5 ETFs That Could Outperform the S&P 500 in the Next 5 Years

2 hours ago 1

John Csiszar

Thu, January 22, 2026 astatine 9:02 AM CST 4 min read

Even nonrecreational investors person a hard clip beating the returns of the S&P 500, particularly connected a accordant basis. And portion definite stocks volition by explanation apical the mean instrumentality of the 500 stocks successful the index, definite exchange-traded funds (ETFs) whitethorn connection an adjacent amended accidental for investors.

While nary 1 tin foretell aboriginal marketplace movements, determination are a fistful of ETFs that look poised for outperformance. Quality fundamentals, momentum and assemblage rotation are conscionable a fewer of the reasons wherefore these ETFs whitethorn connection bully comparative show implicit the adjacent 5 years. Just retrieve to bash your ain owed diligence earlier buying immoderate of these ETFs, ensuring that they lucifer your concern objectives and hazard tolerance.

AUM/net assets: $31.55 billion
Dividend yield: 0.33%
One-year performance: 39.61%
Expense ratio: 0.35%
Sector/style: Technology/semiconductors
Why it mightiness bushed the S&P 500: As evidenced by the ETF’s beardown one-year performance, semiconductors are presently successful favor. With the artificial quality (AI) tailwind the marketplace is experiencing, galore analysts spot the assemblage having country to run.
Risks: Cyclical; dense attraction (top-10 holdings correspond much than 75% of the full ETF; apical holding Nvidia comprises astir 19%; non-diversified ETF)

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AUM/net assets: $19.38 billion
Dividend yield: 0.92%
One-year performance: 15.66%
Expense ratio: 0.15%
Sector/style: U.S. large- and mid-cap stocks with caller precocious terms momentum
Why it mightiness bushed the S&P 500: In caller history, the show of the wide S&P 500 has been dominated by a prime fistful of stocks; if marketplace leaders proceed to grounds momentum, MTUM should outperform.
Risks: Momentum investing, by its precise nature, is susceptible to nett taking, marketplace shifts and precocious volatility.

AUM/net assets: $15.04 billion
Dividend yield: 1.07%
One-year performance: 7.74%
Expense ratio: 0.15%
Sector/style: U.S. large-cap stocks with beardown fundamentals, debased leverage and accordant returns connected equity
Why it mightiness bushed the S&P 500: The marketplace has been led by high-growth stocks successful caller years; if marketplace breadth widens, oregon investors statesman to reward companies with much accordant gross streams, SPHQ volition autumn into favor.
Risks: Growth stocks person shown small motion of weakening; alleged “quality” stocks, with their defensive, low-growth nature, whitethorn not gully capitalist dollars unless a large marketplace rotation occurs.