Learn more: How to consistently choose the best sector ETF Best Performing ETFs of Last 10 Years: U. In comparison, ETFs tracking the S&P 500, such as the Vanguard S&P 500 ETF (VOO), the iShares Core S&P 500 ETF (IVV), and the SPDR S&P 500 ETF (SPY), have each gained 12.9% annualized. They claim the top spot among clean energy and health care ETFs. Medical Devices ETF (IHI) have gained at annualized rates of 19.7% and 17.1%, respectively. The First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) and the iShares U.S. The iShares Semiconductor ETF (SOXX) claims top honors among non-leveraged ETFs with a compound annual return of 22.4%. The ETFs that focus on specific industries in technology, and to a lesser extent, clean energy and health care, have fared well. Best Performing ETFs of Last 10 Years: Sector EquityĪmong non-leveraged ETFs, several in the sector equity category have beaten the broad market. The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL), which seeks daily investment results that correspond to three times the daily performance of the ICE Semiconductor Index, is the best performing ETF of the last ten years with a 39.7% compound annual return. Leveraged equity ETFs made the most of rising stock prices over the past decade. So, what are the best performing ETFs in the last 10 years? Best Performing ETFs of Last 10 Years: Leveraged Equity In this milieu, the best performing ETFs in several categories have outpaced the S&P 500. Following its gradual ascent in 2021, the yield has risen rapidly this year, reaching 2.98% in June. Register to learn more about the year-over-year performance of the AlphaProfit model portfolios since inception.Īccording to FactSet, S&P 500 company earnings have risen 2.2 fold from $101.73 a share to $218.82 a share during the ten years ending on June 30, 2022.Īs interest rates fell through eight of the past 10 years, stock prices rose more than earnings from an increase in the price/earnings ratio.Īccording to Macrotrends, the yield on the 10-year Treasury bond fell from 1.67% in June 2012 to 0.52% in August 2020 during the depths of the pandemic. While S&P 500 company earnings have grown 2.2-fold in the past 10 years, the S&P 500 index has risen more than 2.8-fold as stock valuation metrics have expanded. The annualized rate of return increases to 13.0% with dividends. While low-interest rates favored stocks of growth companies for most of the past ten years, rising rates have recently brought value stocks into favor.Įxcluding dividends, the S&P 500 has risen 2.8-fold implying a 10.8% compound annual return. Disruptions to supply chains caused by COVID and the invasion of Ukraine have added fuel to inflation.Ĭentral banks worldwide have tightened their interest rate policies in response to increasing inflation. Global central banks responded to the COVID pandemic in 2020 with massive asset purchase programs (also known as quantitative easing) and near-zero interest rates.Īfter two years of unprecedented stimulus, inflation has now become the #1 issue for most economies.
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