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Meet the Vanguard ETF That's Crushing the S&P 500 and Nasdaq-100 Despite Not Owning Micron, Sandisk, or Any of the "Magnificent Seven" Stocks

Small-cap stocks are finally recovering after years of underperforming the major indexes.

In 2026, small-cap stocks have been outperforming their larger counterparts, including mid-, large-, and mega-cap stocks, as well as the S&P 500 and Nasdaq-100. This surprising trend has led many investors to consider the Vanguard Morningstar Small-Cap ETF (NYSEMKT: VB) as a potential investment option. The ETF's success can be attributed to its focus on small-cap stocks, which have been driving the market's gains despite not owning Micron, SanDisk, or any of the Magnificent Seven stocks.

Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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