Prediction: This Unstoppable ETF Will Crush the S&P 500 in 2026 and Beyond
AI is driving today's bull market, and this tech ETF is set up to win.
Overview
It's hard to beat the market, especially when it's doing well. S&P Global provides an annual "scorecard" of how large-cap mutual funds perform in comparison with the S&P 500, and nearly every year, most mutual funds underperform. In 2025, for example, 79% of funds underperformed when the S&P 500 gained more than 16%.
When the market is thriving, it's driven by growth stocks, and many growth-focused exchange-traded funds (ETFs) are, in fact, outperforming the market right now.
Details
High-growth tech stocks and ETFs also fall harder in bear markets, but over time, since there are more and longer bull markets than bear markets, many growth ETFs come out on top. Consider the Vanguard Information Technology ETF (NYSEMKT: VGT). It's up 23% year to date, more than double the S&P 500. Here's why that should continue this year and beyond.
Source
Originally published at www.fool.com.
Related Articles
- Prediction: Kevin Warsh and the Federal Open Market Committee (FOMC) Will Not Raise Interest Rates in 2026
- Investors are in the dark about the Fed’s decision this week — and that’s just how Warsh wants it
- Prediction: Greg Abel Will Buy a Stock That Warren Buffett Spent Decades Passing On for This Simple Reason