Vanguard S&P 500 ETF Drops 1.99% as Infrastructure Assets Gain Favor
Vanguard’s S&P 500 ETF fell 1.99% in the past month while the Nasdaq-100 ETF rose 0.61% as markets anticipated a potential Iran conflict resolution within weeks. J.P. Morgan advises shifting into core infrastructure as capital spending surpasses depreciation, while tech earnings are expected to outpace the broad market.
1. Monthly Performance Overview
Over the past month, Vanguard’s S&P 500 ETF recorded a 1.99% decline while the Nasdaq-100 ETF delivered a 0.61% gain. This divergence reflects investors rotating toward tech-heavy benchmarks amid broader market uncertainties.
2. Geopolitical Outlook
Markets are pricing in a possible short-duration Iran conflict, with expectations for resolution within weeks. The TACO trade—betting that aggressive foreign policy will be reversed—has driven some buy-the-dip strategies but carries elevated risk.
3. Infrastructure Recommendation
J.P. Morgan highlights core infrastructure as undervalued, noting capital spending is set to exceed depreciation for the first time this century. Utilities and energy transition projects are cited as defensive plays offering liquidity and stable income streams.
4. Tech Earnings and Market Outlook
Strategists project that technology companies will lead S&P 500 earnings and revenue growth in 2026-27. This outlook suggests broad-market funds may trail tech-driven benchmarks if revenue forecasts materialize.