3 Vanguard ETFs to Buy That Are Crushing the S&P 500 in 2026

Market Overview - As of February 17, the S&P 500 index is flat year-to-date, indicating a perception that stocks are stagnant, which contrasts with the underlying market dynamics [1] - Mega cap growth stocks are experiencing declines, while sectors such as consumer staples, energy, industrials, and materials are performing well, suggesting a divergence in stock performance [2] Investment Opportunities - The Vanguard Value ETF, with $227 billion in net assets, is the largest value-focused ETF globally, allowing for a low expense ratio of 0.03% [6] - The Vanguard Value ETF is concentrated in financials, industrials, and healthcare, which together account for 53.1% of the ETF [7] - Key holdings in the Vanguard Value ETF include JPMorgan Chase, Berkshire Hathaway, ExxonMobil, Johnson & Johnson, and Walmart, which provide stable returns and dividends, yielding 2% compared to the S&P 500's 1.2% [8] - The Vanguard Value ETF trades at a price-to-earnings (P/E) ratio of 21.7, which is lower than the S&P 500's 27.5, indicating a relative discount [9] Concentrated Investment Strategy - The Vanguard Mega Cap Value ETF is a more concentrated version of the Value ETF, with a slightly higher expense ratio of 0.05% and 123 holdings compared to 312 in the Value ETF [10] - The Mega Cap Value ETF has a higher allocation to its top five holdings, which include JPMorgan Chase, Berkshire Hathaway, ExxonMobil, Johnson & Johnson, and Walmart, with 16.1% invested compared to 13.1% in the Vanguard Value ETF [11]