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Prediction: These Unstoppable ETFs Will Crush the S&P 500 Again in 2026

Prediction: These Unstoppable ETFs Will Crush the S&P 500 Again in 2026

Author:
foolstock
Published:
2025-10-11 21:53:00
8
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Relentless funds set to dominate traditional benchmarks for another year running.

The Performance Engine

While Wall Street analysts chase yesterday's winners, these ETFs keep printing gains that leave the S&P 500 eating dust. No fancy algorithms—just consistent execution where it matters.

2026 Outlook: More of the Same

The same structural advantages that powered past outperformance remain fully intact. Market volatility? These funds treat it as fuel rather than friction.

Meanwhile, traditional money managers will likely continue justifying their fees while underperforming simple index strategies—because apparently complex PowerPoint presentations beat actual returns in modern finance. The beat goes on.

Vanguard Growth ETF

An investment in the Vanguard Growth ETF is a simple bet that large-cap growth stocks will continue to outperform value stocks. The ETF tracks the performance of the, which is essentially the growth side of the S&P 500.

Its top 10 holdings are very similar to the S&P 500, but you're getting these stocks in a much higher concentration, since it doesn't hold any value stocks. The fund's top 10 holdings make up more than 60% of its portfolio, compared with less than 40% for the S&P 500 itself. Meanwhile, over 60% of its holdings are in tech stocks, while a third of the S&P is made up of technology names.

That concentration is exactly why it tends to outperform when tech and growth stocks lead the market. It has been outpacing the broader index for years. Over the past decade, it's generated an average annual return of 18% compared to 15.3% for the S&P 500. While that may not sound like a lot, with a $10,000 investment, that WOULD be the difference between an ending balance of around $52,300 versus $41,500 for an ETF that tracks the S&P 500.

A stock screen with data and the letters ETF.

Image source: Getty Images.

Invesco QQQ Trust

Another ETF that looks well positioned to outperform the S&P 500 again in 2026 is the Invesco QQQ Trust. It tracks the, which focuses on the largest non-financial names on the Nasdaq exchange. The result is a tech-heavy growth fund where more than 60% of its assets sit in technology and much of the rest is in other growth areas.

Just like the S&P 500, the Nasdaq-100 is a market-cap-weighted index that is designed to let its winners run. So, when stocks like Nvidia and Microsoft soar, they naturally become a larger part of the ETF without any manager stepping in to rebalance. That means the fund rewards its winners and automatically reduces exposure to companies that fall behind.

The Invesco QQQ Trust's track record is outstanding. Over the past 10 years, it's returned around 20.3% annually, and a $10,000 investment over that period would be worth around $63,600. Even more impressively, the ETF has topped the S&P 500 more than 87% of the time on a 12-month rolling basis over this period.

As such, it's not too bold of prediction that it will once again outperform next year.

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