Back to top

Image: Bigstock

Top Two Sector ETFs of Past Decade Still on High Momentum

Read MoreHide Full Article

In the past decade, we have seen “the king of all bull markets” in Wall Street. The run was the longest ever. Though Wall Street’s record bull run ended on Mar 12, 2020 on COVID-induced selloffs, markets again shrugged off all worries and are hovering around all-time high levels.

Fed’s massive stimulus, record-bottom rates, hopes of another tranche of fiscal stimulus, a divided Congress and the likelihood of a faster-than-expected rollout of coronavirus vaccine have been propelling the space.

SPDR S&P 500 ETF (SPY - Free Report) gained about 267.8% during the past 10 years, SPDR Dow Jones Industrial Average ETF (DIA - Free Report) advanced 235.6% and the tech-heavy Invesco QQQ Trust (QQQ - Free Report) added 527% (as of Dec 7, 2020).

Against this backdrop, we would like to note a few decade-best sector ETFs.


The decade-long cheap money inflows and global economic improvement (before the virus outbreak) made growth stocks and the tech-heavy ETF winners last decade. Rising consumer spending on technology, a 5G boom, expectations of higher smartphone sales, the announcement of the phase-one U.S.-China trade deal and coronavirus-induced social distancing propelled the tech and semiconductor space (read: Semiconductor ETFs Up At Least 40% in 2020: More Gains Ahead).

The sector overall has been thriving on exponential growth in enterprise cloud computing, cyber security, remote communications, video gaming and e-commerce to online payments. With digitization taking the spotlight, we expect the winning momentum to continue.

iShares PHLX Semiconductor ETF (SOXX - Free Report) – Up 663.4% past decade

Invesco Nasdaq Internet ETF (PNQI - Free Report) – Up 532.8% past decade

Vanguard Information Technology ETF (VGT - Free Report) – Up 527.0% past decade


Apart from technology, the healthcare sector is another area that has recorded solid growth in the past decade. Increasing health care spending, solid demand for drugs from emerging economies, a flurry of positive clinical trials, FDA approvals, the rise of genomics, and digital innovation in healthcare have been pushing the space higher.

Also, the U.S. healthcare supply chain is consolidating fast, with deals across the industry ranging from insurers, pharmacies to drug distributors. IPO activities have been even more stellar. COVID-19 has pushed the area a notch higher. Disruptions in the sector and telemedicine have become popular in 2020. We expect the solid momentum in the sector to rule in the coming decade.  

SPDR S&P Biotech ETF (XBI - Free Report) – Up 593.4% past decade

Invesco S&P SmallCap Health Care ETF (PSCH - Free Report) – Up 505.9% past decade

iShares U.S. Medical Devices ETF (IHI - Free Report) – Up 493.2% past decade

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>