1 Unstoppable Vanguard Index Fund That Consistently Beats the S&P 500
Yahoo Finance·2025-11-12 09:18

Core Insights - The S&P 500 is composed of 500 companies across 11 sectors, including major technology firms leading in the AI revolution, as well as significant retailers and banks [1] - Since its inception in 1957, the S&P 500 has achieved a compound annual return of 10.5%, making it a recommended investment for retail investors by experts like Warren Buffett [2] - Young investors or those with a higher risk appetite may seek alternatives with greater growth potential, such as specific exchange-traded funds (ETFs) [3] S&P 500 Growth Index - The S&P 500 Growth index tracks 216 high-performing growth stocks from the S&P 500, selected based on momentum and sales growth, and rebalances quarterly [5] - This index has consistently outperformed the broader S&P 500 due to its unique selection criteria [5][7] Vanguard S&P 500 Growth ETF - The Vanguard S&P 500 Growth ETF (VOOG) mirrors the Growth index's performance by holding the same stocks with similar weightings, focusing on high-growth sectors like AI [6] - The ETF's top five holdings have significantly higher weightings compared to the S&P 500, with Nvidia at 14.58% and Alphabet at 8.17%, among others [6] - The ETF is expected to outperform the S&P 500 over the long term due to its concentrated investment in growth stocks [7]