The Surprising Vanguard ETF That Is Soaring Past Tech Funds This Year

2026-03-10 12:20:00 ET

Tech stocks appear to have fallen out of favor with investors this year. Concerns about not only high valuations but excessive spending on artificial intelligence (AI) appear to be weighing on even some of the best companies in the world. As of Monday's close, tech giant Microsoft has fallen by more than 15%, which is uncharacteristically bad for what's normally a fairly low-risk stock.

It's not just Microsoft, either. Tech stocks as a whole aren't performing well, and that's evident through the State Street Technology Select Sector SPDR ETF , which gives investors access to the tech stocks within the S&P 500 index. The tech-focused exchange-traded fund (ETF) is down by 3%. Last year, it surged by 24%.

Investors have instead been loading up on safer investments. One ETF that's been outperforming tech right now may come as a bit of a surprise, given that its focus is on utilities. The Vanguard Utilities Index ETF (NYSEMKT: VPU) is up an impressive 9% thus far. Here's why it can continue to be a good investment as the year goes on.

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