Forecast: This Outstanding Vanguard ETF Set to Outperform the S&P 500 Once More in 2026

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Key Points

The S&P 500 index gained 17% in 2025, while the S&P 500 Growth index outperformed with a 21% increase. The Growth index focuses on 216 of the best-performing growth stocks from the standard S&P 500.

The Vanguard S&P 500 Growth ETF, which tracks the Growth index, has achieved a compound annual return of 16.7% since its inception in 2010, outperforming the S&P 500’s average annual return of 14%. With tech-heavy exposure, particularly in information technology (41.4% vs. 34.6% in the S&P 500), the ETF is well-positioned to continue its performance in 2026 as demand in sectors like AI grows.

As of November 30, 2025, the Growth ETF’s weightings show a significant tilt towards high-growth sectors, including 41.4% in information technology, suggesting a robust outlook for returns as companies like Microsoft, Amazon, and Nvidia capitalize on ongoing technology demands.

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