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Top Performing ETFs of the Decade

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US stocks are trading near their record highs, although they have slipped in the past couple of days due to rising geopolitical tensions following the US assassination of an Iranian military leader.

The S&P 500 closed up almost 29% in 2019—its best annual performance since 2013. And it has been a great decade for US stocks. The S&P 500 gained 248%, the Dow was up 243%, while the Nasdaq significantly outperformed with a return of 411%.

The decade started with concerns that the fallout from the financial crisis may continue for years and it ended with the longest stock market rally in history.

US stocks continued to outperform during the decade as the US dollar has gained 23% against a basket of other currencies since 2010, per WSJ, thanks to faster economic growth in the US relative to the rest of the world, and also because US companies are much more profitable.

Growth stocks have significantly outperformed their value peers during the decade, as investors have been chasing growth at any price. Among the sectors, Technology was the best performer and energy was the worst.

The iShares PHLX Semiconductor ETF (SOXX - Free Report) is a modified market cap weighted ETF. Its top holdings include Nvidia (NVDA - Free Report) , Qualcomm (QCOM) and AMD (AMD - Free Report) . The fund is up 457% in the past decade.

The SPDR S&P Biotech ETF (XBI - Free Report) holds biotechnology stocks in almost equal weights. It has gained about 455% since the start of 2010.

The First Trust Dow Jones Internet ETF (FDN - Free Report) holds the largest and most actively traded internet stocks. Amazon (AMZN - Free Report) , Facebook and Netflix (NFLX - Free Report) are among its top holdings.

The iShares U.S. Medical Devices ETF (IHI - Free Report) holds manufacturers and distributors of medical devices. It has returned 418% in the past 10 years.

The Invesco QQQ Trust (QQQ - Free Report) holds 100 of the largest nonfinancial companies listed on the Nasdaq. It is one of the most popular ETFs in the world. Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) are its top holdings. The product has gained 411% in the past decade.

To learn more about these ETFs, please watch the short video above.

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