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Some growth ETFs are riskier than others, but all are designed to earn greater returns over the long term.
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From technology-focused funds to mega-cap growth ETFs, these investments can outperform your returns.
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However, it is important to consider your risk tolerance before purchasing.
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10 stocks we like better than Vanguard Information Technology ETF ›
Growth ETFs are designed to earn above-average returns over time, and the right fund can supercharge your returns.
While there’s no way to know where the market is headed in 2026, these three Vanguard ETFs have a history of outperforming S&P 500 (SNPINDEX: ^GSPC) over several years. If they continue to earn similar returns, there is a chance that these ETFs could crush the market going forward.
the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) tracks the S&P 500. However, instead of including all stocks from the index, it only includes those with the highest potential for long-term growth. This increases the likelihood that they will earn above average returns over time.
In fact, over the last 10 years, this ETF has achieved an average rate of return of 16.69% per year — compared to the Vanguard S&P 500 ETF‘s (NYSEMKT: FLIGHT) average annual return of 14.58% in that time.
The Vanguard S&P 500 Growth ETF relies heavily on technology stocks, which has helped fuel its faster growth over the past decade. If technology stocks continue to thrive in the coming years, this fund may have even more to climb.
the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) it is unique in that it only targets extremely large companies. While large-cap stocks have a market cap of more than $10 billion, large caps are generally defined as those with a market cap of at least $200 billion.
This ETF contains only 66 stocks, making it much more niche and less diversified than the S&P 500 Growth ETF. However, that narrower approach has also led to higher returns, as it is more focused on large, high-performing growth stocks.
Over the last 10 years, this ETF has achieved an average rate of return of 18.08% per annum. It has increased even more over the past three years, with a staggering average annual return of 30.55% in that time. Keep in mind that while its narrow approach can be advantageous in some ways, it can also lead to greater short-term volatility.
Investing in an industry-specific fund can be a smart way to gain exposure to a particular market sector, andhe is Vanguard Information Technology ETF (NYSEMKT:VGT) contains 322 stocks from all areas of the technology sector.
Almost a third of this ETF is allocated to semiconductor stocks, which play a significant role in the development of artificial intelligence (AI). If AI continues to rise in the coming years, this ETF could help investors gain exposure to this sector with less risk than buying individual stocks.
With technology stocks rising in recent years, this ETF has seen substantial gains. It has achieved an average rate of return of 22.18% per year over the past 10 years, outperforming both the S&P 500 Growth ETF and the Mega Cap Growth ETF in that time.
Higher earning potential often comes with greater risk, however. While this fund is well diversified in the technology sector, containing more than 300 stocks, it is still dedicated to just one industry. If you choose to buy, make sure the rest of your investments are spread across other market sectors to reduce your risk.
Again, no one knows where the market will be in a year or two, and these three ETFs are more susceptible to volatility during a market downturn. It is wise, then, to keep a long-term perspective and be prepared to hold your investment for at least five to 10 years to soften the impact of potential volatility.
That said, if these ETFs continue to earn returns in line with their 10-year averages, they could be incredibly profitable going forward. If you were to invest $200 a month in the Vanguard S&P 500 ETF against any of these three growth funds, here’s roughly how much you could accumulate over time.
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Number of Years
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Total Portfolio Value: Voo-14.58% AVG. Annual Report
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Total Portfolio Value: VOOG-16.69% Avg. Annual Report
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Total Portfolio Value: MGK-18.08% AVG. Annual Report
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Total Portfolio Value: VGT-22.18% AVG. Annual Report
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15
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$110,000
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$131,000
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$147,000
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$208,000
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20
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$234,000
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$301,000
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$355,000
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$584,000
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25
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$478,000
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$667,000
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$833,000
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$1,608,000
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Data source: Author calculations via investor.gov.
When investing in higher risk ETFs, there is always a chance that they may underperform — especially in the short term. However, if the technology sector continues to thrive and growth stocks experience significant growth, these ETFs could prove profitable over time.
The right investment can help build wealth that lasts a lifetime, and growth ETFs have a stronger chance of earning above-average returns. If you’re willing to take on more risk in exchange for potentially higher returns, these three Vanguard funds can help you beat the market in 2026 and beyond.
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Katie Brockman holds positions in Vanguard Admiral Funds-Vanguard S&P 500 Growth ETF, Vanguard Information Technology ETF, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Prediction: These 3 Vanguard ETFs Could Crush the S&P 500 in 2026 and Beyond was originally published by The Motley Fool
