The Top ETFs: What You Need to Know 💕✨
If you were to Google “top ETFs,” you’ll find a million different blog posts and articles, each listing completely different ETFs as the best. And that’s because there’s no one-size-fits-all answer. What makes an ETF the “top” really depends on a few key things. What market are you looking at? What time frame are you measuring? Are you focusing on short-term performance, one-year returns, or something longer like five or ten years?
When we think about investing, we always take a long-term approach. That’s why we took a deep dive into Morningstar’s data on the top-performing ETFs over the past five years. We chose this time frame because five-year annualized returns give a clearer, more reliable picture of how an ETF is actually performing. The stock market has good years and bad years. Some ETFs will have massive growth one year, only to crash the next. Looking at a five-year period gives a much better sense of whether an ETF is actually strong or just riding a short-term trend.
This also helps us spot the difference between real long-term growth and short-lived hype. Some ETFs will have huge one-year returns, but if they can’t sustain that over time, they might not be the best choice for a long-term portfolio. We saw this happen with tech stocks. There was a massive boom in 2021, a huge crash in 2022, and then a rebound in 2023. If you only looked at one of those years, you’d get a completely skewed idea of how tech ETFs are performing overall. When you look at five-year returns, you can actually see which ETFs have held up the best through different market conditions.
So, let’s get into it. Here are the top 10 ETFs over the past five years and why they performed so well.
1️⃣ BetaShares NASDAQ 100 ETF (NDQ) – 22.57% annualised return
This ETF tracks the NASDAQ 100, which is full of tech giants like Apple, Microsoft, Amazon, and Nvidia. Tech stocks have been some of the best performers over the last few years, and this ETF gives you exposure to all the big players. The pro is that it has had super high historical growth, but the con is that tech can be very volatile, which means it is not always smooth sailing.
2️⃣ Smart US Large Growth ETF (USG) – 21.69%
This one focuses on large-cap growth stocks, which means it invests in big US companies that tend to perform best in bull markets. The pro is that it is a great way to get exposure to some of the fastest-growing companies, but the con is that these kinds of stocks can fall hard during downturns.
3️⃣ Loftus Peak Global Disruption ETF (LPGD) – 21.58%
This ETF is all about disruptive industries like AI, digital platforms, and cutting-edge tech. If you want to invest in the next big thing, this kind of ETF is super exciting. The pro is that it has huge growth potential, but the con is that it has super high fees (2.55%), making it one of the most expensive ETFs on this list.
4️⃣ Hyperion Global Growth Companies ETF (HYGG) – 20.99%
This is an actively managed ETF that focuses on global high-growth stocks, meaning fund managers hand-pick the investments. The pro is that it has a strong management team that focuses on high-quality companies, but the con is that it also has high fees (1.91%).
5️⃣ BetaShares Global Cybersecurity ETF (HACK) – 19.66%
Cybersecurity is one of those industries that is growing like crazy thanks to rising online threats and increased corporate spending on security. The pro is that it is in a fast-growing, high-demand sector, but the con is that it can be super volatile since it focuses on a niche industry.
6️⃣ Smart US ESG ETF (USA) – 18.35%
This ETF invests in high-performing ESG-compliant companies, meaning it focuses on businesses that meet environmental, social, and governance (ESG) standards. The pro is that it gives you exposure to more sustainable industries, but the con is that ESG funds sometimes underperform broader markets since they exclude certain industries.
7️⃣ Smart US 500 ETF (USF) – 18.02%
This ETF tracks the S&P 500 but has a slight tilt toward growth stocks. The pro is that it gives you broad exposure to the US market, but the con is that it is similar to standard S&P 500 ETFs, just with a slightly different weighting.
8️⃣ BetaShares Geared US Equity ETF (GGUS) – 17.86%
This is a leveraged ETF, which means it amplifies gains and losses. When the market is up, it can deliver huge returns, but when the market is down, it can also magnify losses. The pro is that it offers high returns when markets are strong, but the con is that it is higher risk, which makes it less ideal for long-term, passive investors.
9️⃣ iShares Global 100 ETF (IOO) – 17.77%
This ETF tracks the 100 largest global companies, giving you exposure to a super diverse range of industries. The pro is that it provides global diversification, but the con is that its growth rate is slightly lower than tech-heavy ETFs.
🔟 iShares S&P 500 ETF (IVV) – 17.09%
This one tracks the S&P 500, which is one of the most popular index funds in the world. The pro is that it is a low-cost, stable, long-term investment, but the con is that it is less exciting compared to industry-specific ETFs.
So, what is the takeaway?
Tech and growth ETFs have absolutely dominated the last five years, but does that mean they will keep doing so? Honestly, no one knows. Unless you have a crystal ball, there is no way to predict exactly what the next five years will look like. What we do know is that by focusing on long-term trends instead of short-term hype, we can make smarter, more informed investing decisions.
Would love to hear your thoughts. Do you invest in any of these ETFs, or are there others on your watchlist? Let’s chat in the comments. 💬💕
This info is accurate as of end of Jan 2025
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