It's a pure growth fund. Growth has underperformed value stocks for nearly 7 years now. Value and dividends became important after the start of the big meltdown in 2000. Since then, growth has lagged significantly. Look at all pure growth funds, and they're all behind the S&P500.

The problem I have with this fund is that it lagged the growth index significantly over the past year. It's highly concentrated, one of Vanguard's most expensive funds (ER = 0.9%), and tends to make big bets. If the bets don't pay off, it hurts. I think it may finally be starting to stir this year if growth comes back in favor. But it holds GE and GE was way up today, yet this fund was down while the growth index was unchanged. Not something that inspires me. Right now, if you want growth, I'd bet on the growth index. But Morningstar still likes this fund, so we'll see.