3 Vanguard ETFs Are Beating the S&P 500 in 2026 – Should You Buy?

Market volatility has defined 2026 so far, with geopolitical tensions driving swings across the broader market. While the S&P 500 (SPX) is down about 4% year to date, some ETFs are quietly outperforming. Using TipRanks’ Best Vanguard ETFs tool, we identified the Vanguard Energy ETF VDE -3.61% ▼ , Vanguard Consumer Staples ETF VDC -0.38% ▼ , and Vanguard Mega Cap Value ETF MGV +0.25% ▲ that have posted gains so far in 2026. For investors, these ETFs could offer a more defensive way to stay invested while helping cushion portfolios against ongoing market turbulence.

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According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, all three ETFs are Moderate Buys. VDE ETF offers an upside of 7%, while VDC and MGV offer a higher upside of over 15%.

Let’s take a look at these ETFs in detail.

Vanguard Energy ETF** VDE -3.61% ▼ **

The Vanguard Energy ETF tracks the MSCI US Investable Market Energy 25/50 Index and has an expense ratio of 0.09%. VDE ETF can be a good buy for investors seeking low‑cost exposure to the energy sector, especially when oil prices are rising and energy demand is strong. However, it’s best suited for investors with a higher risk tolerance, as energy stocks can be volatile and tied closely to commodity price swings.

VDE has a beta of 0.56, meaning it tends to be significantly less volatile than the broader market. This lower beta, combined with exposure to energy stocks and dividend income, can help provide a cushion for investors looking to reduce overall portfolio risk. Notably, VDE has a dividend yield of 2.36% and pays a quarterly dividend of $0.969 per share.

In terms of holdings, VDE has 108 stocks with total assets worth $11.03 billion. Its top 3 holdings are Exxon Mobil Corp. XOM -5.23% ▼ , Chevron CVX -4.59% ▼ , and ConocoPhillips COP -2.74% ▼ .

Vanguard Mega Cap Value ETF **MGV +0.25% ▲ **

The Vanguard Mega Cap Value ETF (MGV) invests in large U.S. companies with strong value traits, focusing on stocks that appear undervalued relative to their fundamentals. It gives investors exposure to high-quality, stable mega-cap names, offering potential for long-term growth along with steady dividend income.

MGV has a slightly higher beta of 0.71 as compared to VDE. The fund has a dividend yield of 2.06%.

The fund has 126 stocks with total assets worth $11.09 billion. MGV’s top holdings include JPMorgan JPM +0.41% ▲ , Berkshire Hathaway (BRK.B), XOM, Johnson & Johnson JNJ -0.13% ▼ , and Walmart WMT +0.37% ▲ .

**Vanguard Consumer Staples ETF VDC -0.38% ▼ **

The Vanguard Consumer Staples ETF focuses on companies that sell everyday essentials such as food, beverages, and household goods. These businesses tend to be more stable, as demand for their products remains relatively steady even during economic slowdowns. As a result, VDC is often viewed as a defensive ETF, offering lower volatility compared to growth-focused sectors like technology.

VDC has a beta of 0.31, making it a relatively safer option for investors. However, its growth potential is typically more limited, as consumer staples companies tend to expand at a slower, more consistent pace. The ETF has a dividend yield of 2.15%.

VDC owns 106 stocks with total assets of $7.84 billion. Its top holdings include major consumer brands such as Walmart, Costco Wholesale COST +0.01% ▲ , and Procter & Gamble PG -0.24% ▼ .

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