Prediction: This Unstoppable Vanguard ETF Will Beat the S&P 500 Yet Again in 2026

Core Viewpoint - The Vanguard Growth ETF has consistently outperformed the S&P 500, with a return of 16.3% year-to-date compared to the S&P 500's 13.2% [2][3]. Group 1: ETF Performance - The Vanguard Growth ETF has outperformed the S&P 500 every year since its inception in 2004 [2]. - The ETF has delivered a compound annual return of 11.9% since 2004, surpassing the S&P 500's average annual gain of 10.4% [10]. Group 2: Investment Strategy - The Vanguard Growth ETF invests in the top 85% of U.S. listed companies by market value, focusing on high-growth stocks [4]. - The ETF holds only 165 stocks, indicating a high concentration of wealth, with the top five holdings representing a combined market capitalization of $15.8 trillion [5]. Group 3: Key Holdings - The top five holdings in the Vanguard ETF are Nvidia, Microsoft, Apple, Amazon, and Broadcom, with Nvidia having the highest weighting at 12.29% [5]. - These top five stocks have delivered an average return of 20% this year, significantly higher than the S&P 500 [5]. Group 4: AI Sector Influence - Nvidia and Broadcom are leading suppliers of chips for data centers, with Nvidia's GPUs being highly sought after for AI workloads [7]. - Microsoft and Amazon are major providers of cloud services and AI software, with their platforms supporting AI development [8]. - The Vanguard ETF also includes other prominent AI stocks like Meta Platforms, Alphabet, and Palantir Technologies, while maintaining some diversification with non-tech stocks [9]. Group 5: Future Outlook - The AI boom is expected to drive stock market returns, with significant investments projected in AI infrastructure, estimated at $4 trillion by 2030 [12]. - The ETF's sector-agnostic approach ensures that it will continue to invest in the largest growth stocks, regardless of industry performance [13][14].