Is the Vanguard S&P 500 Growth ETF Worth Its Premium Valuation?

It is easy to make the mistake of chasing performance on Wall Street. That's why fad investments rise to bubble status, as people who fear they are missing out blindly follow the crowd.Eventually, the fads end, with the last people in the door often shouldering material losses. It is why you need to make sure you understand what you are buying. That is equally true with broad-based exchange-traded funds (ETFs) like the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). Here's why.The starting point for Vanguard S&P 500 Growth ETF is the S&P 500 (SNPINDEX: ^GSPC) index, so that is where the discussion has to start. The S&P contains roughly 500 stocks that have been selected by a committee based on multiple criteria, including because they are representative of the U.S. economy. They are generally large and important companies.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool