Top Vanguard Index Funds Outperforming the S&P 500 This Year

Vanguard ETFs Outperform S&P 500

The Vanguard U.S. Momentum Factor ETF (VFMO) and the Vanguard Information Technology ETF (VGT) have both significantly outperformed the S&P 500 year-to-date, with returns of 22% and 23%, respectively. Comparatively, the S&P 500 has increased by 10% during the same period. The Momentum Factor ETF is actively managed and targets stocks with strong recent performance, while the Information Technology ETF focuses on stocks in the tech sector, anticipating gains from the artificial intelligence boom.

Key Performance Data

• The Vanguard U.S. Momentum Factor ETF has returned 88% over the last three years, equating to an annualized return of 23.4%, compared to 71% for the S&P 500 (19.6% annualized).
• The Vanguard Information Technology ETF achieved a remarkable 105% return over three years (27.1% annually), leading to a 46 percentage point outperformance over the S&P 500 in the last five years.
• Currently, the Momentum Factor ETF includes top holdings like Alphabet and AMD, while the Information Technology ETF has major investments in Nvidia and Apple.