the surge of artificial intelligence ai the supremacy of the internet giants and expectations of the feds tightening cycle nearing its end are propelling growth companies to outperform value stocks the growth equity style has made a remarkable recovery in the first five months of 2023 after experiencing a setback in 2022 due to aggressive interest rate hikes that impacted tech and other overvalued sectors the vanguard growth etf vug has outperformed the vanguard value etf vtv by a remarkable 29 so far this year while the growthoriented etf has risen 26 the valueoriented etf has struggled registering a 3 decline year to date only a month ago the performance gap between growth and value was about 8 which can offer an idea of how rapidly growthrelated companies have surged in recent weeks growth vs value in 2023 values 2022 outperformance vs growth wiped out in 5 months the roughly 50 gain that value stocks had over growth in 2022 was almost entirely wiped out by the growths outperformance in the just five months of 2023 since the great financial crisis the consistent outperformance of growth versus value stocks has been a recurrent trend in the us stock market this tendency has been supported by a protracted period of very low interest rates which has pushed up valuations in the technology and growth sectors while depressing stocks in valuerelated sectors the year 2022 looked to suggest a potential reversal of this pattern with energy stocks rising sharply and technologyrelated stocks falling precipitously however this reversal was shortlived as growth stocks reasserted their dominance in 2023 supported by a robust surge in ai and tech stocks chart 15 years of value vs growth about 70 of the vanguard growth etfs yeartodate performance can be attributed to seven stocks apple inc aapl added 47 percentage points ppt to the overall performance the vanguard value etf saw negative contributions from financials health care and energy sectors with first republic bank pfizer inc pfe johson  johnson jnj charles schwab corp schw chevron corp cvx and bank of america bac being the worst contributors to the performance