If you put $10,000 into the right ETF in 2016, you would have well over $200,000 today. The best performing ETFs over the last 10 years did something almost no individual stock picker could match consistently: capture entire winning sectors at very low cost.
This guide ranks the top 10-year ETF performers, breaks down what each one holds, and covers the risks that come with chasing past returns. Data is based on returns through early 2026. New to fund investing? Our overview of what are index funds explains the basic structure these ETFs are built on.
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How We Measured Performance
All returns below are total return, meaning price gains plus reinvested dividends, over the 10-year window from early 2016 to early 2026. We focus on funds with at least $1 billion in assets so liquidity and bid-ask spreads stay reasonable.
This is past performance only. Past returns do not predict future returns, especially for sector funds that have already had a major run. If you are still deciding whether to buy a single sector pick or a single stock, our ETF vs stock explainer is a useful read.
Our Top Picks for Best Performing ETFs of the Last 10 Years
Five ETFs stand out at the top of the leaderboard. Expense ratios are accurate as of May 2026.
- VanEck Semiconductor ETF (SMH): Approximately 27.7% annualized return, 0.35% expense ratio, holds about 25 semiconductor stocks. Best for: investors who want concentrated chip exposure.
- iShares Semiconductor ETF (SOXX): Approximately 24.8% annualized return, 0.35% expense ratio, holds about 30 semiconductor stocks. Best for: investors who want chip exposure with slightly more diversification than SMH.
- Vanguard Information Technology ETF (VGT): Approximately 21.8% annualized return, 0.09% expense ratio, holds about 325 tech stocks. Best for: investors who want broad tech at the lowest cost.
- Technology Select Sector SPDR (XLK): Approximately 20.9% annualized return, 0.08% expense ratio, holds 74 S&P 500 tech names. Best for: investors who want concentrated large-cap tech.
- Invesco QQQ Trust (QQQ): Approximately 19.1% annualized return, 0.20% expense ratio, tracks the Nasdaq-100. Best for: investors who want tech-led growth with non-tech exposure too.
Four of the top five are concentrated in technology or semiconductors. That is the single biggest lesson of the last decade.
SMH: VanEck Semiconductor ETF
SMH is the top dog of the last decade. It holds the 25 largest US-listed semiconductor companies, weighted by market cap. The top holdings include the giants of chip design and manufacturing.
A $10,000 investment in SMH in 2016 was worth roughly $215,000 by early 2026. That kind of return comes with real risk. SMH currently trades at a price-to-earnings ratio above 40, well above its historical average. Valuations that high mean smaller margin for error if growth slows.
SOXX: iShares Semiconductor ETF
SOXX is the close cousin of SMH. It holds about 30 semiconductor stocks and tracks a different index, the NYSE Semiconductor Index. The two funds overlap heavily, but SOXX caps individual position sizes more aggressively.
A $10,000 investment in SOXX in 2016 grew to roughly $175,000 by early 2026. The slight performance gap versus SMH comes from index weighting differences. Both funds carry the same 0.35% expense ratio and similar concentration risk.
VGT: Vanguard Information Technology ETF
VGT is the broad tech pick. It holds about 325 names across hardware, software, semiconductors, and IT services. The expense ratio is 0.09%, much lower than the pure semiconductor funds.
Returns of about 21.8% per year over 10 years are huge for a fund this diversified. You give up some upside compared to SMH and SOXX, but you also avoid putting everything in one slice of the industry. For investors who want long-term tech exposure as a core position, VGT is hard to beat. Comparing structures matters too, so our ETF vs mutual fund guide explains why ETFs are often cheaper and more tax-efficient.
XLK: Technology Select Sector SPDR
XLK is the most concentrated big tech ETF on the list. It holds 74 stocks that come from the technology sector of the S&P 500, and the top ten holdings make up well over 60% of the fund. If you want the broader market that XLK is carved from, see our S&P 500 index fund guide.
The 0.08% expense ratio is essentially tied with VGT for cheapest in the category. Returns of about 20.9% per year over 10 years are very close to VGT, but you get there with more concentration. If you already hold a broad fund and want extra mega-cap tech tilt, XLK is the cleaner choice.
QQQ: Invesco QQQ Trust
QQQ tracks the Nasdaq-100, the 100 largest non-financial stocks on the Nasdaq exchange. It is the only fund in the top five that includes meaningful non-tech exposure, holding names from consumer, healthcare, and communications. For a direct head-to-head against the broader market, see our SPY vs QQQ comparison.
Returns of about 19.1% per year over 10 years are still excellent. The expense ratio of 0.20% is higher than VGT and XLK, but QQQ has more liquidity for options trading. For a buy-and-hold investor, the lower-cost QQQM offers nearly identical exposure at 0.15%.
Why You Should Not Just Buy Last Decade's Winner
The biggest mistake new investors make is buying whatever did best last year. Top performers often go through long stretches of underperformance after a big run.
- In 2022, SMH and SOXX both fell more than 35% from their highs before recovering.
- Concentrated sector funds can lag the S&P 500 for years when the cycle shifts.
- High valuations, like the P/E above 40 in semiconductors today, leave less room for error.
A more durable approach is to pair a broad market fund like VTI or VOO with one sector or growth tilt, instead of going all in on whatever just printed the best chart. For a wider menu of low-cost core picks, browse our list of the best index funds for beginners.
How to Use Past Performance the Right Way
Past performance is useful as a sanity check, not a buy signal. Use it to ask three questions before buying.
- What drove the return? SMH and SOXX won because of a semiconductor super-cycle. Will it continue?
- Is the fund still cheap? Expense ratios above 0.50% eat heavily into long-term returns.
- Does it fit your overall plan? Owning XLK, VGT, and QQQ together is mostly the same bet three times, not real diversification.
Write down the answers before clicking buy. If you cannot defend the position in two sentences, do not take it. New to picking individual positions in general? Our walkthrough on how to invest in stocks covers the basics step by step.
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Frequently Asked Questions
What ETF has the highest 10-year return?
The VanEck Semiconductor ETF (SMH) has the highest 10-year return among large mainstream ETFs, with an annualized return near 27.7% through early 2026. That means a $10,000 investment in 2016 was worth roughly $215,000 ten years later.
Are semiconductor ETFs still a good buy?
Semiconductor ETFs have delivered exceptional returns, but valuations are elevated and the cycle is mature. They can fit a long-term portfolio as a tilt, but going all in after a major run-up adds significant drawdown risk. Past returns do not predict future results.
What is the safest top-performing ETF on this list?
VGT and XLK are the most diversified options on the list, with broad exposure to large-cap tech at very low cost. They still carry sector concentration risk, but they hold more names than SMH or SOXX and trade with lower volatility.
Should I buy QQQ or VGT for long-term tech exposure?
VGT is cheaper at 0.09% and more diversified with over 300 holdings, making it strong for buy-and-hold. QQQ has higher liquidity and includes some non-tech names from the Nasdaq-100, which appeals to investors who want growth exposure beyond pure tech.
