Prediction: This Magnificent Vanguard Index Fund Will Beat the S&P 500 Again in 2025
The S&P 500 (SNPINDEX: ^GSPC) delivered a return of 25% (including dividends) last year, but had you invested in the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) instead, you would have earned a much higher return of 35.9%. The exchange-traded fund (ETF) tracks the performance of the S&P 500 Growth index, which holds 211 of the best-performing growth stocks from the regular S&P 500. But last year's result wasn't a one-off because the Vanguard ETF has outperformed the S&P 500 every year, on average, since it was established in 2010. Here's why I think that trend will continue in 2025, despite the ETF starting the year on the back foot relative to the S&P.Image source: Getty Images.Continue reading
The S&P 500 (SNPINDEX: ^GSPC) delivered a return of 25% (including dividends) last year, but had you invested in the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) instead, you would have earned a much higher return of 35.9%. The exchange-traded fund (ETF) tracks the performance of the S&P 500 Growth index, which holds 211 of the best-performing growth stocks from the regular S&P 500.
But last year's result wasn't a one-off because the Vanguard ETF has outperformed the S&P 500 every year, on average, since it was established in 2010. Here's why I think that trend will continue in 2025, despite the ETF starting the year on the back foot relative to the S&P.
Image source: Getty Images.
