A Motley Fool analyst forecasts that the Vanguard Small-Cap Value ETF (VBR) is poised to outperform the S&P 500 through 2027. The prediction is based on VBR's cheaper valuations, trading at a forward P/E ratio of around 14 compared to the Vanguard S&P 500 ETF's (VOO) 20 multiple, and accelerating small-cap earnings growth. Small-cap earnings are expected to grow by 18% in both 2026 and 2027, driven by the artificial intelligence (AI) boom, with 2027 potentially marking the first time small-cap earnings growth surpasses that of the S&P 500 in several years.