3 Vanguard ETFs Poised to Outperform as the Market Shifts Beyond Big Tech
2026-07-15 10:25
•Todd Shriber •The Motley Fool
••• ••••• Axe Capital view
Beyond Big Tech: Three Vanguard ETFs Worth Watching
As global markets move away from big tech, healthcare, value, and small-cap ETFs show fresh promise.
The US market is shifting gears. Big tech, after years of dominance, is no longer the clear safe bet, and rotation into sectors like healthcare and value is gaining traction. Vanguard’s Healthcare ETF (VHT) is leading this charge, buoyed by biotech breakthroughs and a surge in obesity drug prospects—elements South African investors can relate to through Naspers’ biotech interests. On the value front, VTV’s rally reminds us that beaten-down sectors often surprise when investors reassess risk and reward. South African banks and resource plays might mirror some of this value rekindling locally. Smaller companies, represented by VB, are enjoying strong earnings forecasts and attractive prices, a pattern we’ve occasionally seen in mid-cap JSE names but seldom as cleanly as abroad. That said, emerging market sensitivities and rand volatility could temper enthusiasm. If the dollar weakens or inflation spikes unexpectedly, these trends might stumble. For now, the patient investor can look beyond tech giants for growth and diversification—. this is just my opinion and not financial advice
I’d watch VHT to tap into healthcare innovation and consider value plays with some exposure to South African banks. Small caps deserve a look but stay selective given volatility. Avoid chasing big tech momentum for now.
- VHT
- VTV
- VB
- USD/ZAR
- Naspers
- Rand volatility affecting offshore earnings
- Renewed tech strength reversing rotation trend
6/10
As the market broadens beyond technology stocks, three Vanguard ETFs are positioned to benefit: the Healthcare ETF (VHT) is rallying on strong biotech and obesity drug prospects, the Value ETF (VTV) stands to gain as value stocks show renewed momentum after nearly two decades of underperformance, and the Small-Cap ETF (VB) is accelerating with attractive valuations and improving earnings estimates.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Todd Shriber
Categories: Equities, Earnings, Healthcare
Tickers: VHT, VTV, VB, LLY, MU
Sentiment: Positive - Up 5.6% for the month ending July 10, near 52-week highs, supported by strong second-quarter earnings guidance and tailwinds from biotech and obesity drugs (Goldman Sachs raised 2030 obesity drug sales forecast by 15%) Up 14.8% year-to-date, positioned to benefit from potential market rotation away from growth stocks; value stocks are considered under-owned and showing signs of life after nearly two decades of underperformance
Keywords: market rotation, beyond tech, value stocks, small-cap stocks, healthcare sector, biotech, obesity drugs, market breadth
Insights:
- VHT: Positive: Up 5.6% for the month ending July 10, near 52-week highs, supported by strong second-quarter earnings guidance and tailwinds from biotech and obesity drugs (Goldman Sachs raised 2030 obesity drug sales forecast by 15%)
- VTV: Positive: Up 14.8% year-to-date, positioned to benefit from potential market rotation away from growth stocks; value stocks are considered under-owned and showing signs of life after nearly two decades of underperformance
- VB: Positive: Up 15.4% year-to-date with rally rooted in credible fundamentals including attractive valuations relative to larger stocks and increasingly bullish forward earnings estimates