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Vanguard Growth ETF lags this year, but has long outpaced the S&P 500

VUG’s top 10 holdings make up 61.8% of the fund, and its heavy tech concentration leaves performance tied to mega-cap stocks.

Thursday, August 13, 2026 · Written up by our desk · ETFs

Vanguard Morningstar Growth ETF (VUG) has historically outperformed the S&P 500, though it is underperforming so far in 2026, according to analysis from Yahoo Finance.

The article notes that VUG focuses on large-cap growth stocks and holds 147 positions, with the top 10 companies accounting for 61.8% of assets. It says the fund is predominantly invested in technology at 69.2%, with consumer discretionary at 13.9%, industrials at 7.6%, and healthcare at 4.6%.

Since the ETF began trading in January 2004, the piece says it has outpaced the S&P 500 by a large margin on a cumulative basis, citing gains of 1,262% for VUG versus 929% for the S&P 500. It also points to a hypothetical $1,000 investment that would have grown to about $13,620 in VUG versus about $10,290 in the S&P 500, not accounting for VUG’s 0.03% expense ratio.

Yahoo Finance attributes VUG’s current underperformance largely to sluggish returns from its largest holdings, especially the “Magnificent Seven.” The article says those stocks account for 53.2% of VUG and 31.6% of the S&P 500.

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