This Vanguard ETF Consistently Beats the S&P 500. Here's Why More Outperformance Is Possible.

The Vanguard Russell 1000 Growth ETF (VONG) has outperformed the S&P 500 by approximately 1.37 percentage points annually since inception and 3 percentage points over the past decade, primarily due to its heavy concentration in large-cap growth and AI stocks. However, this outperformance carries concentration risk, as nearly 70% of holdings are tech companies, meaning sector weakness could quickly reverse gains.