Prediction: This Growth ETF Will Beat the Market Over the Next 5 Years
One popular investing strategy is "buying the market." The way to do that is to invest in the gamut of stocks on the market, since it's very hard to beat the market. Instead of trying, it makes sense to invest in an index fund that mirrors the makeup of a broad market index like the S&P 500 and benefit from passive investing. Even investors who don't subscribe wholly to that theory have some money invested in such a fund, often in the form of an exchange-traded fund (ETF).
But what if you could invest in just the best half or so of the S&P 500? You'd still have healthy diversification, but you'd benefit from exposure to the largest and highest-growth companies in the index. Plus, if it's in the form of an ETF, you'd still get the perks of passive investing.
You can get all this and more if you invest in the Vanguard Growth ETF (NYSEMKT: VUG), and it's likely to beat the market over the next five years and longer. Here's why.
Source Fool.com
