ETFs
ETFs that have beaten the S&P 500 for five years and are ahead in 2024
Six exchange-traded funds have outperformed the S&P 500 every year over the past five years, according to CNBC Pro analysis. Four U.S.-listed ETFs, a pan-European ETF managed by JPMorgan and a Taiwan-listed ETF have posted gains above the U.S. benchmark every year since 2019, according to analysis of FactSet data. In 2022, when the S&P 500 fell almost 20%, the six ETFs each had a smaller loss. Index trackers including the S&P 1500 Composite Stock Market ETF, Goldman Sachs ActiveBeta US Large Cap Equity, First Trust RBA American Industrial Renaissance ETF and Invesco S&P 500 Quality ETF are the US funds that beat the S&P 500 during the period. period of five years. The JPMorgan US Research Enhanced Index Equity UCITS ETF, listed in the UK, Italy, Germany and Switzerland, is the only actively managed fund to have outperformed over the past five years and is also ahead in 2024. The Sinopac TAIEX ETF, denominated in Taiwan dollars, also outperformed the S&P 500 over the same period in local currency. The six funds were among 12,700 ETFs selected worldwide by CNBC Pro. First Trust RBA American Industrial Renaissance Among the six ETFs, the First Trust RBA American Industrial Renaissance ETF (ticker: AIRR) performed the best during the period. It has had a cumulative total return of 178% over the past five years, compared to 112% for the S&P 500. The fund tracks the RBA American Industrial Renaissance Index, which provides investors with exposure to U.S. small- and mid-cap sectors. industrial and community banks. It only includes stocks in the Russell 2500 index. First Trust says only companies that derive at least three-quarters of their revenue from the United States are included. Stocks are also screened for companies with a “positive average consensus estimate for 12-month forward earnings.”