be worth nearly $50K today.


And as always, I don't recommend something without having some skin in the game. Currently, VUG represents 32.92% of my Roth IRA holdings.




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