Vanguard Growth Index Admiral Fund: An In-Depth Guide

Overview

The Vanguard Growth Index Admiral Fund (VGIAX) is a passively managed index fund that tracks the performance of the S&P 500 Growth Index. The fund invests primarily in large-cap growth stocks of companies with high growth potential. VGIAX has a long track record of solid performance, with an average annual return of over 10% since its inception in 1992.

Investment Strategy

VGIAX invests in companies that are expected to experience above-average growth in earnings and revenue. The fund's portfolio is weighted towards companies in the technology, healthcare, and consumer discretionary sectors. VGIAX uses a quantitative screening process to identify companies that meet its investment criteria.

Performance

VGIAX has outperformed the S&P 500 Index over the long term. Over the past 10 years, VGIAX has returned an average of 12.5% per year, compared to 9.9% for the S&P 500. VGIAX has also outperformed its peer group of growth index funds.

Fees and Expenses

VGIAX has a low expense ratio of 0.04%, which is below the average for growth index funds. The fund also has no load or sales charges.

Suitability

VGIAX is a suitable investment for investors who are looking for a low-cost, diversified way to invest in growth stocks. The fund is appropriate for investors with a long-term investment horizon and a tolerance for risk.

Alternatives

There are a number of other growth index funds available to investors. Some popular alternatives to VGIAX include:

• Fidelity Growth Company Fund (FGRIX)
• T. Rowe Price Growth Stock Fund (PRGFX)
• Invesco QQQ Trust (QQQ)

Conclusion

The Vanguard Growth Index Admiral Fund is a solid choice for investors who are looking for a low-cost, diversified way to invest in growth stocks. The fund has a long track record of solid performance and is managed by a team of experienced investment professionals.

Additional Information

• Morningstar Rating: 5 stars
• Lipper Rating: 5 stars
• Fund Size: $165 billion
• Inception Date: March 18, 1992

Tables

Table 1: VGIAX Performance

Table 2: VGIAX Top 10 Holdings

Table 3: VGIAX Sector Allocation

Table 4: VGIAX Fees and Expenses

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.