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77% Return: 5 ETFs That Beat the S&P 500

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77% Return: 5 ETFs That Beat the S&P 500

One of the thematic ETFs focuses on the cyber security sector. Getty Images/ valiantsin suprunovich, cagkansayin, malerapaso, travellaggio, bamlou, sittipong phokawattana

Business Insider picked five thematic ETFs that beat the S&P 500 over at least a year. The best of them recorded a performance of around 77 percent over a year. For comparison: the iShares Core S&P 500 ETF comes to around 25 percent. But: More returns also mean more risk. The volatility of the selected index funds is significantly higher than the S&P 500.

“Never bet against America” is one of Warren Buffett’s most famous quotes. The investor legend could not have been entirely wrong, as the USA actually now accounts for almost 70 percent of some major indices such as the MSCI World. So if you like Warren Buffett and would rather not bet against the USA, you could add the S&P 500 to your portfolio, which includes the shares of 500 of the largest listed US companies.

There are several products on the market that track the index. For example, the iShares Core S&P 500 ETF, with a fund volume of $76,222.19 million. This comes over a year on a Performance of 25.3 percent and thus narrowly beats the iShares Core MSCI World ETF, which achieved 21 percent over the same period.


But for those who are more willing to take risks, the ETF universe offers even more options. One of them is to focus on specific topics. These so-called theme ETFs usually focus their investment on a specific industry. The hope behind it: Benefit from a long-term trend and a growth industry.

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The problem: Since the products only focus on a specific area, they often have little or no diversification. This means that the investments are not spread across different industries as with other products, but rather focus on one topic. Sometimes a new idea or innovation can be enough and a long-term trend suddenly turns out to be short-term. A possible consequence: the ETF rushes into the basement. Therefore, when it comes to ETFs that invest thematically, investors should always question whether they really believe in the trend or the industry in the long term.

We’ve picked five ETFs that have a US focus and focus on a specific industry. All index funds outperform the iShares Core S&P 500 ETF for at least one year. The best among them emerges a performance of 77 percent over a year.

However, what investors should definitely pay attention to: More return also means more riskwhy the Volatility is significantly higher for all five ETFs than an S&P 500 ETF. It’s also always worth taking a look at feesbecause these are often higher, especially with theme ETFs.

The data used comes from “Finanzen.net” and “Fund Web”. All ETFs focus on a specific industry or theme. Care was taken to ensure that the index funds beat the S&P 500 for at least one year. This is not a comprehensive ranking. Data accessed on March 6, 2024.

These five thematic ETFs beat the S&P 500 over a year

Platz 5: Xtrackers Future Mobility ETF (ISIN: IE00BGV5VR99)


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