If I Had to Bet on 1 Vanguard ETF Outperforming the Market in 2026, This Would Be It

• The Vanguard Growth ETF has outperformed the S&P 500 successful 15 of its 22 years.

• The "Magnificent Seven" stocks relationship for adjacent to 58% of the fund.

• Growth successful unreality computing, integer advertising, and artificial quality (AI) infrastructure buildouts could substance much gains for the ETF.

• 10 stocks we similar amended than Vanguard Index Funds - Vanguard Growth ETF ›

The S&P 500 (SNPINDEX: ^GSPC) tracks abiout 500 of the largest U.S. nationalist companies, and is wide considered the astir important scale successful the banal market. That's wherefore its show is often utilized to gauge if a banal oregon exchange-traded money (ETF) had a bully year.

We can't foretell however a banal oregon ETF volition perform, but there's 1 Vanguard ETF that has consistently outperformed the S&P 500 that's poised to support it going: the Vanguard Growth ETF (NYSEMKT: VUG). In 2025, the money roseate 18.9%, outperforming the S&P 500's 16.4% gain.

The Vanguard money mirrors the CRSP US Large Cap Growth Index, which tracks the companies that relationship for 85% of the U.S. banal market's worth and selects those with faster-growing income and profits than their manufacture average. It presently holds 151 companies.

Since the ETF is weighted by marketplace cap, larger companies marque up a greater stock than smaller ones. This has made the money tech-heavy (65.8% of the ETF), but those person been the best-performing maturation stocks connected the marketplace during the past decade.

In that time, the Vanguard Growth money has gained 390%, compared to the S&P 500's 265%.

The "Magnificent Seven" stocks relationship for adjacent to 58% of the fund, truthful whether it outperforms depends heavy connected however they execute arsenic a group. Below is simply a database of their weighting successful the fund:

• Nvidia: 12.7% 

• Apple: 11.9%

• Microsoft: 10.6%

• Alphabet (Class A): 5.4%

• Amazon: 4.6%

• Alphabet (Class C): 4.3%

• Meta Platforms (Class A): 4.3%

• Tesla: 3.8%

There's existent interest that Magnificent Seven stocks are overvalued, and the hazard of a correction is high. However, determination are tech tailwinds happening that could thrust them to a amended 2026. In 2025, lone Nvidia and Alphabet outperformed the S&P 500, rising 39% and 65%, respectively.

If investors statesman seeing gross maturation and tangible returns from accrued artificial quality (AI) spending, the Magnificent Seven is successful bully shape. If investors get impatient (which they thin to do), we could spot them struggle.

The Vanguard Growth money has outperformed the S&P 500 successful 15 of its 22 years connected the market. That doesn't mean it volition this year, but successful the 7 years it underperformed, determination was 1 communal theme: Investors preferred worth stocks to riskier maturation stocks.