This ETF Could Help Grow Your Retirement Account
Saving in an IRA or 401(k) is only half the job of securing a comfortable retirement. The other half is choosing investments that give you a fighting chance at growing your nest egg over time. That's not an easy thing, given that assets with higher growth potential also come with higher risk. But if you're still decades away from retirement, the Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) might balance risk and reward in just the right way.
This exchange-traded fund is designed to mimic the performance of the Russell 1000 Growth Index, which includes select growth-oriented companies from the Russell 1000. The Russell 1000 tracks 1,000 of the largest publicly-traded companies in the U.S., while the smaller growth index tracks about half as many positions, chosen for their higher price-to-book ratios and higher projected and historical growth rates. Comparing returns, the 10-year average annual return of the Russell 1000 Growth Index exceeds 17%, while the same measure for the complete Russell 1000 is closer to 14%.
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Source Fool.com
