Vanguard S&P 500 Growth Index Fund ETF Shares VOOG

Vanguard S&P 500 Growth ETF holds a quantitatively derived Gold Morningstar Medalist Rating. The rating reflects that it has scored particularly well on factors Morningstar research associates with future outperformance relative to category peers.

People: Above Average

Note: This share class' People Pillar rating and analysis are inherited from an analyst-covered share class under the same Strategy Provider Company (rolled up to Branding Name) and Morningstar Category Broad Group: Vanguard FTSE All-Wld ex-US SmCp ETF (SecID: FOUSA08NFZ).

Process: Above Average

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered passive share class, which tracks the same index: State Street SPDR Port S&P 500 Gr ETF (SecID: FEUSA0002B).

Performance (in US Dollar)

Over the past 12 months, Vanguard S&P 500 Growth ETF share class returned 37.6%, outperforming both its category index, the Russell 1000 Growth TR USD Index (30.6%), and its Morningstar category peers (28.1%). Over 10 years, the fund returned 17.6% per year, underperforming the index (18.3% per year) and ahead of its Morningstar Category average (15.2% per year).

Price

Vanguard S&P 500 Growth ETF's Prospectus Adjusted Expense Ratio is 0.07% per year. It places it in the cheapest quintile of the Morningstar US Fund Large Growth Category, where the median fee is 0.82% per year. This cost positioning translates into a Medalist Rating Price Score of 2.42, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.

The fund tracks the S&P 500 Growth Index, which is derived from the broader S&P 500. This parent index encompasses the largest 500 stocks in the US market that pass its liquidity and profitability screens, weighting each by market capitalization. It ranks stocks based on value-growth scores that consider metrics like price multiples, sales growth, earnings growth, and 12-month price change. The index assigns the fastest- and slowest-growing third by market-cap to the growth and value indexes, respectively. It allocates a portion of each stock in the middle third to both indexes based on their scores. The index is reconstituted annually and uses buffer rules to minimize turnover.

Market-cap weighting is a reasonable approach for the large-growth Morningstar Category because large-cap stocks usually reflect new information quickly, making it hard for active managers to gain an edge. Market-cap weighting also generates lower trading costs. Index funds in this category are susceptible to growth traps—stocks with high valuations owing to optimistic growth estimates that aren't realized. Market-cap weighting can give those stocks more weight than they deserve. Overall, though, the market has priced stocks reasonably well in the long run.

Large allocations to the biggest names in the US stock market present some concentration risk, but the index simply represents the large-growth segment of the market. While higher concentration may be a concern for investors, there isn't a clear relationship between index performance and market concentration. In addition, the largest companies, such as Apple and Microsoft, often have diversified business lines, so they don't rely on a single product, service, or market to determine their success.

The portfolio fits the mold of the opportunity set. Its growth characteristics, such as valuations, revenue growth, and historical earnings growth, match peers', on average. The index's average market cap can differ from the average large-growth fund at times, but it has stayed close over the long term. Sector allocations broadly align with the category, though deviations of 5 percentage points or more in individual sectors, namely technology, have temporarily occurred.

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered passive share class which tracks the same index: State Street SPDR Port S&P 500 Gr ETF (SecID: FEUSA0002B).

Vanguard's equity index group earns an Above Average People Pillar rating for its well-supported and stable management team that's adept at leveraging Vanguard's comprehensive resources. Its portfolio managers benefit from the firm's global infrastructure and advanced portfolio management technology, which facilitates cost-efficient trading around the globe. The infrequent turnover of managers, coupled with Vanguard's practice of rotating them across various funds, enhances their expertise and understanding of different market segments.

The fund's managers directly handle trading, providing them with deeper insights into the portfolio's operations than a stand-alone trader might have. They are backed by a global team of dedicated personnel and employ sophisticated, scalable technology to minimize their workload and enhance tracking accuracy. Vanguard's independent risk management team plays a crucial role in ensuring its funds adhere to predetermined tracking tolerances. It collaborates closely with the managers to oversee trades and address potential issues proactively. Vanguard compensates managers based on tracking error and excess return metrics to foster a culture of accountability and ensure that the management team's interests are closely tied to investors'.

Note: This share class' People Pillar rating and analysis are inherited from an analyst-covered share class under the same Strategy Provider Company (rolled up to Branding Name) and Morningstar Category Broad Group: Vanguard FTSE All-Wld ex-US SmCp ETF (SecID: FOUSA08NFZ).

Vanguard maintains its High Parent Pillar rating as it continues to grow under new leadership.

CEO Salim Ramji has had a busy first year captaining Vanguard’s crew, and the ship remains pointed in the right direction. The firm made its largest round of fee cuts in early 2025, which came at an estimated cost of USD 350 million. It established a separate division dedicated to its advice and wealth management efforts, a sign that it wants to seriously compete within those lines of business. Asset growth has continued to be a huge success. Only BlackRock’s inflows rival the money Vanguard is taking in. Likewise, the number of clients it serves has more than doubled since 2015.

Despite that success, an ever-growing number of clients has presented a challenge: Vanguard can’t grow its services fast enough to keep up with demand. In some instances, it has had to curb certain services and capabilities or raise fees on others to cope, causing some loyal clients to criticize what they perceive as deteriorating services.

Vanguard has ambitions to bring its disruptive legacy to the bond market. It created roughly a dozen low-cost bond exchange-traded funds for US investors and several others abroad over the 12 months through June 2025. All have low fees in their respective categories, and the actively managed strategies align with Vanguard’s philosophy. They are relatively easy to understand and are conservatively managed.

Vanguard has another opportunity to prove that clients are still its priority. On the surface, its endeavor into the high-fee deal-making world of private assets alongside Wellington and Blackstone looks like a cultural mismatch. So far, the collaboration hasn’t produced anything that’s concerning.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Vanguard (Branding Name ID: BN00000AAL), is covered by Morningstar Manager Research.

Performance is evaluated in US Dollar, measured to the end of April 2026.

Short-Term Performance

Over the past 12 months, Vanguard S&P 500 Growth ETF share class returned 37.6%, outperforming its category index, the Russell 1000 Growth TR USD Index (30.6%), and its Morningstar category peers (28.1%). Over the three-year period, it returned 26.9% per year, outperforming both the index (25.4% per year) and its Morningstar category peers (22.7% per year).

Long-Term Performance

Over five years, the fund returned 14.1% per year, ahead of the index (13.8% per year) and ahead of peers (10% per year). Over 10 years, the fund returned 17.6% per year, below the index (18.3% per year) but ahead of its Morningstar Category average (15.2% per year).

Vanguard S&P 500 Growth ETF's Prospectus Adjusted Expense Ratio is 0.07% per year. It places it in the cheapest quintile of the Morningstar US Fund Large Growth Category, where the median fee is 0.82% per year. This cost positioning translates into a Medalist Rating Price Score of 2.42, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.