Growth ETFs Poised to Outperform S&P 500 Again in 2026 Amid Tech Rally
Megacap technology stocks continue to dominate market gains, with the Vanguard Growth ETF (VUG) and Invesco QQQ Trust (QQQ) positioned for another year of outperformance in 2026. The relentless rally, fueled by artificial intelligence (AI) demand, has propelled NVIDIA (NVDA) to become the world's largest company, while Microsoft (MSFT) and other cloud computing leaders benefit from insatiable growth.
These cash-rich, entrenched companies dominate the weightings of market-cap-weighted growth ETFs. The strategy of letting winners run has delivered consistent returns above the S&P 500 for over a decade. Dollar-cost averaging into these ETFs remains a prudent approach, as timing a potential correction risks missing ongoing gains from these market leaders.
