VUG ETF

The year 2024 is shaping up to be another great year for the stock market, with the S&P 500 expected to achieve returns of over 20%. So far, the benchmark index has delivered total returns, including dividends, of almost 25%.

Over the past two years, stocks have been rising significantly since the start of the latest bull market, making it a great time to consider new investments.

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.

The Vanguard Growth ETF is an excellent choice for long-term investors because it focuses on companies with strong growth potential. This ETF offers diversification, which helps reduce risk while aiming for higher returns over time. Additionally, its low fees make it a cost-effective investment option.

I have a hold rating on VUG because of its valuation and the slowing growth of earnings per share (EPS) among large tech companies. Although it has a strong long-term EPS growth rate of 17.5%, its PEG ratio of 1.8x is relatively high, which makes it less appealing. VUG's portfolio is mainly focused on technology, with Apple, Microsoft, and NVIDIA making up more than a third, but it doesn't include Financials and Industrials, which have performed well this year.

Putting money into the stock market every month is a smart practice. The Vanguard Growth ETF is a great option for monthly investments.