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Prediction: This Unstoppable Vanguard ETF Will Crush the S&P 500 Again in 2026
Yahoo Financeยท2025-09-17 08:58

Core Insights - The S&P 500 has achieved a compound annual return of 10.5% since its inception in 1957, with a current return of 12.2% in 2025, while the Vanguard S&P 500 Growth ETF has delivered a return of 17.6% this year [1][2]. Group 1: Performance Comparison - The Vanguard S&P 500 Growth ETF tracks the S&P 500 Growth index, which includes only 212 top-performing growth stocks, leading to higher returns compared to the broader S&P 500 [2][5]. - The Vanguard S&P 500 Growth ETF has consistently outperformed the S&P 500 since its establishment in 2010, with expectations to continue this trend into 2026 due to strong themes like artificial intelligence [3][8]. Group 2: AI Influence - AI has been a significant driver of market returns over the past few years, reflected in the top five holdings of the Vanguard S&P 500 Growth ETF, which include Nvidia, Microsoft, Meta Platforms, Apple, and Broadcom [6][7]. - The combined portfolio weighting of these top five stocks in the Vanguard ETF is 37.3%, compared to 26.5% in the S&P 500, contributing to an average return of 476% since the AI boom began in early 2023 [7].