Prediction: This Unstoppable Vanguard ETF Will Crush the S&P 500 in the Remainder of 2026
Written by Anthony Di Pizio for The Motley Fool -> The S&P 500 Growth index usually outperforms the regular S&P 500 because of more exposure to tech. The Vanguard S&P 500 Growth ETF mimics the perfโฆ
The S&P 500 Growth index usually outperforms the regular S&P 500 because of more exposure to tech.
The Vanguard S&P 500 Growth ETF mimics the performance of the Growth index by holding the same stocks.
The ETF beat the S&P 500 in the first half of 2026, and it could extend its advantage in the remainder of the year.
Had you invested in an S&P 500 (SNPINDEX: ^GSPC) index fund at the beginning of 2026, you would have had a 9.5% gain during the first half of the year. But had you parked your money in the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) instead, you would have gained 11.5% during the same period.
The S&P 500 is made up of 500 companies from 11 different industry sectors, so it's highly diversified. The Vanguard S&P 500 Growth ETF is an exchange-traded fund (ETF) that mimics the S&P 500 Growth index, which holds only 148 of the best-performing growth stocks from the regular S&P 500, while disregarding the other 352 stocks.
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As a result, the ETF tends to outperform the S&P 500 on a consistent basis, and here's why I predict that trend will continue as 2026 draws to a close.
The S&P 500 Growth index chooses stocks based on factors such as their momentum, and the sales growth of the underlying companies. The Vanguard ETF has 52% of its assets parked in the information technology sector right now, because its constituents have momentum and sales growth in spades thanks to the artificial intelligence (AI) boom. By comparison, the S&P 500 has just 38% of its assets parked in tech.
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