# VEGN ETF outperforms S&P 500 as tech stocks tumble

**Published:** 2026-08-01T10:57:58.359Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/72211aca-395f-4869-8e70-d9d649831492

VEGN delivers 13.97% annual return versus 12.83% for the S&P 500, showing strength when tech-heavy indices fall – see the numbers and market impact.

VEGN’s 13.97% five‑year annualized return topped the S&P 500’s 12.83% over the same period, highlighting the vegan‑focused fund’s resilience as tech‑heavy equities slide [4].

| At a glance | |
|---|---|
| VEGN five‑year return | 13.97% per year |
| S&P 500 (VOO) five‑year return | 12.83% per year |
| Relative outperformance | +1.14 percentage points |
| Market context | Tech‑heavy indices down 9% YTD (Nasdaq‑100) [2] |

## VEGN’s edge over the broader market
The US Vegan Climate ETF (VEGN) tracks a large‑cap growth index that excludes many traditional tech names, which have been under pressure amid heightened geopolitical tension and inflation concerns [2]. Over the past five years, VEGN’s annualized gain of 13.97% exceeds the S&P 500’s 12.83% by 1.14 percentage points, a margin that becomes more pronounced when the Nasdaq‑100 has fallen roughly 9% since the start of the year [2]. This relative strength suggests that investors seeking growth exposure without heavy tech weighting can achieve better risk‑adjusted returns in a volatile environment.

## Market reaction and broader implications
While VEGN’s outperformance is a fund‑level statistic, the broader market has reacted to the tech sell‑off by rewarding sectors and strategies that are less correlated with high‑beta tech stocks. The Nasdaq‑100’s 9% decline has driven capital toward alternative growth themes, including ESG‑oriented funds like VEGN. No immediate price movement for VEGN is reported, but the fund’s track record positions it as a potential beneficiary of continued tech weakness.

## What to watch
- **Tech earnings season:** Upcoming earnings from major tech firms could either deepen the sell‑off or provide relief, influencing the relative appeal of VEGN.  
- **Inflation and rate outlook:** Further CPI releases and Federal Reserve policy decisions may sustain the environment that favors non‑tech growth assets.  
- **ESG inflows:** Monitoring net inflows into ESG‑focused ETFs will indicate whether investor appetite for vegan‑climate themes remains strong.

VEGN’s ability to outpace the S&P 500 underscores how niche growth ETFs can thrive when traditional tech leaders falter, but the durability of this edge will hinge on the trajectory of tech valuations and broader macro‑economic conditions.

## Sources
1. 247wallst — [A 58-Year-Old Couple Discovers Their 401(k) Maxing... - 24/7 Wall St.](https://247wallst.com/personal-finance/2026/07/29/a-58-year-old-couple-discovers-their-401k-maxing-strategy-quietly-builds-a-64000-annual-tax-bomb/)
2. Streetalpha — [Ускорение роста выручки Interactive Brokers сулит взлет при...](https://streetalpha.ru/news/uskorenie-rosta-vyruchki-interactive-brokers-sulit-2026-07-29)
3. Investing — [Nasdaq 100 (NDX) Index - Investing.com](https://www.investing.com/indices/nq-100)
4. Portfolioslab — [VEGN vs. VOO — ETF comparison tool | PortfoliosLab](https://portfolioslab.com/tools/stock-comparison/VEGN/VOO)

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Cite as: TrendWatcher, "VEGN ETF outperforms S&P 500 as tech stocks tumble", https://www.trendwatcher.in/article/72211aca-395f-4869-8e70-d9d649831492