Vanguard's Growth ETF Usually Beats the Market After a Lagging Year. I'd Own It, but Not for a 2027 Rebound.

Vanguard's Growth ETF (VUG) is up 7% in 2026 versus 11% for the S&P 500, marking its first underperformance since 2022. While the fund has beaten the index the year after four of five prior lag years, the author cautions against expecting a 2027 rebound, noting that 2022 saw a severe 34% decline following a 2021 lag. The fund's concentration in mega-cap tech stocks and exposure to interest rate pressures are key headwinds.