VOOG Set to Outshine S&P 500 Through End of 2026
The Vanguard S&P 500 Growth ETF (VOOG) has consistently outperformed the S&P 500 in recent years, and this trend is expected to continue through the remainder of 2026. In fact, since its inception in 2010, VOOG has delivered a compound annual return of 16.7%, beating the S&P 500's average annual return of 14.2% during the same period.
The ETF's outperformance can be attributed to its focus on growth stocks, which have been driven by the artificial intelligence (AI) boom. VOOG has a high weighting in information technology, with 52% of its assets allocated to this sector, compared to just 38% for the S&P 500.
The top 10 holdings of VOOG participate in the AI race and are given higher weightings than their counterparts in the S&P 500. For example, Nvidia (NVDA) has a weighting of 13.64% in VOOG compared to just 7.51% in the S&P 500.
Looking at the longer term, it's clear that VOOG has been a more rewarding investment than the S&P 500. If an investor had put $50,000 into VOOG in 2010, they would have seen their balance grow to $591,702 by 2026, compared to just $418,434 if they had invested in the S&P 500.