A Beginner's Guide: Investing In Vanguard Growth And Income Fund

The Vanguard Growth and Income Fund is a mutual fund that aims to outperform the S&P 500. The fund's managers invest primarily in large-cap stocks in the US market, focusing on those with faster growth or undervalued by the market. As of November 2023, the fund had $11.65 billion in assets invested in 859 different holdings, including well-known companies such as Apple, Microsoft, and Exxon Mobil. With a low expense ratio of 0.32-0.34% and a minimum investment requirement of $3,000, it offers investors a way to gain exposure to the overall market and specific market sectors. The fund has consistently generated positive returns over the years, making it an appealing option for long-term investors seeking a buy-and-hold strategy.

The fund's goal is to outperform the S&P 500

The Vanguard Growth and Income Fund is an investment fund that aims to outperform the S&P 500. The fund's managers take a quantitative investment approach, investing primarily in large-cap stocks in the largest segment of the US stock market based on market cap. This includes well-known companies such as Apple Inc., Microsoft Corp., and Exxon Mobil Corp. The fund's strategy is to target stocks that are growing faster than average, as well as those that may be undervalued by the market. This approach has resulted in risk and sector profiles similar to its benchmark index, the S&P 500.

The fund has a total return goal, meaning it seeks both capital appreciation and dividend income. It aims to provide investors with a balanced portfolio of growth and income-generating stocks. As of November 27, 2023, the fund had assets totaling $11.65 billion invested in 859 different holdings. The fund's performance has been strong, with returns of 8.66% over the past year and 10.66% over the past three years.

The fund's expense ratio is relatively low at 0.34%, and it requires a minimum investment of $3,000. Vanguard also offers a lower-cost Admiral share version with a $50,000 minimum investment. The fund's risk is considered below average when compared to other funds in the large-blend peer group, according to Morningstar. However, like any actively managed fund, its performance is subject to the skill of the managers and their stock-picking techniques.

Overall, the Vanguard Growth and Income Fund provides investors with a diversified portfolio of large-cap stocks, offering the potential for both capital growth and dividend income. With its strong performance and low fees, the fund offers a competitive option for investors seeking to outperform the S&P 500.

The fund's risk and sector profiles

The Vanguard Growth and Income Fund is a core large-cap holding in a portfolio. The fund's managers look across the spectrum of large-cap stocks, investing primarily in the largest segment of the U.S. stock market based on market cap. The fund's largest holdings include well-known companies such as Apple Inc., Microsoft Corp., Exxon Mobil Corp., General Electric Co., and Johnson & Johnson.

The fund falls into Morningstar's large-blend category, meaning it focuses on stocks that are growing faster than average, as well as stocks that may be undervalued by the market. As of November 27, 2023, the fund had assets totaling $11.65 billion invested in 859 different holdings. The fund's expense ratio is 0.32%, with a $3,000 minimum investment requirement. Vanguard also offers a lower-cost Admiral share version with a $50,000 minimum investment.

According to the fund's website, the Vanguard Growth and Income Fund aims to outperform the S&P 500. The fund's quantitative investment approach results in risk and sector profiles similar to its benchmark index, with a total return goal, seeking both capital appreciation and dividend income.

The key risk for the fund is the volatility associated with its full exposure to the stock market. Equities can lose value due to various factors, and this fund is subject to these risks. Additionally, any actively managed fund is dependent on the skill of the managers and their stock-picking techniques.

The fund's total return goal

The Vanguard Growth and Income Fund has a total return goal, meaning it seeks both capital appreciation and dividend income. The fund's goal, as stated on its website, is to outperform the S&P 500. It aims to achieve this through a quantitative investment approach that results in risk and sector profiles similar to its benchmark index.

The fund's managers look across the spectrum of large-cap stocks, investing primarily in the largest segment of the U.S. stock market based on market cap. This includes stocks that are growing faster than normal, as well as stocks that might be undervalued by the market. As of November 27, 2023, the fund had assets totaling almost $11.65 billion invested in 859 different holdings.

The fund's largest holdings include well-known companies such as Apple Inc., Microsoft Corp., Exxon Mobil Corp., General Electric Co., and Johnson & Johnson. The fund's performance has been strong, with returns of 8.66% over the past year, 10.66% over three years, 10.67% over five years, and 11.03% over the past decade.

The fund's expense ratio is relatively low at 0.32% to 0.34%, and it requires a minimum investment of $3,000. However, Vanguard also offers a lower-cost Admiral share version with a $50,000 minimum investment. The fund's risk is considered below average when compared to other funds in the large-blend peer group, and the level of return is deemed high for the trailing three- and five-year periods.

The fund's largest holdings

As of December 2016, the makeup of the Vanguard Growth and Income Fund in terms of holdings by market capitalization and sectors was mostly in line with the Standard & Poor's 500 index. As of 27 November 2023, the fund had almost $11.65 billion in assets invested in 859 different holdings.

The Vanguard Growth and Income Fund falls under Morningstar's large-blend category, indicating that the fund managers primarily invest in the largest segment of the U.S. stock market based on market cap. This fund focuses on stocks that are growing faster than average and those that may be undervalued by the market.

The fund's performance

The Vanguard Growth and Income Fund has a total return goal, meaning it seeks both capital appreciation and dividend income. The fund's managers look across the spectrum of large-cap stocks, investing primarily in the largest segment of the U.S. stock market based on market cap. The fund's largest holdings include well-known companies such as Apple Inc., Microsoft Corp., Exxon Mobil Corp., General Electric Co., and Johnson & Johnson.

As of November 27, 2023, the fund held assets totalling almost $11.65 billion invested in 859 different holdings. The fund has returned 8.66% over the past year, 10.66% over the past three years, 10.67% over the past five years, and 11.03% over the past decade. The fund's performance relative to its peers in the large-blend category is as follows: 47th percentile for the trailing 12 months, fifth percentile for the trailing three years, eighth percentile for the trailing five years, and back to the 47th percentile for the trailing 10 years, as of early March 2017.

The fund's expense ratio is a low 0.34%, and it requires a minimum investment of $3,000. A lower-cost Admiral share version is available, requiring a $50,000 minimum investment. The fund's risk compared to other large-blend funds is considered below average for the trailing three- and five-year periods and average for the trailing 10 years.

The level of return is deemed high for the trailing three and five years and average for the trailing 10 years when compared to its peers. The fund's volatility is in line with its full exposure to the stock market, and it is subject to the skill of the managers and their stock-picking techniques.

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