Growth stocks have had a historic run. Over the past 20 years, Growth Index (VIGAX) has returned 1,142%—more than double Value Index's (VVIAX) 496% gain. Over the past five, seven, 10 and 15 years, the story is the same: growth wins, and value isn't even a close second.
That kind of track record tends to attract attention—and assets. So, it's worth asking: which of Vanguard's large-cap growth funds actually deserve a place in your portfolio? Are they all created equal?
The short answers are that you need to be very selective, and no, they’re far from equal. The differences between index-tracking and active options, and between funds with proven managers and funds still finding their footing, are worth understanding.
One caveat before we dive in: Markets are cyclical, and growth stocks' run of dominance will end. I recently shared my full take on the growth-versus-value debate here. The bottom line is that most investors are better served by owning both.
But if you hold growth funds—or are considering them—here's how Vanguard's options stack up.