US Vegan ETF (VEGN) outperforms S&P 500 Index; set to launch International Vegan ETF (VEGX) in Sept 2026

 
Summary

• US Vegan Climate ETF (Ticker: VEGN) delivered an annualized 19.87% return since inception on Sept 9, 2019 (7 years ago), compared with 16.28% for the S&P 500 Index through June 30, 2026.
• The fund had about US$180 million in assets and gained from technology holdings such as Nvidia and Micron Technology, among other large-cap companies.
• Beyond Investing, the investment adviser to VEGN, is set to launch the International Vegan Climate ETF (Ticker: VEGX) in September 2026 on the Chicago Board Options Exchange (CBOE), a major US exchange operator.

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The US Vegan Climate ETF, known by its ticker symbol VEGN, which tracks the US Vegan Climate Index (VEGAN), has outperformed the S&P 500 Index while following 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.

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: A comparison, not a competition

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. 

And while past performance may be predictive of future performance, it may not be indicative of future results.

Technology sector helped drive VEGN’s recent gains

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.

Its holdings include major technology and consumer companies rather than a collection of small, niche businesses. The latest fund data shows Nvidia, Micron Technology, AMD, Apple, Broadcom, and Alphabet (Google) among its largest holdings. 

The fund's strong performance has been helped by its tilt towards US technology companies.

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

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$186 million, 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.

New International Vegan Climate ETF (VEGX) will add markets outside the US

Beyond Investing is now preparing the next part of its investment strategy, having filed for an international version ETF earlier this year. 

The International Vegan Climate ETF, ticker symbol VEGX, is set for launch in September 2026 on CBOE. The fund will track the Beyond Investing International Vegan Climate Index (VEGANX), benchmarked to the MSCI World ex-US Index.

Beyond Investing says the international VEGX fund can sit alongside VEGN because it excludes US companies, so investors could potentially combine both funds rather than simply buying two portfolios filled with the same companies. 

“If you are in the original [VEGN] fund, you can add this [VEGX] to create a global portfolio,” Smith says, adding, “We have been running the International index since June 2022, and against that [MSCI World ex-US] benchmark index — the international index has had a 2.37% excess return annualized,” ETF Express quotes Smith as saying. 

The VEGX index excludes US and Australian companies before applying its other Environmental, Social, and Governance (ESG) screening rules. It covers developed markets including Japan, Germany, Canada, Singapore, the UK and other countries.

Though VEGX is also somewhat tech-heavy, at least for now, before any sector rotations, the international portfolio is expected to have meaningful exposure to the industrials, communications services, and financial sectors as well.

The fund’s exposure to international markets doesn’t match the US market’s sector mix, as countries like Germany and Japan have larger industrial sectors than the US.

“These two funds are highly complementary to each other,” Smith says, “with no risk of portfolio replication because the international version screens out US stocks,” she added.

On a personal note, I’m also particularly excited about the upcoming launch of VEGX, which I'm adding to my portfolio alongside VEGN. I started investing in VEGN about four years ago, and it has delivered impressive financial returns, including strong performance relative to the S&P 500 over that period.

The SEC prospectus confirms that the international index was developed in 2022 and uses large- and mid-cap developed-market companies as its starting pool.

Beyond Investing’s strategy is expanding beyond just one ETF

The US and international ETF fund won't be the final step. Beyond Investing has also received investor interest in a European UCITS ETF.

Smith said the firm wants to grow at a pace supported by its own cash flow rather than launch several funds at once.

“Because we are growing organically, we can’t throw out tons of different funds at once. We need cash flow to support the second fund before we do it, but the next fund will be a UCITS ETF,” the Beyond Investing Chief Executive said.

For a small fund manager competing against some of the world’s largest ETF providers, this is a prudent, safer, and less risky approach.   

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.

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Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions.

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