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This Top Vanguard Fund Doubled in 5 Years—Your Forever Investment Just Got Better

This Top Vanguard Fund Doubled in 5 Years—Your Forever Investment Just Got Better

Author:
foolstock
Published:
2025-08-23 20:19:00
17
1

Vanguard's flagship fund just delivered a knockout performance—doubling investor money in half a decade while traditional markets stumbled.

Why This Fund Defies Market Cycles

While Wall Street fund managers were busy collecting fees for mediocre returns, this Vanguard powerhouse quietly compounded gains through disciplined indexing and razor-thin expense ratios. It's the investment equivalent of watching paint dry—except the paint doubles in value every five years.

The Forever Asset You Actually Want to Hold

No rebalancing headaches, no emotional trading decisions—just relentless exposure to broad market growth that makes active fund managers squirm. It's the anti-Wall Street play: boring, predictable, and devastatingly effective where it counts—your portfolio balance.

In a world where financial advisors invent complexity to justify their existence, sometimes the simplest solution—just buying everything and waiting—beats them all at their own game.

A couple using a laptop and reviewing documents.

Image source: Getty Images.

This ETF's focus on growth stocks has enabled it to post terrific returns

In just five years, the Vanguard Russell 1000 Growth Index Fund has risen by around 110%. And when you include its dividend, then its total returns are up to about 118%. By comparison, over the same time frame, the broaderindex has generated total returns of about 106%.

The Vanguard fund focuses on top U.S. growth stocks, and about 60% of its holdings are in tech. Its five largest holdings are,,,, and. Together, they account for 46% of the ETF's total portfolio.

Although there are 390 stocks in the fund, these heavy hitters play a big role in determining the fund's overall performance. And with many of them doing well in recent years, it's no surprise that the ETF has delivered such strong returns for investors.

A diversified option to hang on to for the long haul

While the Vanguard fund is heavily tilted toward tech stocks, it does still offer good diversification, providing investors with exposure to other sectors as well, including consumer discretionary, industrials, and healthcare. They each make up more than 5% of the ETF's overall portfolio.

There will likely be volatility with the fund because of its focus on growth stocks, and there will inevitably be bad years for the ETF when the economy isn't doing well. But when investing for the long term, the overall market should rise in value. On average, the S&P 500 has risen by 10% per year, for decades.

And growth stocks can potentially deliver better-than-average returns. This is where having a disciplined approach and remaining invested for the long term can be a key part of growing your wealth.

Low costs make the fund an ideal place to invest in on a regular basis

A key aspect of the fund that will be attractive for long-term investors is its low expense ratio of just 0.07%. Over time, fees can add up and chip away at your gains, which is why focusing on a fund with low costs can ensure that your returns are as high as possible.

Whether you're investing a lump sum or planning to invest regularly into the stock market, putting your money into this Vanguard ETF can be a great way to grow your portfolio's balance in the long run.

With low fees, good diversification, and a focus on top growth stocks, the Vanguard Russell 1000 Growth ETF can be a terrific pillar to build your portfolio with. It has more than doubled in the past five years, and there can be plenty more gains ahead for long-term investors.

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