Prediction: This Unstoppable Vanguard ETF Will Beat the S&P 500 in the Second Half of 2026
Some of America's largest growth stocks are down this year, but a recovery might be on the way.
Overview
The S&P 500 (SNPINDEX: ^GSPC) is a diversified stock market index made up of 500 companies from 11 different economic sectors. But then there is the S&P 500 Growth index, which exclusively invests in the top 145 growth stocks from the regular S&P 500, while disregarding the other 355 stocks.
Therefore, the Growth index has much larger positions in the trillion-dollar technology giants that typically lead the broader market higher, resulting in consistently better annual returns compared to the S&P 500. However, many of those stocks -- which I'll highlight shortly -- have actually underperformed the market so far this year.
Details
The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) tracks the S&P 500 Growth index. I think the sluggish performance in some of America's largest stocks will reverse in the second half of this year, so here's why I think the exchange-traded fund (ETF) will beat the benchmark index over the next six months.
Source
Originally published at www.fool.com.
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