10 Best-Performing ETFs of the Last 10 Years

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Exchange-traded funds are popular because they allow investors to own an entire portfolio in a single instrument that they can buy or sell at any time on the stock exchange. But even though ETFs are often frequently traded, 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 provided returns that are at least 77% greater than the average annual return of the S&P 500 over the past decade, at 10.87% as of June 14, with the top ETFs nearly tripling that return.

ETF 10-Year Return
VanEck Semiconductor ETF (SMH) 27.22%
iShares Semiconductor ETF (SOXX) 25.33%
Invesco Semiconductors ETF (PSI) 24.08%
SPDR S&P Semiconductor ETF (XSD) 21.67%
The Technology Select Sector SPDR Fund (XLK) 20.68%
iShares U.S. Technology ETF (IYW) 20.44%
Vanguard Information Technology ETF (VGT) 20.38%
Fidelity MSCI Information Technology Index ETF (FTEC) 20.15%
iShares Expanded Tech Sector ETF (IGM) 19.67%
iShares Global Tech ETF (IXN) 19.26%
Source: YCharts. Data is accurate as of March 31, 2024.

Note that each of the best-performing ETFs listed below is in the technology industry, which is notoriously volatile and may go in and out of favor. In other words, while these ETFs have done an admirable job of posting outsized returns for a significant period of time, past performance is not a guarantee of future results. There’s no certainty that these ETFs will be among the best ETFs for long-term performance going forward.

1. VanEck Semiconductor ETF (SMH)

  • 10-year return: 27.22%
  • Assets under management: $23.42 billion
  • Expense ratio: 0.35%
  • Top five holdings: Nvidia, Taiwan Semiconductor Manufacturing Co., Broadcom, Qualcomm, Micron Technology

The VanEck Semiconductor ETF, SMH, is an index tracker following the 25 largest U.S.-listed semiconductor companies. The ETF, as with the underlying fund, is market-cap weighted.

2. iShares Semiconductor ETF (SOXX)

  • 10-year return: 25.33% 
  • Assets under management: $15.93 billion
  • Expense ratio: 0.35%
  • Top five holdings: 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 that is market-cap weighted. It provides exposure to American companies involved in the manufacturing, design and distribution of semiconductors.

3. Invesco Semiconductors ETF (PSI)

  • 10-year return: 24.08%
  • Assets under management: $907.6 million
  • Expense ratio: 0.57%
  • Top five holdings: Broadcom, Nvidia, Applied Materials, Lam Research, Micron Technology

The Invesco Semiconductors ETF tracks an index of 30 U.S. semiconductor companies, which are primarily involved in manufacturing. The underlying index, like the ETF itself, is rebalanced and reconstituted every quarter. The index PSI uses includes more smaller growth companies, avoiding the market-cap-heavy weighting of some of its competitors.

4. SPDR S&P Semiconductor ETF (XSD)

  • 10-year return: 21.67%
  • Assets under management: $1.56 billion
  • Expense ratio: 0.35%
  • Top five holdings: First Solar, Nvidia, Micron Technology, Cirrus Logic, Impinj

Those looking for an equally weighted semiconductor index ETF might consider XSD, which includes companies across a range of market capitalizations in the semi, technology and semi equipment industries.

5. The Technology Select Sector SPDR Fund (XLK)

  • 10-year return: 20.68%
  • Assets under management: $71.24 billion
  • Expense ratio: 0.09%
  • Top five holdings: Apple, Microsoft, Nvidia, Broadcom, Advanced Micro Devices

The Technology Select Sector SPDR fund is one of the biggest and most well-known index ETFs. It is heavily weighted toward its top 10 holdings, which comprise more than 68% of its total portfolio.

6. iShares US Technology ETF (IYW)

  • 10-year return: 20.44%
  • Assets under management: $18.81 billion
  • Expense ratio: 0.40%
  • Top five holdings: Microsoft, Nvidia, Apple, Broadcom, Meta Platforms

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

7. Vanguard Information Technology ETF (VGT)

  • 10-year return: 20.38%
  • Assets under management: $67.9 billion
  • Expense ratio: 0.10%
  • Top five holdings: Microsoft, Apple, Nvidia, Broadcom, Advanced Micro Devices

The Vanguard Information Technology ETF ranks as one of the biggest funds on this list of outperformers, with assets approaching $70 billion. The ETF covers all areas of the tech industry, down to small- and micro-caps, although the index it tracks is market-cap weighted.

8. Fidelity MSCI Information Technology Index ETF (FTEC)

  • 10-year return: 20.15%
  • Assets under management: $9.80 billion 
  • Expense ratio: 0.084%
  • Top five holdings: 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 companies in the domestic market.

9. iShares Expanded Tech Sector ETF (IGM)

  • 10-year return: 19.67%
  • Assets under management: $4.95 billion
  • Expense ratio: 0.41%
  • Top five holdings: Nvidia, Apple, Microsoft, Meta Platforms, Alphabet

The iShares Expanded Tech Sector ETF attempts to mimic the performance of the S&P North American Expanded Technology Sector Index. This is a modified market-cap weighted index that provides exposure to all segments of the U.S. technology market, from consumer discretionary services to communications.

10. iShares Global Tech ETF (IXN)

  • 10-year return: 19.26%
  • Assets under management: $5.08 billion
  • Expense ratio: 0.41%
  • Top five holdings: Microsoft, Apple, Nvidia, Broadcom, Taiwan Semiconductor Manufacturing Co.

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

FAQ

  • What is the best-performing ETF over the past 10 years?
    • In terms of pure performance, the best-performing ETF over the past 10 years is the VanEck Semiconductor ETF, symbol SMH. The ETF posted an average annual return of 27.22% per year over the past decade.
  • What are the top 10 ETFs?
    • The top 10 ETFs, in terms of assets under management, are as follows:
      • 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 U.S. Aggregate Bond ETF
  • What is the most actively traded ETF?
    • The most actively traded ETF can vary on a day-to-day basis. However, it's typically the SPDR S&P 500 ETF Trust, symbol SPY. This ETF tracks the S&P 500 and was the very first exchange-traded fund. It's by far the largest ETF in terms of assets under management, at a whopping $534.82 billion.

Methodology: Data on 10-year returns was sourced 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, ratings 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.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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