Top Vanguard ETF Crushing S&P 500 Returns So Far in 2026

The Vanguard High Dividend Yield ETF (VYM) is outperforming the S&P 500 by approximately 3 percentage points year-to-date in 2026, driven by strong performance in energy, industrials, and value stocks rather than tech. With a lower forward P/E ratio of 16 compared to the S&P 500's 23, the ETF is benefiting from a market rotation toward dividend and value stocks, a trend expected to continue due to anticipated higher interest rates and persistent inflation.