VUG: Fear Of Missing Out Could Drive Growth Funds Even Higher

About: Vanguard Growth ETF (VUG)
by: Dividend Seeker
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Dividend Seeker
ETF investing, dividend investing, long-term horizon, value

Growth stocks (and funds) have led the market over the past decade. With 2020 underway, it is reasonable to think this could continue.

The spread between growth and value right now is very wide, but that has been the story for the past few years.

Earnings growth per share in large-cap companies was negative last year. With stock prices on the rise, P/E multiples keep increasing. This suggests some level of caution is warranted.

The Technology sector is the largest sector by weighting in VUG, and it remains an area I am bullish on this year.

Main Thesis

The purpose of this article is to evaluate the Vanguard Growth ETF (VUG) as an investment option at its current market price. With a new decade in front of us, investors