The Growth ETF Quietly Outperforming the Vanguard 500 S&P ETF Over the Last Decade
2026-06-03 16:11:00 ET
One of the most difficult things to do as an investor is to consistently beat the S&P 500 . Over the past decade, only about 14% of actively managed large-cap funds have been able to do so.
The secret to the S&P 500's success, and the exchange-traded funds (ETFs) that track the index -- such as the Vanguard 500 S&P ETF -- is that the index uses a much different philosophy than most actively managed funds. The natural instinct of most professional fund managers is to take profits in stocks on the way up so that their positions don't become too large a percentage of their portfolio, in order to manage risk. At the same time, they will often double down on their losers, believing the market is mistaken and that their thesis will eventually play out.
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