An article in Financial Planning listed 20 ETFs that have been the head of their class the last 10 years. Some of those funds featured iShares ETFs with technology and healthcare being top performers in terms of sheer gains.
Not only have the funds been returning double-digit gains the last 10 years, they’re doing the same this year despite the pandemic.
“Home to nearly $260 billion in assets, the 20 ETFs with the biggest gains of the decade had an average return of nearly 20%, according to Morningstar Direct data,” the Financial Planning article said. “In a year defined by coronavirus-driven market volatility, the same funds have continued to outperform with gains more than four-times their peers.”
Technology Continues Its Hot Run
Invesco NASDAQ Internet ETF (PNQI ): The investment seeks to track the investment results (before fees and expenses) of the NASDAQ Internet IndexSM. The fund generally will invest at least 90% of its total assets in securities that comprise the underlying index.
The underlying index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in Internet-related businesses that are listed on one of the three major U.S. stock exchanges. According to the article, PNQI is up about 20% the last 10 years.
Another technology fund that gives investors more broad exposure is the SPDR NYSE Technology ETF (XNTK), which is up 19.16% based on the article’s numbers. XNTK seeks to provide investment results that correspond generally to the total return performance of the NYSE Technology Index that tracks the performance of publicly traded technology companies.
The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. It may invest in equity securities that are not included in the index, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds. The index is composed of 35 leading U.S.-listed technology-related companies.
Healthcare ETFs Respond to the Upside
With 2020 marred by the Covid-19 pandemic, this put an emphasis on the importance of healthcare. As such, funds like the Invesco DWA Healthcare Momentum ETF (PTH ) flourished—up 18.63% the last 10 years based on the article’s numbers.
PTH seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Healthcare Technical Leaders Index. PTH will invest at least 90% of its total assets in the securities that comprise the underlying index, which is composed of at least 30 securities of companies in the healthcare sector that have powerful relative strength or “momentum” characteristics.