The Vanguard S&P 500 Growth ETF (VOOG) delivered a strong 35.9% return in 2024, far surpassing the S&P 500’s 25% return.
This ETF has consistently beaten the broader market since its launch in 2010. With artificial intelligence (AI) continuing to drive growth in top technology stocks, experts predict that VOOG will outperform the S&P 500 again in 2025.
Why This ETF Keeps Winning
The Vanguard S&P 500 Growth ETF focuses on high-growth stocks within the S&P 500, selecting companies with strong momentum and revenue growth.
This strategy means the ETF is heavily weighted toward AI-driven companies, which have led the market in recent years.
Here are the ETF’s top holdings as of December 31, 2024:
| Stock | Portfolio Weighting |
|---|---|
| Nvidia | 12.72% |
| Apple | 6.73% |
| Microsoft | 6.29% |
| Meta Platforms | 4.93% |
| Amazon | 4.60% |
| Tesla | 4.36% |
| Alphabet Class A | 4.27% |
| Broadcom | 4.18% |
| Alphabet Class C | 3.50% |
| Eli Lilly | 2.35% |
AI Stocks Drive Big Returns
- Nvidia, the ETF’s largest holding, is at the center of the AI revolution, powering AI models with its advanced graphics processing units (GPUs).
- Microsoft, Amazon, and Alphabet dominate cloud computing and AI-driven software.
- Meta Platforms leads in AI-powered social media and open-source AI models.
Can VOOG Beat the S&P 500 Again?
Since its launch in 2010, the Vanguard S&P 500 Growth ETF has averaged a 16.3% annual return, beating the S&P 500’s 14.1% return.
While AI stocks remain strong, investors should note that growth stocks can be volatile if the economy faces an unexpected downturn.
However, with AI expected to add $15.7 trillion to the global economy by 2030, the companies in this ETF are well-positioned for continued success. If market conditions remain stable, VOOG could once again outperform the S&P 500 in 2025.
Would you invest in this AI-driven ETF? Let us know!
