3 Vanguard ETFs to Buy That Are Crushing the S&P 500 in 2026
The Motley Fool
by newsfeedback@fool.com (Daniel Foelber)February 23, 2026
AI-Generated Deep Dive Summary
The article highlights three Vanguard ETFs that are outperforming the S&P 500 in 2026, offering attractive opportunities for value investors. Despite the index being flat year-to-date, certain sectors like consumer staples, energy, industrials, and materials have seen strong gains. These areas, which hold a smaller weight in the S&P 500, have driven significant returns when components are evenly weighted, resulting in a 5.5% year-to-date increase.
The article emphasizes that while mega-cap growth stocks have struggled, other sectors have thrived, creating a favorable environment for value investors. The focus is on ETFs that target these underrepresented yet resilient areas, providing diversification and potential upside in an otherwise mixed market.
One of the recommended ETFs is Vanguard Select Mid-Cap ETF (VO), known for its blend of growth and value investing strategies. This ETF has outperformed the S&P 500 by leveraging mid-sized companies across various sectors. Another option is Vanguard Dividend Appreciation ETF (VIG), which tracks high-quality dividend-paying stocks, offering both income and growth potential.
The third ETF mentioned is Vanguard Total Stock Market ETF (VTSMF), a broad-market fund that includes small-, mid-, and large-cap stocks. This ETF provides diversification while capturing the performance of the entire U.S. stock market, making it an attractive choice for long-term investors seeking stability and growth.
For readers interested in finance, these ETFs matter because they highlight opportunities in sectors often overlooked by market-capitalization weighted indexes. By focusing on undervalued areas with strong fundamentals, value investors can capitalize on current market dynamics while maintaining a diversified portfolio. These funds offer a way to align investments with market trends that could drive future returns.
Overall, the
Verticals
financeinvesting
Originally published on The Motley Fool on 2/23/2026