Which ETF beats S&P 500?
MarketWatch spotlights VanEck Morningstar Wide Moat ETF (MOAT), consistently outperforming the S&P 500 by targeting companies with long-term competitive advantages or "economic moats."
ETF | Ticker | Annualized 5-year return |
---|---|---|
iShares Core S&P 500 ETF | IVV | 15.65% |
SPDR S&P 500 ETF Trust | SPY | 15.52% |
Vanguard S&P 500 ETF | VOO | 14.26% |
Fund | 2023 performance (%) | 5yr performance (%) |
---|---|---|
MS INVF US Growth | 49.29 | 62.08 |
New Capital US Growth | 48.68 | N/A |
T. Rowe Price US Large Cap Growth Equity Fund | 48.64 | 98.92 |
Baillie Gifford Worldwide US Equity Growth | 46.58 | N/A |
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has outperformed S&P by a wide margin. The average 10-year return of Nasdaq 100 over these 15 years was around 9%, while that of S&P 500 was about 5%.
- Rocket Lab USA Inc (NASDAQ:RKLB) ...
- Twist Bioscience Corp (NASDAQ:TWST) ...
- Tecnoglass Inc (NYSE:TGLS) ...
- Paramount Global Class B (NASDAQ:PARA) ...
- SoFi Technologies Inc (NASDAQ:SOFI) ...
- Ulta Beauty Inc (NASDAQ:ULTA) ...
- Pfizer Inc (NYSE:PFE) ...
- Tesla Inc (NASDAQ:TSLA)
The core S&P 500 ETFs listed above—SPY, IVV, VOO and SPLG—represent the four largest funds in the category as measured by net assets and daily trading volume.
The top ETF of 2023 is iShares Expanded Tech Software Sector ETF (IGV), with a YTD return of 355.22%. Technology ETFs outperformed their peers this year, driven by the widespread adoption of AI and expectations of a soft landing in the economy in 2024.
Berkshire has a history of outperforming the S&P 500 during recessions, and performing especially well during bear markets, according to data from Bespoke Investment Group. Since 1980, Berkshire shares have beat the broader market over the course of six recessions by a median of 4.41 percentage points.
VOO - Performance Comparison. In the year-to-date period, SCHD achieves a 0.87% return, which is significantly lower than VOO's 5.46% return. Over the past 10 years, SCHD has underperformed VOO with an annualized return of 11.50%, while VOO has yielded a comparatively higher 12.78% annualized return.
Has anyone outperformed the S&P 500?
Our list of 13 stocks that outperform the S&P 500 every year for the last 5 years includes companies from a diverse range of sectors with the technology sector accounting for the biggest proportion of stocks, followed by the industrials sector. The list includes companies such as DexCom, Inc.
Company | Sector | 5 Year Total Return |
---|---|---|
Palo Alto Networks (PANW) | 🖥️ Information Technology | 412% |
Lam Research (LRCX) | 🖥️ Information Technology | 392% |
Chipotle Mexican Grill (CMG) | 🛍️ Consumer Discretionary | 365% |
Broadcom (AVGO) | 🖥️ Information Technology | 363% |
The best total market index funds by popularity include the Vanguard Total Stock Market Index Admiral Shares (VTSAX), the Schwab Total Stock Market Index Fund (SWTSX), the iShares Russell 3000 (IWVB), and the Wilshire 5000 Index Investment Fund (WFIVX).
Looking ahead to the new year, JPMorgan is making the case that there's still money to be made in these high flyers, naming some of this year's big winners as the best buys for 2024. Amazon (AMZN) and Google (GOOGL) will outperform again, according to JPMorgan analyst Doug Anmuth.
- Coca-Cola. (NASDAQ: KO) ...
- Altria. (NASDAQ: MO) ...
- Amazon.com. (NASDAQ: AMZN) ...
- Celgene. (NASDAQ: CELG) ...
- Apple. (NASDAQ: AAPL) ...
- Alphabet. (NASDAQ:GOOG) ...
- Gilead Sciences. (NASDAQ: GILD) ...
- Microsoft. (NASDAQ: MSFT)
Bank of America strategist Michael Hartnett coined the term "Magnificent 7" stocks for the most dominant tech companies. The group is made up of mega-cap stocks Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA).
ETF | Price | 1 Yr Return |
---|---|---|
Vanguard S&P 500 Index ETF (VFV) | 120.06 | Loading... |
Vanguard S&P 500 Index ETF CAD Hedged (VSP) | 81.96 | Loading... |
iShares Core S&P 500 Index ETF (XUS) | 83.79 | Loading... |
BMO S&P 500 Index ETF (ZSP) | 73.96 | Loading... |
The Bottom Line. Both index mutual funds and ETFs can provide investors with broad, diversified exposure to the stock market, making them good long-term investments suitable for most investors. ETFs may be more accessible and easier to trade for retail investors because they trade like shares of stock on exchanges.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
- iShares Russell Top 200 Growth ETF (NYSE:IWY) Annualized Return Over 10 Years: 16.09% ...
- Invesco QQQ Trust (NASDAQ:QQQ) Annualized Return Over 10 Years: 17.92% ...
- Vanguard Information Technology Index Fund (NYSE:VGT) 10-Year Daily Total Returns: 19.52%
What is the best ETF for long term growth?
ETF | Assets under management | Expense ratio |
---|---|---|
Vanguard Growth ETF (VUG) | $105 billion | 0.04% |
Vanguard Information Technology ETF (VGT) | $60 billion | 0.10% |
Schwab US Dividend Equity ETF (SCHD) | $52 billion | 0.06% |
Vanguard Total Stock Market ETF (VTI) | $348 billion | 0.03% |
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.80B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 12.81%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
Key Points. Warren Buffett is highly regarded for his ability to consistently beat the benchmark S&P 500. Berkshire Hathaway's investing profile has dramatically changed since the turn of the century, however. As a result, growth investors will likely be better served owning this low-cost indexed Vanguard ETF.
Is Berkshire Hathaway Stock A Buy Now? Berkshire Hathaway stock generally lagged the S&P 500 index since late 2017, but managed to handily outperform the benchmark index in 2022. It lagged again in 2023 after giving up some spring and summer gains.
Key Points. Less than 10% of active large-cap fund managers have outperformed the S&P 500 over the last 15 years. The biggest drag on investment returns is unavoidable, but you can minimize it if you're smart.