Vanguard Announces 6-for-1 Stock Splits for Two Growth ETFs in April

Vanguard Group has announced 6-for-1 stock splits for two of its growth-focused exchange-traded funds (ETFs), the Vanguard Growth ETF (VUG) and the Vanguard S&P 500 Growth ETF (VOOG). The splits, set to occur in April 2026, aim to reduce the per-share price of these funds, making them more accessible to individual investors. Vanguard cited factors such as market price, bid-ask spreads, and trading volume as motivations for the corporate action. The move will bring the share price of both ETFs from over $400 to approximately $70 or lower, enhancing affordability for new and existing investors. The Vanguard Growth ETF, with $335.9 billion in net assets, is the firm's flagship growth fund. It has slightly outperformed the S&P 500 Growth ETF over the past decade, though both funds have underperformed the broader S&P 500 index. The Growth ETF holds 151 stocks, with a significant 12.2% allocation to Apple, compared to 6.4% in the S&P 500 Growth ETF. This difference in weighting allows the latter to allocate more to companies like Nvidia, Microsoft, and Alphabet. The S&P 500 Growth ETF also includes exposure to financials such as Berkshire Hathaway and JPMorgan Chase, which are absent from the Growth ETF's portfolio. Both ETFs offer low-cost access to growth stocks, with the Growth ETF carrying an expense ratio of 0.03% versus 0.07% for the S&P 500 Growth ETF. While the cost difference is minimal, the choice between the two funds depends on investors' preferences for stock weightings. The Growth ETF emphasizes Apple, Amazon, and Tesla, while the S&P 500 Growth ETF provides broader exposure to other growth leaders and financials. Vanguard's decision to split these ETFs reflects a commitment to maintaining investor accessibility in its low-cost index fund lineup.