-
Some growth ETFs are riskier than others, but all are designed to achieve higher long-term returns.
-
From technology-focused funds to mega-cap growth ETFs, these investments can supercharge your gains.
-
However, it is important to consider your risk tolerance before buying.
-
10 Stocks We Like More Than Vanguard Information Technology ETF ›
Growth ETFs are designed to deliver above-average returns over time, and the right fund can supercharge your gains.
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 deliver similar returns, there is a chance that these ETFs will crush the market in the future.
The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) tracks the S&P 500. However, instead of including all stocks in the index, it only contains those with the greatest long-term growth potential. This increases the likelihood of higher than average returns over time.
In fact, over the past 10 years, this ETF has earned an average rate of return of 16.69% per year — compared to Vanguard S&P 500 ETFhis (NYSEMKT: FLIGHT) average annual return of 14.58% during that period.
The Vanguard S&P 500 Growth ETF relies heavily on technology stocks, which has helped it grow faster over the past decade. If tech stocks continue to thrive in the coming years, this fund could have even more upside.
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 capitalization of more than $10 billion, megacaps are generally defined as those with a market capitalization 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, this narrower approach has also led to higher returns because it focuses more on large, performing growth stocks.
Over the past 10 years, this ETF has achieved an average rate of return of 18.08% per year. It has grown even more over the past three years, with an astonishing average annual return of 30.55% over that period. Note that while its narrow approach can be an advantage in some ways, it can also lead to higher short-term volatility.
Investing in an industry-specific fund can be a smart way to gain exposure to a specific market sector and the 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 grow in the coming years, this ETF can help investors gain exposure to this sector with less risk than buying individual stocks.
With tech stocks on the rise 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 over that period.
However, greater earning potential often comes with greater risk. Although this fund is well-diversified in the technology sector, holding more than 300 stocks, it is still dedicated to a single industry. If you choose to buy, make sure the rest of your investments are spread across other sectors of the market to reduce your risk.
Again, no one knows where the market will be in a year or two, and all of these ETFs are more prone to volatility during market downturns. Therefore, it is wise to maintain a long-term perspective and be prepared to hold your investment for at least five to 10 years to mitigate the impact of potential volatility.
That said, if these ETFs continue to deliver 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 versus any of these three growth funds, here’s roughly how much you could accumulate over time.
|
Number of years
|
Total portfolio value: Voo-14.58% AVG. Annual report
|
Total portfolio value: VOOG-16.69% average Annual report
|
Total portfolio value: MGK-18.08% AVG. Annual report
|
Total portfolio value: VGT-22.18% AVG. Annual report
|
|
15
|
$110,000
|
$131,000
|
$147,000
|
$208,000
|
|
20
|
$234,000
|
$301,000
|
$355,000
|
$584,000
|
|
25
|
$478,000
|
$667,000
|
$833,000
|
$1,608,000
|
Data source: author’s calculations via investor.gov.
When you invest in higher-risk ETFs, there’s always a chance they’ll underperform — especially in the short term. However, if the tech sector continues to thrive and growth stocks see significant growth, these ETFs could prove profitable over time.
The right investment can help build wealth that lasts a lifetime, and growth ETFs are more likely to earn 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 outperform the market in 2026 and beyond.
Before buying shares in the Vanguard Information Technology ETF, consider the following:
The Motley Fool Stock Advisor the analyst team has just identified what they think they are 10 best stocks for investors to buy now… and the Vanguard Information Technology ETF was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $509,039!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,109,506!*
Now, it’s worth noting Stock advisor the total average return is 972% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss the latest top 10 list, available with Stock advisorand join an investor community created by individual investors for individual investors.
See the 10 stocks »
*The stock advisor returns as of December 15, 2025
Katie Brockman has 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 the 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
