Only 8 Vanguard ETFs Beat the S&P 500 Over Five Years, and Energy Dominates

What happened

According to the article, only eight Vanguard exchange-traded funds (ETFs, which are investment funds traded on stock exchanges) beat the S&P 500 index, specifically the VOO ETF, over the past five years. The top performers were led by energy and technology funds.

Confirmed

Global impact / market context

This shows how hard it is for most funds to outperform the S&P 500, a broad measure of large U.S. stocks. For investors, it suggests that low-cost index funds like VOO may be a simpler way to achieve market returns than picking specialized ETFs.

Analyst inference

Energy and technology funds likely benefited from high oil prices and tech growth, but their dominance may not last. If those sectors slow, other ETFs could lag further, reinforcing the S&P 500's strength as a diversified benchmark for long-term investors.

Analyst inference

What to watch

1. The article states that only eight Vanguard ETFs beat VOO over five years, confirming that the S&P 500's performance is a tough benchmark to surpass. Confirmed
2. Investors might consider reviewing which specific energy and technology ETFs outperformed, but the article does not name them, so further research would be needed. Proposed
3. Watch whether energy and tech sectors continue to drive gains, as that could influence whether these ETFs keep beating the S&P 500 in the coming years. Analyst inference

Evidence

• coinpaper.com