The S&P 500 is a key index used to measure stock market performance, with the Vanguard Growth ETF consistently outperforming it. The Vanguard fund focuses on growth stocks, with 151 companies and a tech-heavy portfolio. The “Magnificent Seven” stocks make up 58% of the fund, with concerns of overvaluation but potential for a strong 2026.

The Vanguard Growth fund has outperformed the S&P 500 over the past decade, gaining 390% compared to 265%. The fund’s success depends on the performance of key stocks like Nvidia and Alphabet. With tech tailwinds and increased AI spending, the fund is positioned for continued outperformance.

Investors considering the Vanguard Growth ETF should note its history of outperforming the S&P 500 in 15 of 22 years. Factors like AI growth, cloud computing, and interest rate cuts could contribute to its success. While the ETF may face challenges if investors favor value stocks, its strong position in growth sectors bodes well for future performance.

Read more at Nasdaq: If I Had to Bet on 1 Vanguard ETF Outperforming the Market in 2026, This Would Be It