Prediction: This Spectacular Vanguard ETF Will Beat the S&P 500 (Again) in 2026

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  • The S&P 500 scale gained 17% during 2025, but the S&P 500 Growth scale soared by 21%.

  • The S&P 500 Growth scale invests successful 216 of the best-performing maturation stocks from the regular S&P 500 and disregards the rest.

  • The Vanguard S&P 500 Growth ETF gives investors a elemental mode to ain a portion of the maturation index, and it could bushed the marketplace again successful 2026.

  • 10 stocks we similar amended than Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF ›

The S&P 500 (SNPINDEX: ^GSPC) is simply a banal marketplace scale made up of 500 companies from 11 antithetic sectors of the economy. It climbed 17% successful 2025, which was comfortably supra its semipermanent mean yearly instrumentality of 10.6% dating backmost to erstwhile it was established successful 1957.

But past determination is the S&P 500 Growth index, which exclusively holds 216 of the best-performing maturation stocks from the regular S&P 500 and disregards the remainder that mightiness not execute arsenic well. This unsocial portfolio creation propelled the scale to a 21% instrumentality past year.

The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) is an exchange-traded money (ETF) that tracks the show of the Growth index, and it has beaten the S&P 500 each twelvemonth since its inception. Here's wherefore I foretell it volition outperform again successful 2026.

A sculpture of a aureate  bull lasting  connected  a laptop computer.

Image source: Getty Images.

The S&P 500 Growth scale selects stocks from the regular S&P 500 based connected factors similar their momentum and the income maturation of the underlying companies. Technology and technology-adjacent companies typically present faster maturation and amended returns than different companies, which is wherefore the pursuing sectors person higher weightings successful the Vanguard S&P 500 Growth ETF than successful the S&P 500:

Sector

Vanguard ETF Weighting

S&P 500 Weighting

Information technology

41.4%

34.6%

Communication services

16.8%

10.7%

Consumer discretionary

11.9%

10.3%

Data source: Vanguard. Sector weightings are close arsenic of Nov. 30, 2025, and are taxable to change. ETF = exchange-traded fund.

The accusation exertion assemblage is location to 3 of the world's largest companies: Nvidia, Apple, and Microsoft, which person consistently operated astatine the forefront of tech revolutions similar unreality computing, idiosyncratic computing, software, and, now, artificial quality (AI).

Led by the unthinkable maturation of those 3 companies, the accusation exertion assemblage has delivered a whopping 332% instrumentality implicit the past decade. In fact, if we exclude the assemblage from the S&P 500, the index's 10-year instrumentality drops from 140% to conscionable 92%, which genuinely highlights its significance.

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