Will Vanguard Growth Keep Crushing Its ETF Peers?

Group 1 - The article discusses the ongoing interest of exchange-traded fund (ETF) investors in funds that can deliver long-term outperformance, highlighting the variety of ETFs available to capitalize on market trends [1] - Growth investing has shown significant success since the financial crisis, with the Vanguard Growth ETF outperforming the market over extended periods, though future performance remains uncertain [2] - The growth versus value investing debate has evolved, with growth stocks outperforming value stocks by an average of nearly four percentage points per year during the 2010s and continuing this trend into the early 2020s [4] Group 2 - Research from WisdomTree indicates that between 2017 and 2024, growth stocks outperformed value stocks by 10 percentage points annually, with earnings growth accounting for less than half of this difference [5] - A significant portion of the performance difference, specifically 6.6 percentage points, is attributed to greater multiple expansion in the growth stock sector, overshadowing the 1.4 percentage point advantage of value stocks due to higher dividend yields [5]