US Vegan ETF (VEGN) outperforms S&P 500 Index

US Vegan ETF (VEGN) outperforms S&P 500 Index

Summary

• The US Vegan Climate ETF (Ticker: VEGN) delivered an annualized 19.87% return since inception on Sept 9, 2019, compared with 16.28% for the S&P 500 Index through June 30, 2026.
• As of Sept 16, 2026, VEGN had approximately US$180 million in net assets.
• As of Sept 17, 2026, the fund's top 10 holdings included Micron Technology, Apple, Advanced Micro Devices (AMD), NVIDIA, Alphabet (Google), Broadcom, Visa, Mastercard, Intel and Cisco among other large-cap companies.

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The US Vegan Climate ETF (VEGN) , which tracks the US Vegan Climate Index (VEGAN), has outperformed the S&P 500 Index while adhering to rules designed to exclude companies linked to animal harm and environmental damage.

ETF Express reported on Aug. 11 that VEGN delivered an annualized return of 19.87% since inception seven years ago. The S&P 500 returned 16.28% over the same period, based on net asset value through June 30, 2026.

The VEGN fund uses a passive, rules-based investment approach. Its underlying index begins with approximately 500 of the largest US-listed companies and excludes companies that derive more than a significant proportion, generally more than 2%, of revenue from specified prohibited activities.

These screening criteria cover areas including animal testing and animal-derived products, fossil fuel extraction and energy production, certain environmentally damaging activities, tobacco, military and defense activities, and specified human rights concerns.

Beyond comparing VEGN with the S&P 500 Index, we can also compare it with popular ETFs that track the benchmark, such as the Vanguard S&P 500 ETF (VOO), a widely followed S&P 500 ETF that serves as a helpful point of reference for investors considering VEGN. 

VEGN vs. VOO Year-by-Year Total Returns Comparison | Source: FinanceChart.com (Data as of Aug 18, 2026)

The ETF comparison above shows their year-by-year total returns, including reinvested dividends, to illustrate how VEGN has performed relative to a popular broad-market ETF over the same periods.

VEGN vs. VOO and the S&P 500 Index: A comparison, not a competition; they use different approaches to US equities

The VEGN vs. VOO ETF performance comparison above isn’t meant to dismiss VOO or to suggest that VEGN will always outperform it.

VOO’s performance history speaks for itself. It has a long and successful track record and deserves credit for providing investors with broad exposure to some of America’s largest companies at an impressively low cost.

The purpose of showing VEGN alongside VOO is only to demonstrate that choosing a vegan and climate-focused ETF over VOO, SPY, IVV, or any other funds that track the S&P 500 Index doesn’t automatically mean giving up the opportunity to achieve competitive financial returns.

For vegans, the performance comparison can offer reassurance that investing in line with personal values and ethics also does not necessarily mean sacrificing performance.

Non-vegan investors may also find the VEGN investing approach worth considering on its own merits.

Markets change, and past performance can never guarantee future results, so neither ETF should be viewed as a permanent winner nor loser. The comparison is simply a snapshot of how the two investments have performed over the period shown.

The S&P 500 comparison is useful because it provides a broad-market reference point, but the two investments are constructed differently. VEGN uses additional screening criteria that exclude companies and industries that would otherwise be eligible for the S&P 500, resulting in different sector exposure, portfolio composition, and performance. 

The figures are historical and aren't meant to be a forecast or indication of future results. The fund's published performance data also notes that investment return and principal value fluctuate, and shares may be worth more or less than their original cost when sold.

The comparison is therefore not simply a question of which ETF has produced the higher return over a particular period. The funds have different objectives, screening rules, portfolio construction, costs, sector exposures and liquidity characteristics, all of which can affect an investor's experience.

Historical performance can be useful for understanding how the funds have behaved over a given period, but it doesn't establish that either ETF will outperform the other in the future.

VEGN and the Vanguard S&P 500 ETF (VOO) both provide exposure to US equities, but they aren't designed to achieve the same investment objective or to use the same portfolio construction methodology.

VEGN vs VOO: Key differences in investment approach

The comparison is therefore not simply a question of which ETF has produced the higher return over a particular period. The funds have different objectives, screening rules, portfolio construction, costs, sector exposures and liquidity characteristics, all of which can affect an investor's experience.

Historical performance can be useful for understanding how the funds have behaved over a given period, but it doesn't establish that either ETF will outperform the other in the future.

Technology companies represent a meaningful portion of VEGN's portfolio allocations

The VEGN ETF began trading in 2019 and was created by Beyond Investing. Its approach removes companies involved in areas such as fossil fuels, animal exploitation, weapons, single-use plastics, and human rights concerns.

Claire Smith, Chief Executive of Beyond Investing, said the screening process excludes entire industries harmful to animals and the environment, leaving the portfolio with greater exposure to other sectors.

VEGN's holdings include large technology, financial, communications, healthcare, consumer, and other companies. Its screening methodology can result in sector weights that differ from those of the S&P 500 because companies that meet the index's prohibited-activity criteria are excluded.

As of Sept. 20, 2026, the fund's top 10 holdings were: 

VEGN Top 10 Holdings: Sept 20, 2026

The above 10 holdings represented approximately 38.44% of the portfolio as of Sept. 20, 2026. Holdings and weightings, however, can change over time.

The technology sector has been one of the biggest beneficiaries of that approach in driving VEGN’s success. Nvidia and Micron Technology were among the holdings that helped VEGN during the second quarter of 2026, creating an interesting twist in the vegan investing story.

Investors might expect VEGN, built around animal welfare and climate concerns, to lean heavily towards green energy companies. However, while VEGN does hold renewable-energy-related businesses, technology businesses have played a bigger role in its recent performance.

The strategy also carries a trade-off: VEGN excludes the entire energy sector, so its performance can lag when oil stocks perform strongly. To prevent or at least reduce such impacts, Smith said the fund instead invests in renewable-energy companies, including businesses that supply equipment for solar and wind power, which have helped VEGN perform well nevertheless.

VEGN portfolio looks more mainstream than the name suggests

The Daily Upside reported in February that VEGN was the only vegan-themed ETF in the US at the time of its inception, giving the fund a small but distinct place among investors who want their money to follow similar ethical values.

Tom Nowak, an adviser at Quantum Financial Planning, said he had 20 to 30 vegan clients at the time, and most of them included VEGN in their portfolios.

The fund gives investors exposure to large US companies without requiring them to screen every company themselves. Its holdings can still resemble a conventional large-cap portfolio. The difference lies in which companies get removed before the portfolio is built.

VEGN had about US$135 million in assets in that period. More recent figures from the fund put assets at about US$184 million as of Sept 20, 2026, showing that the portfolio has continued to grow and attract investors over time.

New net money flowing in also increased from US$1 million in 2023 to US$3 million in 2024 and US$13 million in 2025, according to Morningstar Direct data cited by The Daily Upside.

Though VEGN is still tiny compared with the largest ETFs in the market, it has demonstrated investor demand for investment products built around personal and ethical values.

Beyond Investing’s investment strategy has proven that you can exclude many industries that aren’t animal- or environment-friendly and still achieve strong and profitable returns with a portfolio full of companies that are doing very well, if not better, among the very best.

VEGN index screens out specified prohibited activities

The Beyond Investing US Vegan Climate Index (VEGAN) was developed in 2018. Its construction begins with the Solactive US Large Cap Index, which consists of approximately 500 of the largest US-listed companies before being excluded if they derive more than a de minimis proportion, generally more than 2%, of total revenue from specified prohibited activities.

The index's screening categories include:

• Animal testing and animal-derived products
• Animal farming and other animal exploitation activities
• Animals in sport and entertainment
• Fossil-fuel extraction, refining and related activities
• Burning fossil fuels for energy production
• Other activities with significant negative environmental impacts
• Tobacco products
• Armaments and products specifically designed for military and defense uses
• Certain human-rights and child- or forced-labor concerns

The remaining companies are initially weighted by market capitalization, with additional rules applied to limit individual company weights and maintain sector representation relative to the starting universe.

As of Oct 31, 2025, the index contained 252 companies. The index is reconstituted on the first Wednesday of each June and December, based on data from 10 business days before each reconstitution.

VEGN's portfolio and investment risks

The screening methodology is an important part of VEGN's investment strategy, but it also creates differences from broader US equity funds.

Because the index selects securities based on non-financial criteria, the fund's prospectus states that VEGN may underperform the broader equity market or funds that don't use similar selection criteria.

The fund also carries general equity-market risk and sector and concentration risks. If the index becomes more heavily exposed to particular industries, VEGN can be more sensitive to developments affecting those sectors.

As an ETF, VEGN also faces trading and liquidity risks. Shares trade at market prices rather than directly at net asset value (NAV), meaning investors can buy at a premium or discount to NAV. Bid-ask spreads can also vary depending on trading activity and market conditions.

The fund is passively managed and doesn't attempt to take defensive positions during declining markets. Its performance can also differ from that of the underlying index due to fees, transaction costs, sampling, and other factors.

VEGN's assets and fund structure

As of Sept 20, 2026, VEGN had approximately US$184 million in net assets.

The fund's total expense ratio is 0.60% per year on the first US$150 million of average daily net assets and 0.50% on assets above US$150 million.

VEGN is listed on the Cboe BZX Exchange. Beyond Investing LLC is the investment adviser, while Penserra Capital Management, LLC serves as sub-adviser. Quasar Distributors, LLC is the fund's distributor.

The fund began operations on Sept. 9, 2019.

Fund disclosures

For the fund's current holdings, investors can refer to the official VEGN fund website. Holdings and weightings are subject to change.

Investors should review the VEGN prospectus for information about the fund's investment objective, strategy, fees, expenses, principal risks, tax considerations and other important information.

The prospectus states that the US Securities and Exchange Commission has not approved or disapproved the securities or passed upon the accuracy or adequacy of the prospectus.

VEGN is advised by Beyond Investing LLC and distributed by Quasar Distributors, LLC. The fund's prospectus and other shareholder documents are available through the fund's website and the SEC's EDGAR database.

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Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Past performance doesn't guarantee future results. The value of investments can rise or fall, and investors may lose some or all of their principal. Holdings and portfolio weightings are subject to change. Investors should read the fund's prospectus and conduct their own due diligence before making major financial and investment decisions.

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