Ever wonder which ETFs do the best job at beating the benchmark index? This list is a good place to start.
It’s been a landmark year for the S&P 500, which has continued its impressive growth by reaching 6,000 for the first time in mid-November, albeit pulling back to $5,827.04 as of the market close on Jan. 10. However, for investors looking to secure the strongest returns on Wall Street, there are several exchange-traded funds, or ETFs, that have consistently outperformed the index.
Having risen by an annualized 12.3% over the past five years, there’s little doubting the stability of the 500 or so stocks tracked by the S&P. Despite this, ETFs sometimes have a better opportunity for growth by focusing on specific sectors or industries.
Many modern ETFs have also been compiled by some of Wall Street’s most intelligent and resourceful fund managers. Investment giants like BlackRock, Vanguard, Invesco, Fidelity and ProShares have all proven themselves with high historical outperformance combined with competitive management fees.
But which ETFs have consistently outperformed the S&P 500 in the past five years? While there’s no guarantee that these funds will continue to win, especially given tech’s outsized influence lately, let’s take a deeper look at some ETFs that have beaten the benchmark:
| ETF | 5-Year Return* | 3-Year Return* | 1-Year Return* |
| Invesco S&P 500 Momentum ETF (ticker: SPMO) | 19.1% | 16.0% | 44.6% |
| VanEck Semiconductor ETF (SMH) | 29.0% | 19.3% | 43.8% |
| Grayscale Bitcoin Trust ETF (GBTC) | 54.1% | 40.3% | 105.8% |
| Invesco QQQ Trust (QQQ) | 19.1% | 10.8% | 24.9% |
| Roundhill Magnificent Seven ETF (MAGS) | N/A | N/A | 61.8% |
| S&P 500 | 12.3% | 7.7% | 21.8% |
*By market price, including reinvested dividends, as of Jan. 10. Returns over one year are annualized.
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