Best Performing ETFs of the Last 10 Years: A Guide to Top-Performing Exchange-Traded Funds
- J+A
- Feb 9
- 6 min read
Updated: Feb 25
When it comes to long-term investing, exchange-traded funds (ETFs) have emerged as a favorite choice for many investors due to their diversified nature, lower fees, and potential for strong performance. Over the last decade, certain ETFs have outperformed the broader market, delivering impressive returns to investors. In this article, we'll explore the top-performing ETFs of the last 10 years, analyzing their returns, sectors, and investment strategies to help you make informed investment decisions.
What Are ETFs and Why Do They Matter?
ETFs are investment funds that trade on stock exchanges, similar to stocks. They typically track an index, sector, commodity, or other asset classes. ETFs offer investors a diversified portfolio, low expense ratios, and liquidity, making them an appealing option for both novice and experienced investors. By purchasing shares of an ETF, investors gain exposure to a basket of securities in a specific market segment without having to buy individual stocks.
Comparison between ETF's and Mutual funds? Read here.
Why Look at 10-Year ETF Performance?
The last decade has been marked by significant market events, including the COVID-19 pandemic, the rise of technology (AI), and major shifts in global economic policies. By examining the performance of ETFs over the past 10 years, investors can better understand which sectors and industries have flourished and which have faced challenges.
Best Performing ETFs of the Last 10 Years
Below are some of the best-performing ETFs of the last 10 years, based on their total returns and long-term growth potential.
1. Invesco QQQ Trust (QQQ)
10-Year Return (as of 2025): 300%+
Expense Ratio: 0.20%
Sector: Technology
Average Annual Return (CAGR): ~14.87%
The Invesco QQQ Trusthas one of the best returns of the last 10-years, with very low costs. When broken down into an average annual return (CAGR), this equates to an impressive ~14.87% growth per year. This performance is largely attributed to the dominance of tech stocks like Apple, Microsoft, and Amazon, which have driven the fund’s performance higher. Because of COVID these companies could benefit greatly. Seeing their dominance in the market it is likely that they can still grow further, although the returns of the last 10 years were very high historically.
2. SPDR S&P 500 ETF Trust (SPY)
10-Year Return (as of 2025): 200%+
Expense Ratio: 0.09%
Sector: Broad Market
Average Annual Return (CAGR): ~12.43%
The SPDR S&P 500 ETF Trust tracks the S&P 500 Index, which includes 500 of the largest U.S. companies. Over the last 10 years, SPY has delivered returns of over 200%, equating to an average annual return of approximately 12.43%. This performance has been driven by the steady growth of large-cap U.S. companies across various sectors. This ETF is basically the basis where all other funds are measured against. We did not yet invested in ETF's, because our real-estate investments used up most of our cashflow at the moment, but the S&P500 will be definitely part of our portfolio in the future.
3. ARK Innovation ETF (ARKK)
10-Year Return (as of 2025): 500%+
Expense Ratio: 0.75%
Sector: Innovation, Technology, Healthcare
Average Annual Return (CAGR): ~23.52%
The ARK Innovation ETF has been one of the highest performers, with an eye-popping 10-year return of over 500%. Its average annual return (CAGR) stands at an impressive 23.52%, driven by its focus on disruptive innovation in fields like artificial intelligence, genomics, and autonomous driving. However, note that ARKK has also experienced higher volatility due to its concentrated portfolio of high-growth companies.
Even thought this is probably one of the best performing ETF's in the market, we would not invest in this ETF. Partly because the costs are very high compared to other ETF's and also the returns are heavily influenced by only a few companies (which is the case in all ETF's in some extent). Within ARKK the biggest driver was Tesla with 13.000% return. It is unlikely that Tesla will have the same kind of returns in the next decades, especially with the increased competition. The volatility and costs would make us skip this ETF. But for the more risk takers or early-adepters, this is definitely one to watch.
4. Vanguard Information Technology ETF (VGT)
10-Year Return (as of 2025): 250%+
Expense Ratio: 0.10%
Sector: Technology
Average Annual Return (CAGR): ~15.56%
The Vanguard Information Technology ETF has benefited from the rapid growth of technology over the past decade, delivering a return of over 250%. With an average annual return (CAGR) of approximately 15.56%, VGT has proven to be a strong performer for investors seeking exposure to the technology sector without the risk of a single stock.
The Vanguard Information Technology ETF (VGT) and the Invesco QQQ Trust (QQQ) are very similar (around 50% of the portfolio is the same), but they have different focuses and sector allocations. While VGT is primarily focused on the Information Technology sector, QQQ tracks the performance of the Nasdaq-100 Index, which includes the largest non-financial companies in the Nasdaq stock exchange, and has a much broader sector exposure.
The choice between these two is basically a choice of which focus you prefer. The costs and returns are very similar. Our preference would be a more broader exposure, therfore QQQ would be a bit better fit for us.
5. iShares MSCI Emerging Markets ETF (EEM)
10-Year Return (as of 2025): 70%+
Expense Ratio: 0.68%
Sector: Emerging Markets
Average Annual Return (CAGR): ~5.25%
The iShares MSCI Emerging Markets ETF provides exposure to developing economies like China, Brazil, and India. Over the last 10 years, it has delivered returns of over 70%, or an average annual return of around 5.25%. While emerging markets have shown strong growth, their performance has been more volatile compared to U.S. stocks, with a relatively lower annual return.
The returns of the emerging markets, but also the European markets have been much lower than the US markets. Historically this have been the case in most years, but definitely not all years and the returns are not that different.
In a diverse portfolio it is advised to have some international investments like this ETF. We currently don't have that yet, just some seperate European stocks, but once our portfolio will be more mature and less real-estate focused then we consider one of the European or Emerging markets ETF's.
6. Vanguard Total Stock Market ETF (VTI)
10-Year Return (as of 2025): 200%+
Expense Ratio: 0.03%
Sector: Broad Market
Average Annual Return (CAGR): ~12.43%
Vanguard’s Total Stock Market ETF has mirrored the performance of the broader U.S. stock market, delivering total returns of over 200% over the past decade. This corresponds to an average annual return (CAGR) of approximately 12.43%. Its broad diversification across large, mid, and small-cap stocks has contributed to steady growth over time.
What we love about this one is, that it is basically everything from the US. It contains a lot of markets and very low costs. It is definitely one that requires the least amount of effort. So if you can only choose one, this would be our choice.
How to Choose the Best Performing ETFs for Your Portfolio
When selecting ETFs for long-term investment, there are a few key factors to consider:
Sector Focus: Some ETFs, like QQQ and VGT, focus heavily on specific sectors like technology. If you believe a particular sector will continue to grow, sector-specific ETFs can provide higher returns, though they may carry more risk.
Expense Ratios: Lower expense ratios mean more of your investment goes toward generating returns. Vanguard and iShares ETFs are known for their low-cost offerings, making them a solid choice for cost-conscious investors.
Diversification: Broad market ETFs, like SPY and VTI, offer diversification across multiple sectors and industries. These funds are generally less risky than sector-specific ETFs and can be a great foundation for a balanced portfolio.
Growth vs. Stability: Growth-focused ETFs, like ARKK, have the potential for high returns but may also be more volatile. If you prefer stability, consider ETFs that track more established markets like the S&P 500 or the total U.S. stock market.
Risk Tolerance: Always assess your risk tolerance and investment time horizon before selecting an ETF. Emerging market ETFs and tech-focused funds are riskier but offer higher growth potential, while broad market ETFs tend to be safer with more moderate returns.
Conclusion
Remember, past performance is not a guarantee of future results. It’s essential to conduct thorough research, consider your investment goals, and assess the risk before investing in any ETF. By choosing the right ETFs and maintaining a diversified portfolio, you can potentially achieve strong returns over the long term.
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