"Nearly every financial article you read will tell you the same thing. Over the long haul, almost nothing beats the S&P 500. The index has compounded at roughly 10% a year for almost a century, and a single low-cost fund replicating it has become the default setting for retirement accounts across the country. Things are changing fast, and some ETFs have delivered persistent alpha for years, or even decades."
"Vanguard Growth Index Fund ETF (VUG) tracks the performance of large-cap growth stocks in the U.S. market. It does so by following the CRSP US Large Cap Growth Index. These large caps have done exceedingly well in recent years and in the past, allowing the ETF to outperform the S&P 500. The focus here is not as narrow as the mega-cap Magnificent 7 ETFs. VUG has exposure to 167 U.S. companies with "strong growth characteristics," so you also get diversification to protect you against downside risk."
"The difference in VUG's returns against the S&P 500 may look minuscule at first, but when you look at the gains holistically, it becomes significantly more attractive. If we take total gains in the past 20 years (since 2005), VUG has 557.46% in total returns against the 362.22% in total returns."
Some ETFs have significantly outperformed the S&P 500 over the past two decades, delivering persistent alpha for years or decades. Outperformance typically requires taking more risk and is not guaranteed. Certain ETFs offer low expense ratios and are structured to capture long-term growth advantages. Vanguard Growth Index Fund ETF (VUG) tracks the CRSP US Large Cap Growth Index and holds 167 U.S. companies with strong growth characteristics, offering diversification beyond mega-cap concentrated funds. Over the past 20 years since 2005, VUG returned about 557.46% compared with the S&P 500's roughly 362.22%, illustrating how growth-focused exposure can widen returns over time.
Read at 24/7 Wall St.
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