Stock Market Sell-Off: Meet the Unstoppable Vanguard ETF Obliterating the S&P 500 in 2026
Key PointsInvestors are trimming their exposure to artificial intelligence (AI) stocks amid worries about the sustainability of the infrastructure spending boom, and it's weighing on the S&P 500.
Growth stocks have consistently generated high capital returns due to companies' rapid revenue and earnings expansion, particularly in the artificial intelligence (AI) sector. In contrast, value stocks typically offer modest returns but provide shareholders income through regular dividends. The Vanguard Morningstar Value ETF (VTV) focuses exclusively on America's top value stocks and has outperformed the benchmark S&P 500 index in 2026, returning 17.2% compared to the S&P's 7.4%.
The S&P 500 has considerable exposure to the growth-heavy technology sector, which is currently experiencing a sharp correction amid concerns about the sustainability of AI infrastructure spending. The Vanguard ETF, tracking the Morningstar U.S. Large Cap Value index, holds 298 of America's biggest value stocks, with a technology sector weighting of just 10.6% compared to the S&P's 35.5%.
The top 10 holdings in the Vanguard ETF include a diverse mix of technology, financial, energy, consumer, and healthcare stocks. Despite JPMorgan Chase and Berkshire Hathaway's stable performance, the Vanguard ETF's lower technology exposure and dividend yield of 1.7% make it outperform the S&P 500, especially during turbulent periods.
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