5 Best Vanguard ETFs for Portfolio Diversification

3. Vanguard Growth Index Fund ETF (NYSE:VUG)

Number of Hedge Fund Holders: 12

While growth stocks brought pain for investors in 2022, analysts are hopeful that an expected market rebound in 2023 is going to benefit growth stocks with solid fundamentals. Vanguard Growth Index Fund ETF (NYSE:VUG) is one of the best ETFs to buy for portfolio diversification. Tesla is among the most notable holdings of the Vanguard Growth Index ETF (NYSE:VUG). The Vanguard Growth Index ETF (NYSE:VUG) has a $4.3 billion stake in Vanguard Growth Index Fund ETF.

Tesla Inc. (NASDAQ:TSLA) continues to remain on the radar of famous growth investors despite losses. On January 10, it was reported that Cathie Wood’s bought another 100,982 shares of Tesla Inc. These shares have a total value of a whopping $12 million. As of the end of the third quarter, Cathie Wood’s fund had a $1.1 billion stake in the company.

Overall, hedge funds are bullish on Tesla Inc. (NASDAQ:TSLA). At the end of the September quarter, 88 funds reported having stakes in the EV company, compared to 73 funds in the previous quarter.