Vanguard S&P 500 Growth ETF Reaches $1.5 Trillion in Assets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
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Should l Buy MSFT?
Source: Fool
- Asset Milestone: The Vanguard S&P 500 Growth ETF has reached $1.5 trillion in assets, making it the largest ETF globally, significantly surpassing most individual stocks and reflecting strong market appeal and investor confidence.
- Quality Holdings: This ETF includes over 200 top growth stocks, with Nvidia, Alphabet, Apple, and Microsoft comprising 38% of its weight, ensuring portfolio diversification and stability, thereby mitigating investment risks.
- Cost Efficiency: With an expense ratio of just 0.07%, or $7 annually for every $10,000 invested, the Vanguard S&P 500 Growth ETF offers exceptional cost-effectiveness, allowing long-term investors to maximize returns.
- Sustained Growth Potential: The ETF automatically replaces stocks that no longer meet growth criteria, ensuring ongoing growth potential, with an annualized return exceeding 22% over the past decade, significantly outperforming the benchmark index's 14.8%, demonstrating its robust market performance.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Potential Outlook: Should Microsoft achieve another 160% growth in users over the next year, it could generate an additional $8.6 billion in revenue, which represents nearly 3% of its projected $328 billion revenue for fiscal year 2026, highlighting Copilot's commercial value.
- Strategic Positioning and Competitive Advantage: With significant equity stakes in both OpenAI and Anthropic, Microsoft can leverage AI to enhance Microsoft 365's competitiveness, thereby maintaining its leadership in the office software market and mitigating competitive pressures in the future.
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- Stock Valuation Decline: Microsoft's price-to-earnings (P/E) ratio has fallen to 25, nearing its lowest level in three years, reflecting market caution regarding its growth prospects, despite analysts' price target of $596 suggesting a 48% upside.
- Investor Sentiment Weakens: Following the earnings report on January 28, Microsoft's stock has dropped 16%, leading to investor doubts about the returns from its AI infrastructure investments, although the low valuation may present a buying opportunity in the long run.
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- Earnings Momentum Weakening: During the fourth-quarter earnings season, the combined EBIT four-quarter moving average of the Magnificent Seven fell to its lowest level since 2023, and despite a rebound at Apple, the overall fading earnings growth momentum raises concerns about profit-taking risks for investors.
- Capex Correlation Breakdown: Woo noted that for the first time since the launch of ChatGPT, the strong correlation between AI stocks and hyperscaler capital expenditures has turned negative, suggesting a loss of market trust in capex as a signal for higher returns, which could lead to over-investment risks.
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- AI Investment Outlook: With significant growth expected in AI capital expenditures for 2026, Nvidia's stock price remains flat compared to six months ago, and its forward P/E ratio has dropped to the lowest level since 2015, suggesting a cautious market sentiment regarding the future potential of the AI sector, which may impact investor confidence.
- Consumer Stock Performance: The relative weakness in consumer-exposed stocks contrasts sharply with the performance of traditionally defensive staples, leading to divergent interpretations in the market, which may reflect changes in cyclical demand or deeper economic concerns.
- Corporate Earnings Trends: The S&P 500 is projected to achieve low to mid-teens profit growth in the fourth quarter, surpassing consensus forecasts, yet the continuous outperformance of earnings results may lead to future adjustment risks as the market assumes such margins of victory.
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AI Impact Summit in New Delhi: Top tech executives will convene in New Delhi, India, for an AI Impact Summit starting Monday.
Previous Summits: This event follows government-led summits on artificial intelligence that have taken place in the U.K., South Korea, and France.
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