Better Buy: Vanguard Growth Index Fund vs. USAA Nasdaq-100 Index Fund
Index mutual funds have been steadily growing in popularity over the years, as investors favor the low-cost and good returns that these passively managed mutual funds have produced. Last year, according to Morningstar, passive funds surpassed active funds in assets and continue to see strong inflows.
With the growth of passive assets, there has been an explosion of index funds and exchange-traded funds (ETFs) on the market that track all the major indexes and various segments within each of them.
When comparing index funds that track the same index, there's not going to be a huge difference in performance, but there is more deviation between index funds that track different indexes. Within the large-cap growth segment, which has consistently beaten the major broad benchmarks over the long term, there are two leading funds that track different indexes -- the Vanguard Growth Index Fund (NASDAQMUTFUND: VIGAX) and the USAA Nasdaq-100 Index Fund (NASDAQMUTFUND: USNQX).
Source Fool.com
