These two Vanguard ETFs will hit the S&P 500 this year
Many Wall Street analysts think S&P 500 This will rise for the third consecutive year in 2025. The predictions vary, but the consensus prediction is that they can jump to a stadium with an index of 10%. The S&P is already about a third of how to hit that mark.
If Wall Street is right, investors can buy the S&P 500 index Exchange Transaction Fund (ETF) etc. Vanguard S&P 500 ETF (nysemkt: flight) And enjoy a decent return. But I think there are even better options for investors who want even greater profits. We expect these two Vanguard ETFs to destroy the S&P 500 this year.
If you had to choose only one Vanguard ETF that is most likely to beat the S&P 500 in 2025, it would be Vanguard Financials ETF (nysemkt:vfh). The fund focuses solely on equities in companies in the financial services sector.
Vanguard Financials ETF currently owns a 409 Financial stocks. Its top holdings include jpmorgan chain, Berkshire Hathaway, Mastercard, visaand Bank of America. Because ETFs are weighted by market capitalization, these megacap inventory accounts for 30.7% of the total portfolio.
Since its inception in January 2004, the fund has only provided an average annual return rate of 6.7%. However, it has skyrocketed over the last 12 months, surpassing the S&P 500 at an affordable price.
On the charts, you may have noticed that the Vanguard Financials ETF really opened its S&P 500 lead in November 2024. That’s not when the US election took place. The second Trump administration’s expected policy could be particularly favorable for financial stocks, particularly with the prospect of a reduction in regulatory burden.
Vanguard S&P 500 Growth ETF (Nysmkt: Choan) Ranked as the best performance Vanguard ETF of 2024. The fund has grown by more than 31% over the last 12 months compared to the 23% profit on the S&P 500.
Growth is everything about the Vanguard S&P 500 Growth ETF. The fund is trying to track the performance of the S&P 500 growth index, including S&P 500 growth companies.
The Vanguard ETF owns 209 shares with a median market capitalization of $1.1 trillion. Its top holdings include nvidia, apple, MicrosoftFacebook parents Meta Platformand Amazon. All of these stocks, except Microsoft, have made greater profits than the S&P 500 over the past 12 months.
Can the Vanguard S&P 500 Growth ETF maintain its momentum? I think so. The seemingly insatiable demand for artificial intelligence (AI) continues to serve as a major tailwind for many of the S&P 500’s many growth stocks. , especially Nvidia, I think this is just a temporary recession.