VUG ETF

The S&P 500 (^GSPC 0.56%) is performing exceptionally well this year, showing a 27.3% increase so far. This is more than double its average yearly return since 1957.

One impressive growth ETF has the potential to transform a monthly investment of $400 into $1.4 million with minimal effort. This investment opportunity could yield significant returns over time.

This exchange-traded fund focuses mainly on the top-performing stocks in the S&P 500.

Investors looking for momentum might be interested in the Vanguard Growth ETF (VUG). The fund recently reached a 52-week high and has increased by 51.51% from its lowest price of $260.65 per share in the past year.

Why the Vanguard Growth ETF is a great option for long-term investors.

I have a hold rating on VUG due to its valuation and slowing EPS growth among mega-cap tech stocks. Despite a high 17.5% long-term EPS growth rate, VUG's PEG ratio of 1.8x is a bit elevated, making it less attractive. VUG's portfolio is tech-heavy, with Apple, Microsoft, and NVIDIA comprising over one-third, but it lacks exposure to Financials and Industrials - some of this year's winners.

Investing money into the stock market each month is a good habit to get into. The Vanguard Growth ETF can be an excellent place to invest every month.

It's not easy to beat the market, but if you invest in the right instruments, it can be done. This ETF offers broad diversification with exposure to established growth stocks.

The Vanguard Growth ETF has outperformed the S&P 500 over the past decade. Its top holdings are very similar to those in the S&P 500, but they tend to have a higher weighting.