You Think VUG Owns the Fastest-Growing Companies. That's Not Quite How It Works.

Key Points The Vanguard Growth ETF uses six different fundamental metrics in its stock selection process. This fund mixes historical and forward-looking measures to pick stocks. Basing stock selection on trying to predict the future can produce unintended results. 10 stocks we like better than Vanguard Morningstar Growth ETF › Investors buying shares of the Vanguard Growth ETF (NYSEMKT: VUG) probably think that they're buying the fastest-growing companies in the United States. For the most part, that's true. The fund's selection criteria target companies using six separate growth-related metrics. The companies demonstrating the best composite of these factors make the final portfolio of growth stocks . Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger.