Vanguard Growth ETF vs. Vanguard Value ETF: Which ETF Will Outperform in 2025?
As 2024 winds down, growth stocks have once again easily outperformed value stocks. If it seems like growth stocks usually outperform value stocks, you'd be correct when looking back over the past 10 years.
This can be seen in the returns of the Vanguard Growth ETF (NYSEMKT: VUG) compared to the performance of the Vanguard Value ETF (NYSEMKT: VTV). The Growth ETF tracks the CRSP US Large Cap Growth Index, which is essentially the growth side of the S&P 500, while the Value ETF looks to replicate the CRSP US Large Cap Value Index, which is basically the value side of the S&P 500.
Over the past decade, the Growth ETF has easily outpaced its Value ETF counterpart, with an average annual return of 15.6% as of the end of November. By comparison, the Value ETF has had an average annual return of nearly 10.8% over that same stretch. On a cumulative basis, that's a 326% return versus a 178% return -- a huge difference.
Source Fool.com
