These funds are part of many investors' portfolios and helped put Vanguard on the map. Yet Vanguard has no fewer than nine growth funds. Most growth investors can find a home among these funds, whether in a low-cost index fund tracking growth stocks or an aggressive, actively managed fund. Growth stocks have above-average multiples of earnings, meaning investors have high expectations for these stocks and can react swiftly if a company's performance either exceeds or fails to meet expectations. As a result, growth stocks carry greater risk along with the prospect of greater rewards.
Vanguard hires outside managers for many of our funds, providing diversity of thought.
There are ten investment firms advising Vanguard's growth funds, which gives each fund a different character largely dictated by the people managing the assets. Managers of Vanguard funds maintain a long-term focus. We hire managers who will seek the best way to build capital for our investors over a longer period of time. We want managers who use a consistent approach but can recognize changes in the market over time. We avoid those managers who hype performance in the short term at the expense of what may be a longer-term benefit to investors.