Vanguard ETFs Using Momentum to Outpace the S&P 500

The article argues that two Vanguard exchange-traded funds using momentum factors have a realistic path to outperform the S&P 500 this year, which is up 10% year to date. It frames the benchmark as the primary reference point for evaluating other indexes and ETFs, then points to momentum-driven positioning. For the Vanguard Information Technology ETF (VGT), the report notes the fund holds 323 companies and is heavily concentrated, with Nvidia, Apple, and Microsoft together accounting for more than 38%. It says chip-related holdings underpin much of the ETF’s performance, with semiconductor exposure near 38% and top holdings including Micron Technology, Advanced Micro Devices, and Applied Materials. As of July 16, it states Nvidia and Apple are up 10% and 21%, while Microsoft is down more than 16%. The second ETF, the Vanguard Energy ETF (VDE), is discussed as benefiting from energy price inflation tied to the Middle East conflict.