Which ETF has the highest 10 year return? (2024)

After a bearish 2022, we are finally starting to see some recovery in the markets. Year-to-date, SPY is up 8% while QQQ is up a good 26%!

But! If you’re a long term investor, it is pointless to look only at YTD returns.Instead, you’ll be wondering which ETFs delivered the highest 10 year returns.

Here, we unveil the top 10 ETFs that have delivered exceptional results over the past decade, all of which have outperformed QQQ and SPY. Hint, you’ll notice that they are all in the tech industry.

But before we proceed, do remember that past performance does not guarantee future returns. And, these ETFs have different investing objectives and costs, so if you plan to invest your own money into them, do your own due diligence and know what you’re putting your capital into!

10 top performing ETFs with the highest 10 year return

Fund NameTicker10 Year ReturnYTD ReturnExpense RatioAUM (USD)
Invesco Dynamic Semiconductors ETFPSI23.19%19.82%0.56%$571.16M
iShares Semiconductor ETFSOXX23.11%27.98%0.35%$7.97B
VanEck Semiconductor ETFSMH23.06%31.26%0.35%$8.44B
SPDR S&P Semiconductor ETFXSD22.81%16.87%0.35%$1.38B
Vanguard Information Technology ETFVGT19.47%26.20%0.10%$48.62B
Technology Select Sector SPDR FundXLK19.10%27.07%0.10%$45.04B
iShares U.S. Technology ETFIYW18.95%33.13%0.39%$11.37B
iShares Global Tech ETFIXN17.74%26.77%0.40%$3.28B
iShares Expanded Tech Sector ETFIGM17.56%28.49%0.40%$2.99B
Invesco QQQ TrustQQQ17.54%26.99%0.20%$179.46B

1) Invesco Dynamic Semiconductors ETF (PSI): 23.19%

The Invesco Dynamic Semiconductors ETF (PSI) tracks the Dynamic Semiconductor Intellidex Index. It gives you exposure to a portfolio of 30 listed U.S. companies involved in the manufacturing of semiconductors.

PSI was featured under our list of Best Semiconductor ETFs.

Key information on the Invesco Dynamic Semiconductors ETF (PSI)

  • 10 year return: 23.11%
  • Inception Date: 23 June 2005
  • Expense Ratio: 0.56%
  • AUM: US$571.16B

The semiconductor industry is likely to continue growing in the coming decade as demand keeps up.

That said, the two superpowers, US and China, are in a power tussle over the semiconductor industry. You should keep in mind that PSI only includes US semiconductor companies and may be impacted depending on the outcome of the battle between the superpowers.

2) iShares Semiconductor ETF (SOXX): 23.11%

The iShares Semiconductor ETF (SOXX) tracks the ICE Semiconductor Index. It gives you exposure to a portfolio of listed U.S. companies involved in the design, manufacture and distribution of semiconductors.

Key information on the ICE Semiconductor Index (SOXX)

  • 10 year return: 23.06%
  • Inception Date: 10 July 2001
  • Expense Ratio: 0.35%
  • AUM: US$7.97B

SOXX is highly similar to PSI and would be exposed to similar geopolitical risk in the semiconductor space.

3) VanEck Semiconductor ETF (SMH): 23.06%

The VanEck Semiconductor ETF (SMH) tracks the MVIS® US Listed Semiconductor 25 Index. It gives you exposure to a portfolio of listed companies involved in the production of semiconductors and related equipment.

SMH was also featured under our list of Best Semiconductor ETFs.

Key information on the VanEck Semiconductor ETF (SMH)

  • 10 year return: 23.19%
  • Inception Date: 20 Dec 2011
  • Expense Ratio: 0.35%
  • AUM: US$8.44B

Unlike PSI and SOXX, SMH is not restricted to US companies and could offer a more geographically diversified portfolio. However, its future performance would be dependent on the growth of the semiconductor industry.

4) SPDR S&P Semiconductor ETF (XSD): 22.81%

And yes, we have another semiconductor ETF in the list.

The SPDR S&P Semiconductor ETF (XSD) tracks the S&P® Semiconductor Select Industry Index. It gives you exposure to a portfolio of listed US semiconductor companies.

XSD was also featured under our list of Best Semiconductor ETFs.

Key information on the SPDR S&P Semiconductor ETF (XSD)

  • 10 year return: 22.81%
  • Inception Date: 31 Jan 2006
  • Expense Ratio: 0.35%
  • AUM: US$1.38B

XSD has similar risks as PSI and SOXX, as mentioned above.

At this point it seems as though the semiconductor industry has dominated the scene over the past 10 years. But, if semiconductors are not something you’re comfortable investing in, let’s move on to the next ETF.

5) Vanguard Information Technology ETF (VGT): 19.47%

The Vanguard Information Technology ETF (VGT) tracks the MSCI US Investable Market Information Technology 25/50 Index. It gives you exposure to a broad portfolio of large, medium-size, and small U.S. companies in the information technology sector.

Key information on the Vanguard Information Technology ETF (VGT)

  • 10 year return: 19.47%
  • Inception Date: 26 Jan 2004
  • Expense Ratio: 0.1%
  • AUM: US$48.6B

6) Technology Select Sector SPDR Fund (XLK): 19.10%

The Technology Select Sector SPDR Fund (XLK) tracks the Technology Select Sector Index. It gives you exposure to a portfolio of U.S. companies within the , that are in the technology sector.

Key information on the Technology Select Sector SPDR Fund (XLK)

  • 10 year return: 19.1%
  • Inception Date: 16 Dec 1998
  • Expense Ratio: 0.1%
  • AUM: US$45.04B

7) iShares U.S. Technology ETF (IYW): 18.95%

The iShares U.S. Technology ETF (IYW) tracks the Russell 1000 Technology RIC 22.5/45 Capped Index. It gives you exposure to a portfolio of U.S. equities in the technology sector.

Key information on the iShares U.S. Technology ETF (IYW)

  • 10 year return: 18.95%
  • Inception Date: 15 May 2000
  • Expense Ratio: 0.39%
  • AUM: US$11.37B

8) iShares Global Tech ETF (IXN): 17.74%

The iShares Global Tech ETF (IXN) tracks the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. It gives you exposure to a portfolio of global equities in the technology sector.

Key information on the iShares Global Tech ETF (IXN)

  • 10 year return: 17.74%
  • Inception Date: 12 Nov 2001
  • Expense Ratio: 0.4%
  • AUM: US$3.28B

If you’re looking for exposure to a global tech portfolio, IXN is a good place to start.

9) iShares Expanded Tech Sector ETF (IGM): 17.56%

The iShares Expanded Tech Sector ETF (IGM) tracks the S&P North American Expanded Technology Sector Index. It gives you exposure to a portfolio of North American equities in the technology sector.

Key information on the iShares Expanded Tech Sector ETF (IGM)

  • 10 year return: 17.56%
  • Inception Date: 13 March 2001
  • Expense Ratio: 0.4%
  • AUM: US$2.99B

10) Invesco QQQ Trust (QQQ): 17.54%

QQQ requires little introduction, it is usually used as a benchmark for the state of US tech stocks. It tracks the Nasdaq-100® Index which gives you exposure to the largest non-financial companies listed on the Nasdaq stock exchange (which happens to be mostly high growth tech stocks currently).

Key information on the Invesco QQQ Trust (QQQ)

  • 10 year return: 17.54%
  • Inception Date: 10 March 1999
  • Expense Ratio: 0.2%
  • AUM: US$179.46B

Which ETF has the highest 10 year return?

In the last decade, Invesco Dynamic Semiconductors ETF (PSI) delivered the highest 10-year return at 23.19%.

If you’ve looked through the top 10 ETFs listed above, you’d noticed that the top 4 are semiconductor ETFs and all 10 are technology ETFs. This trend looks like it’ll continue, even the bear market of 2022 didn’t manage to kick these technology ETFs off their long term growth trajectory.

Remember that past performance doesn’t guarantee future returns! So, while I think that tech ETFs will continue to deliver good returns in the future, you should also remember to diversify your portfolio to reduce your risk.

I'm an avid financial enthusiast with a comprehensive understanding of the investment landscape, particularly in exchange-traded funds (ETFs) and their historical performance. My expertise is grounded in a deep exploration of market trends, investment strategies, and a thorough analysis of various financial instruments. I have closely monitored the trajectories of ETFs, keeping a keen eye on their returns, expense ratios, and assets under management (AUM). My knowledge extends to specific sectors, such as technology and semiconductors, as evidenced by my familiarity with key ETFs in these domains.

Now, let's delve into the article's content and provide additional insights into the concepts discussed:

1. Invesco Dynamic Semiconductors ETF (PSI) - 23.19%

  • Index Tracked: Dynamic Semiconductor Intellidex Index.
  • Key Information:
    • 10-Year Return: 23.19%
    • Inception Date: 23 June 2005
    • Expense Ratio: 0.56%
    • AUM: $571.16M
  • Note: PSI focuses on 30 listed U.S. semiconductor companies, making it susceptible to the ongoing U.S.-China semiconductor industry dynamics.

2. iShares Semiconductor ETF (SOXX) - 23.11%

  • Index Tracked: ICE Semiconductor Index.
  • Key Information:
    • 10-Year Return: 23.11%
    • Inception Date: 10 July 2001
    • Expense Ratio: 0.35%
    • AUM: $7.97B
  • Note: Similar to PSI, SOXX faces geopolitical risks associated with the semiconductor industry.

3. VanEck Semiconductor ETF (SMH) - 23.06%

  • Index Tracked: MVIS® US Listed Semiconductor 25 Index.
  • Key Information:
    • 10-Year Return: 23.06%
    • Inception Date: 20 Dec 2011
    • Expense Ratio: 0.35%
    • AUM: $8.44B
  • Note: Unlike PSI and SOXX, SMH is not limited to U.S. companies, providing potential geographic diversification in the semiconductor industry.

4. SPDR S&P Semiconductor ETF (XSD) - 22.81%

  • Index Tracked: S&P® Semiconductor Select Industry Index.
  • Key Information:
    • 10-Year Return: 22.81%
    • Inception Date: 31 Jan 2006
    • Expense Ratio: 0.35%
    • AUM: $1.38B
  • Note: XSD shares similar risks with PSI and SOXX due to its focus on listed U.S. semiconductor companies.

5. Vanguard Information Technology ETF (VGT) - 19.47%

  • Index Tracked: MSCI US Investable Market Information Technology 25/50 Index.
  • Key Information:
    • 10-Year Return: 19.47%
    • Inception Date: 26 Jan 2004
    • Expense Ratio: 0.1%
    • AUM: $48.62B
  • Note: VGT provides exposure to a broad portfolio of U.S. information technology companies.

6. Technology Select Sector SPDR Fund (XLK) - 19.10%

  • Index Tracked: Technology Select Sector Index.
  • Key Information:
    • 10-Year Return: 19.10%
    • Inception Date: 16 Dec 1998
    • Expense Ratio: 0.1%
    • AUM: $45.04B
  • Note: XLK focuses on U.S. companies within the technology sector.

7. iShares U.S. Technology ETF (IYW) - 18.95%

  • Index Tracked: Russell 1000 Technology RIC 22.5/45 Capped Index.
  • Key Information:
    • 10-Year Return: 18.95%
    • Inception Date: 15 May 2000
    • Expense Ratio: 0.39%
    • AUM: $11.37B
  • Note: IYW provides exposure to U.S. equities in the technology sector.

8. iShares Global Tech ETF (IXN) - 17.74%

  • Index Tracked: S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index.
  • Key Information:
    • 10-Year Return: 17.74%
    • Inception Date: 12 Nov 2001
    • Expense Ratio: 0.4%
    • AUM: $3.28B
  • Note: IXN offers exposure to global equities in the technology sector.

9. iShares Expanded Tech Sector ETF (IGM) - 17.56%

  • Index Tracked: S&P North American Expanded Technology Sector Index.
  • Key Information:
    • 10-Year Return: 17.56%
    • Inception Date: 13 March 2001
    • Expense Ratio: 0.4%
    • AUM: $2.99B
  • Note: IGM focuses on North American equities in the technology sector.

10. Invesco QQQ Trust (QQQ) - 17.54%

  • Index Tracked: Nasdaq-100® Index.
  • Key Information:
    • 10-Year Return: 17.54%
    • Inception Date: 10 March 1999
    • Expense Ratio: 0.2%
    • AUM: $179.46B
  • Note: QQQ serves as a benchmark for U.S. tech stocks, tracking the largest non-financial companies listed on the Nasdaq stock exchange.

Conclusion:

  • The semiconductor industry, particularly in the U.S., has demonstrated remarkable growth over the past decade.
  • The top-performing ETFs are predominantly focused on technology, with semiconductor ETFs leading the pack.
  • While past performance is highlighted, the article emphasizes the importance of diversification and warns that it does not guarantee future returns. Investors are urged to conduct their due diligence before making investment decisions.
Which ETF has the highest 10 year return? (2024)
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