Buy These 3 Vanguard Index Funds and You Could Beat the S&P 500 Over the Next 5 Years

1 hour ago 3

Anders Bylund, The Motley Fool

Sat, April 25, 2026 astatine 9:27 AM CDT 3 min read

Look, the S&P 500 (SNPINDEX: ^GSPC) is great. Buying the Vanguard S&P 500 ETF and forgetting astir it for 30 years is simply a perfectly respectable mode to physique wealth. Nobody's going to justice you astatine the status party, particularly if you tin spend serving lobster thermidor and Wagyu beef.

But "hard to beat" isn't the aforesaid arsenic "unbeatable." Some Vanguard scale funds thin to outperform the S&P 500 implicit rolling five-year periods. The market-beating margins tin beryllium substantial, whether the banal marketplace soars oregon hits velocity bumps.

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Here are 3 of my favorites successful that elite group. The charts beneath item each fund's full returns comparative to the S&P 500 (and VOO) crossed assorted five-year periods, with crisp ups and downs.

A idiosyncratic successful a thoughtful pose, utilizing a laptop successful a modern office.

Vanguard Information Technology ETF (NYSEMKT: VGT) is for investors who look astatine the S&P 500 and think, "not capable tech." It's a concentrated bet, but tech has been the market's main maturation motor for a portion now. This exchange-traded money (ETF) lets you thin into the ongoing artificial quality (AI) roar without picking idiosyncratic winners.

Vanguard Small-Cap Growth ETF (NYSEMKT: VBK) targets smaller U.S. companies with maturation characteristics. Small caps transportation much volatility, but they've historically delivered beardown returns implicit agelong clip horizons. They person underperformed the S&P 500 successful caller years due to the fact that they don't transportation the tech titans recovered successful the accusation exertion ETF above.

Finally, the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) takes a wholly antithetic approach. It provides some geographic diversification and superior income. Instead of chasing volatile maturation stocks successful North America, it hands you a 3.5% output from planetary stocks. Turn connected dividend reinvestment and diversify abroad.

Before you bargain banal successful Vanguard Information Technology ETF, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Vanguard Information Technology ETF wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

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