Best performing ETFs over the last decade have rewarded patient investors with extraordinary returns that far surpassed the broader market. Between February 2016 and February 2026, the top semiconductor and technology ETFs delivered annualized returns of 20% to nearly 28%, turning a $10,000 investment into $50,000 or more. If you've been searching for the best performing ETFs of the last 10 years, this comprehensive guide ranks every top fund by real total return data, breaks down expense ratios and assets under management, and shows you exactly how to track them in Excel using MarketXLS.
Whether you're building a long-term portfolio or researching which sectors drove the market's biggest gains, understanding these best performing ETFs gives you a roadmap for smarter investing decisions. You can explore any fund in detail using our ETF Research Center or test allocations with the Portfolio Builder.
Disclaimer: This article is for informational purposes only and is not financial advice. Past performance is not a guarantee of future results. The economic and market conditions that propelled these funds may not repeat. Always conduct your own research and consider consulting a financial advisor.
Best Performing ETFs: The Complete Comparison Table
Before diving into the individual analysis of each fund, here is a side-by-side comparison of the best performing ETFs ranked by 10-year annualized total return (February 2016 – February 2026). All return figures are calculated from adjusted close prices including dividend reinvestment. Current data as of February 13, 2026.
| Rank | ETF | Ticker | 10-Year CAGR | Expense Ratio | AUM | Dividend Yield | Sector Focus |
|---|---|---|---|---|---|---|---|
| 1 | VanEck Semiconductor ETF | SMH | 27.7% | 0.35% | $46.6B | 0.27% | Semiconductors |
| 2 | iShares Semiconductor ETF | SOXX | 24.8% | 0.34% | $22.6B | 0.49% | Semiconductors |
| 3 | Vanguard Information Technology ETF | VGT | 21.8% | 0.09% | $112.9B | 0.42% | Technology |
| 4 | Technology Select Sector SPDR | XLK | 20.9% | 0.08% | $89.8B | 0.56% | Technology |
| 5 | Invesco QQQ Trust | QQQ | 19.1% | 0.20% | $399.4B | 0.46% | Large-Cap Growth / Tech |
| 6 | Vanguard Growth ETF | VUG | 16.9% | 0.03% | $198.9B | 0.44% | Large-Cap Growth |
| 7 | iShares S&P 500 Growth ETF | IVW | 16.0% | 0.18% | $50B | 0.40% | S&P 500 Growth |
| 8 | Vanguard Consumer Discretionary ETF | VCR | 14.4% | 0.09% | $6.2B | 0.76% | Consumer Discretionary |
| 9 | Schwab U.S. Dividend Equity ETF | SCHD | 11.6% | 0.06% | $84.5B | 3.31% | Dividend Growth |
| 10 | Health Care Select Sector SPDR | XLV | 9.9% | 0.08% | $41.4B | 1.57% | Healthcare |
These best performing ETFs share a common thread: heavy exposure to the innovation economy. Let's examine each one in detail.
Best Performing ETFs #1: VanEck Semiconductor ETF (SMH) — 27.7% CAGR
The undisputed champion of the last decade, SMH delivered a 27.7% compound annual growth rate over 10 years. A $10,000 investment in February 2016 would have grown to roughly $115,000 by February 2026 — an extraordinary result that more than doubled the S&P 500's performance over the same period.
Why SMH Topped the Rankings
SMH tracks the MVIS US Listed Semiconductor 25 Index, holding the 25 largest and most liquid semiconductor companies. The key to SMH's outperformance over its rival SOXX lies in its market-cap weighting approach, which gives heavier concentration to the largest names. NVIDIA alone has at times represented over 20% of SMH's total assets, and NVIDIA's stock price surged more than 2,000% from its 2022 lows to its 2024 highs thanks to the AI revolution. That concentration was a massive tailwind.
Current Fund Snapshot
As of February 13, 2026, SMH trades at $407.72 with $46.6 billion in assets under management. The fund holds just 26 stocks with an expense ratio of 0.35% and a dividend yield of 0.27%. The P/E ratio sits at 43.6, reflecting the premium investors pay for semiconductor growth.
Risk Considerations
The same concentration that powered SMH's outsized returns also creates significant volatility. The semiconductor cycle is notoriously boom-and-bust, and the fund experienced drawdowns of 30% or more during the 2022 bear market before roaring back. With a beta of 1.54, SMH moves significantly more than the broader market in both directions.
Tracking SMH in MarketXLS
You can monitor SMH in real time using MarketXLS formulas directly in Excel:
- Current price:
=Last("SMH")or=QM_Last("SMH") - Historical data:
=QM_GetHistory("SMH")— pulls historical price data for charting and analysis - Dividend yield:
=DividendYield("SMH")— currently returning approximately 0.27% - Technical analysis:
=SimpleMovingAverage("SMH", 200)— calculate the 200-day moving average to assess long-term trend direction
These formulas let you build a live dashboard in Excel that updates with real market data. Get started with MarketXLS to access all of these functions.
Best Performing ETFs #2: iShares Semiconductor ETF (SOXX) — 24.8% CAGR
SOXX delivered a 24.8% compound annual growth rate over the past decade — a phenomenal return that turned a $10,000 investment in February 2016 into roughly $92,000 by February 2026. While it trailed SMH's 27.7%, SOXX offers a more balanced approach to semiconductor investing.
How SOXX Differs from SMH
SOXX tracks the ICE Semiconductor Index with a modified equal-weight methodology across approximately 34 holdings. This means top holdings like NVIDIA carry roughly 8-10% weight in SOXX, compared to 20%+ in SMH. The result is broader diversification across the semiconductor supply chain — from chip designers like NVIDIA and AMD to equipment makers like Applied Materials and Lam Research.
This more balanced approach actually protected SOXX investors during periods when individual mega-cap semiconductor stocks declined, though it also meant less exposure to NVIDIA's historic AI-driven rally.
Current Fund Snapshot
SOXX trades at $354.66 with $22.6 billion in AUM. It carries a 0.34% expense ratio, a 0.49% dividend yield, and holds 34 stocks. Like SMH, it has a beta of 1.54 and a P/E ratio of 45.8.
The AI Supercycle Thesis
Both semiconductor ETFs benefited enormously from the AI revolution that began accelerating in 2023. The insatiable demand for high-performance GPUs and AI accelerators sent NVIDIA, AMD, and Broadcom to record valuations. Unlike previous semiconductor cycles driven by a single end market, the current cycle is powered by simultaneous demand from AI training, data centers, automotive, 5G, and cloud computing.
MarketXLS Analysis
- Current price:
=Last("SOXX")— currently $354.66 - Historical data:
=QM_GetHistory("SOXX")— download historical prices for backtesting - Dividend yield:
=DividendYield("SOXX")— approximately 0.49% - 200-day SMA:
=SimpleMovingAverage("SOXX", 200)— key trend indicator
Best Performing ETFs #3: Vanguard Information Technology ETF (VGT) — 21.8% CAGR
VGT represents the gold standard for broad technology sector exposure, delivering a 21.8% annualized return over the last decade at a remarkably low expense ratio of just 0.09%. A $10,000 investment grew to approximately $71,600.
Pure-Play Technology at Rock-Bottom Cost
Unlike QQQ, which holds non-tech companies like PepsiCo, Costco, and Starbucks, VGT is a pure technology sector fund. It tracks the MSCI US Investable Market Information Technology 25/50 Index, holding approximately 325 technology companies ranging from mega-caps like Apple and Microsoft down to small-cap software firms.
This broader diversification within technology has historically provided slightly lower volatility than the semiconductor-focused funds while still capturing the sector's powerful long-term growth trend. The 0.09% expense ratio means you keep $9,991 of every $10,000 invested working for you each year.
Current Fund Snapshot
VGT trades at $730.80 with $112.9 billion in assets under management — making it one of the largest sector ETFs in existence. The dividend yield stands at 0.42%, and the fund's P/E ratio is 38.3, slightly lower than the semiconductor funds.
VGT vs. QQQ: Which Is Better?
This is one of the most common questions among growth investors. VGT has historically outperformed QQQ over the last decade (21.8% vs. 19.1% CAGR) because it excludes non-tech companies that dilute returns when technology is leading. However, QQQ's inclusion of companies like Amazon (classified as consumer discretionary, not tech) and Tesla has occasionally provided diversification benefits.
For pure technology exposure at the lowest cost, VGT wins. For broader large-cap growth exposure, QQQ may be preferable. VGT also charges 0.09% vs. QQQ's 0.20%.
Analyzing VGT with MarketXLS
- Current price:
=Last("VGT")— currently $730.80 - Dividend yield:
=DividendYield("VGT")— VGT pays a modest 0.42% yield from its tech holdings - Historical data:
=QM_GetHistory("VGT")— analyze multi-year performance trends - 200-day moving average:
=SimpleMovingAverage("VGT", 200)— identify whether the fund is in an uptrend or downtrend
Visit the MarketXLS ETF page for VGT to see detailed fund analysis and real-time data.
Best Performing ETFs #4: Technology Select Sector SPDR (XLK) — 20.9% CAGR
XLK delivered a 20.9% annualized return over the last decade, making it another standout among the best performing ETFs. With an expense ratio of just 0.08%, it's the cheapest way to access the technology sector on this list.
S&P 500 Technology Exposure
XLK tracks the Technology Select Sector Index, which includes only the technology companies within the S&P 500. With approximately 74 holdings, it sits between VGT's 325-stock breadth and SMH's 26-stock concentration. The result is a focused portfolio that rises and falls with the fortunes of Apple, Microsoft, and NVIDIA.
Current Fund Snapshot
XLK trades at $139.56 with $89.8 billion in AUM. The dividend yield is 0.56% — the highest among the pure tech funds on this list — and the expense ratio of 0.08% makes it the cheapest technology ETF available.
The Reclassification Impact
One notable event during the decade was the GICS sector reclassification. Companies like Meta (Facebook) and Alphabet (Google) were moved out of the technology sector into the communication services sector. This meant XLK and VGT no longer held these names, which impacted relative performance compared to QQQ, which continued to hold them.
Understanding these index construction differences is crucial when selecting among the best performing ETFs, as the same "technology" label can mean very different portfolios depending on the fund.
Tracking XLK
- Current price:
=QM_Last("XLK")— currently $139.56 - Historical prices:
=QM_GetHistory("XLK") - Trend analysis:
=SimpleMovingAverage("XLK", 50)— short-term trend direction
Best Performing ETFs #5: Invesco QQQ Trust (QQQ) — 19.1% CAGR
Perhaps the most well-known growth ETF in the world, QQQ delivered a 19.1% annualized return over the last decade. With nearly $400 billion in assets under management, it is one of the largest and most traded ETFs on the planet.
The NASDAQ-100 Powerhouse
QQQ tracks the NASDAQ-100 Index, which comprises the 100 largest non-financial companies listed on the Nasdaq stock exchange. This creates a portfolio heavily tilted toward technology, but also including companies from healthcare, consumer discretionary, and communication services. The "Magnificent Seven" stocks — Apple, Microsoft, Amazon, Alphabet, Meta, NVIDIA, and Tesla — have historically dominated the fund's performance.
Current Fund Snapshot
QQQ trades at $601.92 with a staggering $399.4 billion in AUM. The expense ratio is 0.20%, the dividend yield is 0.46%, and the P/E ratio sits at 32.1. With 104 holdings, it offers more diversification than the semiconductor funds but less than VGT's 325 stocks.
Liquidity and Options Market
QQQ's enormous trading volume (over 69 million shares daily) makes it one of the most liquid securities in the world. It also has one of the most active options markets, making it a favorite among both institutional investors and retail traders. If you're interested in options strategies built around QQQ, MarketXLS offers powerful options analysis tools.
QQQ as a Core Holding
Many investors use QQQ as a core portfolio holding, complementing it with value or international funds for diversification. Over the last decade, this strategy has been exceptionally rewarding, though it does create significant concentration in U.S. large-cap growth stocks.
Monitoring QQQ with MarketXLS
- Real-time price:
=QM_Last("QQQ")— currently $601.92 - 200-day SMA:
=SimpleMovingAverage("QQQ", 200)— a widely watched technical indicator for QQQ - Dividend yield:
=DividendYield("QQQ")— currently 0.46% - Historical data:
=QM_GetHistory("QQQ")— build custom performance charts in Excel
With MarketXLS, you can create a comprehensive QQQ tracking spreadsheet that includes price alerts, moving average crossovers, and performance comparisons — all updated automatically.
Best Performing ETFs #6: Vanguard Growth ETF (VUG) — 16.9% CAGR
VUG delivered a 16.9% annualized return over the last decade with an ultra-low expense ratio of just 0.03% — making it the cheapest ETF on this entire list. This best performing ETF offers broader diversification than pure technology funds while still capturing the growth premium.
Growth Without Full Tech Concentration
VUG tracks the CRSP US Large Cap Growth Index, selecting large-cap U.S. companies with the strongest growth characteristics. While technology still dominates (typically 55-60% of the fund), VUG also holds fast-growing companies from consumer discretionary, healthcare, and communication services. With 155 holdings, it provides a natural hedge against pure tech sector risk.
Current Fund Snapshot
VUG trades at $457.98 with $198.9 billion in AUM — the second-largest fund on our list after QQQ. The dividend yield is 0.44%, and at 0.03%, the expense ratio is essentially free. On a $100,000 investment, you'd pay just $30 per year in management fees.
Cost Efficiency Champion
VUG's 0.03% expense ratio compounds significantly over a decade. Compared to a fund charging 0.50%, VUG saves you approximately $6,000 on a $100,000 investment over 10 years at 16.9% annual returns. Vanguard's commitment to low costs has been a major reason for the firm's dominance in the index fund space.
VUG in Your Excel Workflow
- Price check:
=Last("VUG")— currently $457.98 - Dividend analysis:
=DividendYield("VUG")— approximately 0.44% - Trend assessment:
=SimpleMovingAverage("VUG", 200)
Best Performing ETFs #7: iShares S&P 500 Growth ETF (IVW) — 16.0% CAGR
IVW earned a 16.0% annualized return over the last decade by focusing on the growth-oriented half of the S&P 500. It's a compelling option for investors who want to stay within the familiar S&P 500 universe while tilting toward higher-growth companies.
S&P 500 With a Growth Tilt
IVW tracks the S&P 500 Growth Index, which selects companies from the S&P 500 based on three growth factors: sales growth, the ratio of earnings change to price, and momentum. This methodology creates a portfolio that looks similar to VUG but uses different selection criteria and may hold slightly different names at any given time.
IVW vs. VUG: Splitting Hairs
The performance difference between IVW (16.0%) and VUG (16.9%) over the last decade has been modest — less than one percentage point annually. The main differentiator is expense ratio: IVW charges 0.18% vs. VUG's 0.03%. Over a decade on a $100,000 investment, that 0.15% gap costs you roughly $2,500. For cost-conscious investors, VUG has the clear edge. For those who prefer S&P 500-based indexing, IVW is the natural choice.
Excel Tracking
- Current price:
=Last("IVW") - Historical data:
=QM_GetHistory("IVW") - Moving average:
=SimpleMovingAverage("IVW", 200)
Best Performing ETFs #8: Vanguard Consumer Discretionary ETF (VCR) — 14.4% CAGR
VCR returned 14.4% annualized over the last decade, powered largely by two transformative companies: Amazon and Tesla. This best performing ETF demonstrates how sector disruption can drive extraordinary returns.
The Amazon and Tesla Effect
Consumer discretionary ETFs hold companies that sell non-essential goods and services — everything from automobiles and apparel to e-commerce and restaurants. VCR's performance was heavily influenced by Amazon's transformation of retail and Tesla's disruption of the automotive industry. At various points, these two stocks together represented 30-40% of the fund's total assets.
Current Fund Snapshot
VCR trades at $383.87 with $6.2 billion in AUM — the smallest fund on this list. The expense ratio is a low 0.09%, and the dividend yield of 0.76% is higher than the pure tech funds. With 292 holdings, it offers broad consumer discretionary exposure.
Beyond the Big Two
While Amazon and Tesla grab headlines, VCR also holds strong performers like Home Depot, McDonald's, Nike, and Booking Holdings. These companies benefit from consumer spending trends and have delivered solid long-term returns in their own right.
Risk Profile
VCR is cyclical — consumer discretionary spending drops during recessions and surges during economic expansions. With a beta of 1.28, it moves more than the market but less than semiconductor funds. Investors should be prepared for higher volatility compared to more defensive sectors.
MarketXLS Analysis
- Current price:
=Last("VCR")— currently $383.87 - Dividend yield:
=DividendYield("VCR")— approximately 0.76% - Historical analysis:
=QM_GetHistory("VCR")
Best Performing ETFs #9–10: Dividend and Healthcare Standouts
Schwab U.S. Dividend Equity ETF (SCHD) — 11.6% CAGR
SCHD delivered an 11.6% annualized return with significantly lower volatility than the growth-focused funds above. With a beta of just 0.74, SCHD moves far less than the market — making it arguably the best performing ETF in the dividend growth category on a risk-adjusted basis.
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on companies with strong financial health and a history of consistently growing dividends. Holdings include companies like Cisco, Chevron, Pfizer, and Home Depot.
Current Fund Snapshot
SCHD trades at $31.61 with an impressive $84.5 billion in AUM — a testament to investor demand for dividend strategies. The dividend yield of 3.31% is by far the highest on this list, dwarfing the 0.27-0.76% yields of the growth funds. At just 0.06% expense ratio, SCHD is also one of the cheapest.
- Current price:
=Last("SCHD")— $31.61 - Dividend yield:
=DividendYield("SCHD")— 3.31%, far above the S&P 500 average - Trend:
=SimpleMovingAverage("SCHD", 200)
Health Care Select Sector SPDR Fund (XLV) — 9.9% CAGR
XLV returned 9.9% annualized over the decade, proving that the best performing ETFs include defensive sectors too. Healthcare benefits from powerful secular trends including an aging global population, rising healthcare spending, and continuous medical innovation.
Current Fund Snapshot
XLV trades at $157.67 with $41.4 billion in AUM. The dividend yield of 1.57% provides meaningful income, and the beta of just 0.62 makes it the most defensive fund on this list. The 0.08% expense ratio keeps costs minimal.
XLV holds the 63 largest healthcare companies in the S&P 500, including UnitedHealth Group, Eli Lilly, Johnson & Johnson, and AbbVie. The fund's defensive characteristics — people need healthcare regardless of economic conditions — provided downside protection during market corrections.
- Current price:
=Last("XLV")— $157.67 - Dividend yield:
=DividendYield("XLV")— 1.57% - Historical data:
=QM_GetHistory("XLV")
Best Performing ETFs: Sector Analysis and What Drove Returns
Understanding why these best performing ETFs succeeded requires examining the broader economic and technological forces at work over the last decade.
The Technology Megatrend
Seven of the ten best performing ETFs on our list have significant technology exposure. This wasn't coincidence — the 2016–2026 period saw transformative developments including:
- Cloud computing adoption: Enterprise spending shifted from on-premises infrastructure to cloud services, benefiting companies like Microsoft (Azure), Amazon (AWS), and Alphabet (Google Cloud)
- The smartphone maturity cycle: While smartphone growth slowed, the ecosystem of apps, services, and content built on top of mobile platforms continued to expand
- Artificial intelligence: Starting around 2023, generative AI created a massive new demand cycle for high-performance computing chips, primarily benefiting NVIDIA and the broader semiconductor industry
- Digital advertising dominance: Meta and Alphabet consolidated their grip on the digital advertising market, generating enormous profits that drove stock price appreciation
The Semiconductor Supercycle
The two semiconductor ETFs (SMH and SOXX) at the top of our list reflect what many analysts call a semiconductor "supercycle." Unlike previous cycles that were driven by a single end market (like PCs or smartphones), the current cycle is powered by simultaneous demand from AI, automotive, IoT, 5G, and cloud computing. This multi-driver demand environment has supported higher chip prices, expanded margins, and record revenue growth for leading semiconductor companies.
SMH's market-cap-weighted approach gave it a significant edge over SOXX's more equal-weighted methodology during this period, as the largest semiconductor companies (particularly NVIDIA) captured a disproportionate share of AI-related revenue growth.
Growth vs. Value: A Decade-Long Divergence
The last decade was one of the longest periods of growth stock outperformance in market history. Low interest rates, abundant liquidity, and rapid technological innovation created the perfect environment for growth-oriented companies and, by extension, growth-focused ETFs. The spread between our #1 fund (SMH at 27.7%) and #10 fund (XLV at 9.9%) illustrates just how wide the gap between growth and defensive sectors became.
It's worth noting that this growth-value divergence is not guaranteed to continue. Rising interest rates, changing monetary policy, and sector rotation could shift the landscape in the decade ahead.
The Low-Cost Revolution
Another theme among the best performing ETFs is cost efficiency. The average expense ratio across our top 10 funds is just 0.15% — far below the industry average for actively managed funds (typically 0.50-1.00%). Vanguard's VUG at 0.03% and XLK at 0.08% demonstrate that investors don't need to pay high fees to access top-performing strategies.
Over a decade, the difference between a 0.03% and a 1.00% expense ratio on a $100,000 investment compounding at 17% per year is approximately $18,000. Cost savings compound just like returns.
How to Analyze the Best Performing ETFs in Excel with MarketXLS
One of the most powerful ways to research and monitor the best performing ETFs is by building a custom tracking spreadsheet in Excel with MarketXLS. Here's how to create a comprehensive ETF analysis workbook.
Step 1: Build a Live Price Dashboard
Create a simple table with all ten ETFs and pull in live pricing data:
| Cell A | Cell B (Formula) | Description |
|---|---|---|
| SMH | =Last("SMH") | Current price — $407.72 |
| SOXX | =Last("SOXX") | Current price — $354.66 |
| VGT | =Last("VGT") | Current price — $730.80 |
| XLK | =QM_Last("XLK") | Current price — $139.56 |
| QQQ | =QM_Last("QQQ") | Current price — $601.92 |
| VUG | =Last("VUG") | Current price — $457.98 |
| IVW | =Last("IVW") | Current price |
| VCR | =Last("VCR") | Current price — $383.87 |
| SCHD | =Last("SCHD") | Current price — $31.61 |
| XLV | =Last("XLV") | Current price — $157.67 |
Step 2: Add Dividend Yield Tracking
In the next column, use the DividendYield function to monitor income:
=DividendYield("SMH")— approximately 0.27%=DividendYield("SOXX")— approximately 0.49%=DividendYield("QQQ")— approximately 0.46%=DividendYield("SCHD")— approximately 3.31%=DividendYield("XLV")— approximately 1.57%
This lets you compare yield across growth and income-focused ETFs side by side. SCHD leads with 3.31%, while growth-focused funds like SMH (0.27%) and VGT (0.42%) show much lower yields — reflecting their reinvestment of profits into growth rather than distributions.
Step 3: Technical Analysis with Moving Averages
Add trend analysis using the SimpleMovingAverage function:
=SimpleMovingAverage("QQQ", 50)— 50-day moving average (short-term trend)=SimpleMovingAverage("QQQ", 200)— 200-day moving average (long-term trend)
When the 50-day moving average crosses above the 200-day ("golden cross"), it's traditionally considered a bullish signal. When it crosses below ("death cross"), it signals potential weakness. You can set up this comparison for all ten ETFs to identify which funds are in the strongest trends.
Step 4: Historical Performance Analysis
Use =QM_GetHistory("SMH") to pull historical price data into Excel. This allows you to:
- Calculate custom return periods (1-year, 3-year, 5-year, 10-year)
- Build performance charts comparing multiple ETFs
- Analyze drawdowns and recovery periods
- Backtest simple trading strategies
Step 5: Portfolio Construction
Once you've analyzed the best performing ETFs individually, use the MarketXLS Portfolio Builder to see how different allocations would have performed. You can model scenarios like:
- 60% QQQ / 20% SCHD / 20% XLV — growth with income and defensive exposure
- 40% VGT / 30% SOXX / 30% VUG — aggressive technology-focused growth
- Equal weight across all 10 funds — maximum diversification within the winners
Get started with MarketXLS to build your own ETF analysis workbook with live data, custom formulas, and automated tracking.
Best Performing ETFs: Lessons for the Next Decade
What can investors learn from studying the best performing ETFs of the last 10 years? Here are the key takeaways.
1. Sector Concentration Amplifies Returns (and Risk)
The top two performers — SMH (27.7%) and SOXX (24.8%) — are concentrated in a single industry with just 26 and 34 holdings respectively. This concentration was a massive tailwind when semiconductors were the market's hottest sector, but it also means these funds can decline 30-40% during sector-specific downturns. Investors should size concentrated sector bets appropriately within their overall portfolio.
2. Low Costs Compound Over Time
The best performing ETFs charge an average of just 0.15% in annual fees. Over a decade, this low-cost approach saved investors thousands of dollars compared to actively managed alternatives that often failed to beat these simple index funds. The cheapest fund (VUG at 0.03%) and the most expensive (SMH at 0.35%) differ by 0.32% — which amounts to roughly $5,000 on a $100,000 investment over 10 years.
3. Staying Invested Matters More Than Timing
Every single ETF on this list experienced at least one significant drawdown during the decade — the COVID crash of March 2020, the 2022 bear market, and various sector-specific corrections. Investors who stayed invested through these periods captured the full recovery and subsequent new highs. Those who tried to time the market often missed the best recovery days.
4. Diversification Within a Theme
While technology dominated, the smartest approach was diversifying within the winning theme. Holding both a broad tech fund (VGT at 21.8%) and a semiconductor fund (SMH at 27.7%) alongside a growth fund (QQQ at 19.1%) provided multiple angles on the technology megatrend while reducing single-stock risk.
5. Income and Growth Aren't Mutually Exclusive
SCHD's inclusion on this list proves that dividend-focused strategies can deliver competitive total returns. At 11.6% CAGR with a 3.31% current yield and a beta of just 0.74, SCHD turned $10,000 into roughly $30,000 while providing a growing income stream. For investors approaching or in retirement, combining growth ETFs with dividend growers like SCHD provides both capital appreciation and income.
Frequently Asked Questions About the Best Performing ETFs
What are the best performing ETFs of the last 10 years?
The best performing ETFs of the last 10 years (February 2016 – February 2026), ranked by compound annual growth rate, are: SMH (27.7%), SOXX (24.8%), VGT (21.8%), XLK (20.9%), QQQ (19.1%), VUG (16.9%), IVW (16.0%), VCR (14.4%), SCHD (11.6%), and XLV (9.9%). These returns are based on adjusted close prices and include reinvested dividends. Semiconductor and technology funds dominated the top of the rankings.
Why did SMH outperform SOXX over the last decade?
Despite both being semiconductor ETFs, SMH's market-cap-weighted approach gave NVIDIA and other mega-cap chip stocks a much larger portfolio weighting than SOXX's more equal-weighted methodology. Since NVIDIA was the single best-performing large-cap stock of the decade (driven by AI demand), SMH's heavier concentration in NVIDIA (20%+ at times) produced a 27.7% CAGR vs. SOXX's 24.8%. However, SOXX's broader diversification across 34 semiconductor stocks (vs. SMH's 26) may provide better downside protection if leadership shifts.
Are semiconductor ETFs still worth buying after their massive run?
Semiconductor ETFs like SMH and SOXX have delivered extraordinary returns, but future performance depends on continued demand growth for AI chips, data center expansion, and new applications like autonomous vehicles. Valuations are elevated — SMH trades at a P/E of 43.6 and SOXX at 45.8, well above historical averages. While the secular demand drivers remain strong, investors should consider their risk tolerance and time horizon. Use =Last("SOXX") and =SimpleMovingAverage("SOXX", 200) in MarketXLS to monitor current price relative to long-term trends before making decisions.
How do I choose between QQQ, VGT, and XLK?
These three ETFs overlap significantly but have important differences. QQQ (19.1% CAGR, 0.20% expense ratio, $399.4B AUM) tracks the NASDAQ-100 and includes non-tech companies like Amazon and Tesla. VGT (21.8% CAGR, 0.09% ER, $112.9B AUM) is a pure technology sector fund with 325 holdings. XLK (20.9% CAGR, 0.08% ER, $89.8B AUM) holds 74 S&P 500 technology stocks at the lowest cost. Choose VGT for the broadest pure-tech exposure, QQQ for large-cap growth beyond just technology, or XLK for S&P 500-only technology exposure at the lowest cost. You can compare them side-by-side using MarketXLS formulas and the ETF overlap calculator.
What is a good expense ratio for an ETF?
Among the best performing ETFs, expense ratios range from 0.03% (VUG) to 0.35% (SMH, SOXX). Generally, an expense ratio below 0.20% is considered low for a broad market or sector ETF. For specialized funds like semiconductor ETFs, ratios up to 0.35% are reasonable given the concentrated exposure. Avoid ETFs charging more than 0.75% unless they offer genuinely unique exposure you can't get elsewhere. The difference between VUG's 0.03% and a typical active fund's 0.75% on $100,000 over 10 years at 17% annual returns is approximately $12,000.
How can I track ETF performance in Excel?
MarketXLS makes it easy to track any ETF directly in Microsoft Excel. Use =Last("TICKER") or =QM_Last("TICKER") for current prices, =QM_GetHistory("TICKER") for historical data, =DividendYield("TICKER") for income analysis, and =SimpleMovingAverage("TICKER", 200) for technical analysis. You can build a complete ETF monitoring dashboard that updates automatically with live market data. Visit MarketXLS to get started.
Final Thoughts: Best Performing ETFs and Your Portfolio
The best performing ETFs of the last decade tell a compelling story about the power of innovation, the importance of cost efficiency, and the rewards of long-term investing. Semiconductor funds SMH (27.7%) and SOXX (24.8%) led the pack, followed by technology funds VGT, XLK, and QQQ — all delivering over 19% annualized returns. Even the dividend-focused SCHD (11.6%) and defensive XLV (9.9%) outperformed many expectations, proving that multiple strategies can work over a full market cycle.
As you build or rebalance your portfolio for the years ahead, use these best performing ETFs as a research starting point — not a guarantee. Analyze current valuations, understand the risks of sector concentration, and maintain diversification across asset classes.
The tools to make smarter ETF investment decisions are at your fingertips. With MarketXLS, you can track prices, analyze dividends, calculate moving averages, and pull historical data for any ETF — all directly in Excel. Visit our ETF Research Center to explore individual fund profiles, or use the Portfolio Builder to test different allocation strategies.
The best time to start investing was 10 years ago. The second best time is today — armed with the right data and the right tools from MarketXLS.
