Top Vanguard ETFs: Past Success and Future Potential

The Vanguard Financials Index Fund ETF has emerged as the best-performing Vanguard ETF in 2024, with a 33.6% increase year-to-date, outperforming tech-focused indices. This success is attributed to favorable economic conditions, including high interest rates and stable growth, which benefit financial stocks. The ETF's major holdings include top banks and Berkshire Hathaway. Despite its strong performance, financial stocks remain relatively cheap compared to the broader market, suggesting potential for continued growth in 2025, contingent on economic health and policy developments.