Morningstar Rating

Fund Research and Analysis

by Jonathan Rahbar
Low costs and solid diversification make Vanguard Growth Index a compelling option.

Don't expect this offering to blow past other growth funds in a given year. Do expect to get broad diversification to growth stocks, like Apple AAPL and Google GOOG, along with a healthy slug of core names, such as Microsoft MSFT or IBM IBM, for a price tag that's among the lowest in the large-growth category.  Read more 

Kudos

Low costs.
Great tax efficiency.
Wide diversification limits volatility. Read more 

Risks

Fund is likely to trail when value stocks shine.
Fund may not get as big a boost when small- or mid-cap growth stocks lead the way. Read more 

Strategy

Since 2003, this fund has tracked the MSCI U.S. Prime Market Growth Index. This index represents growth stocks contained in the MSCI U.S. Prime Market 750 Index (which contains the 750 largest companies by free-float market capitalization in the United States).  Read more 

Management

Gerard O'Reilly has been in control of this fund since 2005, but has been with Vanguard since 1992. He also manages Vanguard REIT Index VGSIX and Vanguard Total Stock Market Index VTSMX.  Read more 

Inside Scoop

The fund boasts numerous virtues, including low costs, broad diversification, and tax efficiency. It adopted a new benchmark in 2003 that uses sophisticated methods to better reflect the large-growth universe.  Read more 

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