10 Best Performing ETFs of the Last 10 Years

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Exchange-traded funds are popular because they allow investors to hold an entire portfolio in a single instrument that they can buy or sell at any time on a stock exchange. But even though ETFs are often traded frequently, holding them for the long term can be a way to generate significant capital gains.

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10 Best Performing ETFs of the Last 10 Years

Over the past 10 years, the 10 ETFs listed below have generated returns at least 77% higher than the average annual return of the S&P500 over the past decade, to 10.87% as of June 14, with the best ETFs nearly tripling that return.

Source: YCharts. Data is accurate as of March 31, 2024.

Note that each of the best-performing ETFs listed below is in the technology sector, which is notoriously volatile and can fall in or out of favor. In other words, even though these ETFs have done an admirable job of posting outsized returns over a significant period of time, past performance is no guarantee of future results. There is no certainty that these ETFs will be among the best ETFs for long-term performance go forward.

1. VanEck Semiconductor ETF (SMH)

• Looking back over 10 years: 27.22%
• Assets under management: $23.42 billion
• Expense rate: 0.35%
• Top five titles: Nvidia, Taiwan Semiconductor Manufacturing Co., Broadcom, Qualcomm, Micron Technology

The VanEck Semiconductor ETF, SMH, is an index tracker that tracks the 25 largest semiconductor companies listed in the United States. The ETF, like the underlying fund, is weighted by market capitalization.

2. iShares Semiconductor ETF (SOXX)

• Looking back over 10 years: 25.33%
• Assets under management: $15.93 billion
• Expense rate: 0.35%
• Top five titles: Nvidia, Broadcom, Qualcomm, Advanced Micro Devices, Micron Technology

The iShares Semiconductor ETF, symbol SOXX, tracks a different, modified index of 30 U.S.-listed semiconductor companies, weighted by market capitalization. It provides exposure to American companies involved in semiconductor manufacturing, design and distribution.

3. Invesco Semiconductor ETF (PSI)

• Looking back over 10 years: 24.08%
• Assets under management: $907.6 million
• Expense rate: 0.57%
• Top five titles: Broadcom, Nvidia, applied materials, Lam Research, Micron Technology

The Invesco Semiconductors ETF tracks an index of 30 U.S. semiconductor companies, primarily involved in the manufacturing sector. The underlying index, like the ETF itself, is rebalanced and reconstituted quarterly. The index used by PSI includes more smaller growth companies, avoiding the heavy market capitalization weighting of some of its competitors.

4. SPDR S&P Semiconductor ETF (XSD)

• Looking back over 10 years: 21.67%
• Assets under management: $1.56 billion
• Expense rate: 0.35%
• Top five titles: First Solar, Nvidia, Micron Technology, Cirrus Logic, Impinj

Those looking for equal weight Semiconductor Index ETF might consider XSD, which includes companies of various market capitalizations in the semi-equipment, technology and semi-equipment sectors.

5. The SPDR Select Technology Sector Fund (XLK)

• Looking back over 10 years: 20.68%
• Assets under management: $71.24 billion
• Expense rate: 0.09%
• Top five titles: Apple, Microsoft, Nvidia, Broadcom, Advanced Micro Devices

The Technology Select Sector SPDR fund is one of the largest and best-known index ETFs. It is heavily weighted in its top 10 holdings, which represent more than 68% of its total portfolio.

6. iShares US Tech ETF (IYW)

• Looking back over 10 years: 20.44%
• Assets under management: $18.81 billion
• Expense rate: 0.40%
• Top five titles: Microsoft, Nvidia, Apple, Broadcom, metaplatforms

The iShares US Technology ETF attempts to replicate the performance of the Russell 1000 Technology RIC 22.5/45 Capped Index.

7. Vanguard Information Technology ETF (VGT)

• Looking back over 10 years: 20.38%
• Assets under management: $67.9 billion
• Expense rate: 0.10%
• Top five titles: Microsoft, Apple, Nvidia, Broadcom, Advanced Micro Devices

THE Vanguard Information Technology ETF ranks among the largest funds on this list of outperformers, with assets approaching $70 billion. The ETF covers all areas of the technology industry, down to small and micro caps, although the index it tracks is weighted by market cap.

8. Fidelity MSCI Information Technology Index ETF (FTEC)

• Looking back over 10 years: 20.15%
• Assets under management: $9.80 billion
• Expense rate: 0.084%
• Top five titles: Microsoft, Apple, Nvidia, Broadcom, Advanced Micro Devices

The objective of this ETF is to replicate the performance of the MSCI USA IMI Information Technology 25/50 Index, which is a modified market cap-weighted index capturing all sizes and segments of domestic market companies .

9. iShares Broad Technology Sector ETF (IGM)

• Looking back over 10 years: 19.67%
• Assets under management: $4.95 billion
• Expense rate: 0.41%
• Top five titles: Nvidia, Apple, Microsoft, metaplatforms, Alphabet

The iShares Expanded Tech Sector ETF attempts to mimic the performance of the S&P North American Expeded Technology Sector Index. It is a modified market capitalization-weighted index that provides exposure to all segments of the United States. technology marketfrom discretionary consumer services to communications.

10. iShares Global Technology ETF (IXN)

• Looking back over 10 years: 19.26%
• Assets under management: $5.08 billion
• Expense rate: 0.41%
• Top five titles: Microsoft, Apple, Nvidia, Broadcom, Taiwan Semiconductor Manufacturing Co.

The iShares Global Tech ETF is the only fund on the top-performing list that offers exposure to stocks around the world, although it remains heavy in large-cap U.S. stocks. It invests in sectors ranging from computer software and hardware to information technology and electronics.

FAQs

• What is the best performing ETF of the last 10 years?
  • In terms of pure performance, the best performing ETF over the last 10 years is the VanEck Semiconductor ETF, symbol SMH. The ETF has posted an average annual return of 27.22% per year over the past decade.

• What are the 10 best ETFs?
  • The top 10 ETFs, in terms of assets under management, are:
    • SPDR S&P 500 ETF Trust
    • iShares Core S&P 500 ETF
    • Vanguard S&P 500 ETF
    • Vanguard Total Stock Market ETF
    • Invesco QQQ Trust Series I
    • Vanguard FTSE Developed Markets ETF
    • Vanguard Growth ETF
    • iShares Core MSCI EAFE ETF
    • Vanguard Value ETF
    • iShares Core US Aggregate Bond ETF

• What is the most actively traded ETF?
  • The most actively traded ETF can vary from day to day. However, it is usually the SPDR S&P 500 ETF Trust, symbol TO SPY. This ETF tracks the S&P 500 and was the first-ever exchange-traded fund. It is by far the largest ETF in terms of assets under management, with a whopping $534.82 billion.

Methodology: 10-year returns data is from YCharts and is accurate as of March 31, 2024. All other data is accurate as of June 14, 2024 and is subject to change.

Editorial note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, evaluations or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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