Prediction: These 3 Vanguard ETFs Could Crush the S&P 500 in 2026 and Beyond
The Motley Fool·2025-12-20 16:30

Core Insights - Growth ETFs are positioned to potentially generate above-average returns, with specific Vanguard ETFs showing a history of outperforming the S&P 500 over several years [1] Group 1: Vanguard S&P 500 Growth ETF - The Vanguard S&P 500 Growth ETF (VOOG) focuses on stocks with the highest potential for long-term growth, increasing the likelihood of higher returns [2] - Over the past 10 years, VOOG has achieved an average annual return of 16.69%, outperforming the Vanguard S&P 500 ETF (VOO) which had an average annual return of 14.58% [3] - The ETF has a significant allocation to tech stocks, which has contributed to its faster growth [4] Group 2: Vanguard Mega Cap Growth ETF - The Vanguard Mega Cap Growth ETF (MGK) targets extremely large companies with market caps of at least $200 billion, containing only 66 stocks [4][5] - This ETF has delivered an average annual return of 18.08% over the past 10 years, with a remarkable 30.55% average annual return over the last three years [6] Group 3: Vanguard Information Technology ETF - The Vanguard Information Technology ETF (VGT) includes 322 stocks from the technology sector, with a significant portion allocated to semiconductor stocks, which are crucial for AI development [7][8] - VGT has achieved an average annual return of 22.18% over the past 10 years, surpassing both VOOG and MGK [10] Group 4: Investment Potential - If these ETFs maintain their 10-year average returns, they could yield substantial portfolio values over time, with projections showing significant growth for consistent monthly investments [13][14] - The potential for higher returns comes with increased risk, particularly during market downturns, necessitating a long-term investment strategy [12][15]