What funds outperform S&P 500?
Over the last five years, technology is the only sector that has outperformed the S&P 500, with the communication (led by Meta Platforms and Alphabet) and consumer discretionary (led by Amazon and Tesla) sectors also performing well.The market is being driven higher by big tech.
Over the last five years, technology is the only sector that has outperformed the S&P 500, with the communication (led by Meta Platforms and Alphabet) and consumer discretionary (led by Amazon and Tesla) sectors also performing well.The market is being driven higher by big tech.
Nasdaq 100 has significantly outperformed S&P 500 in terms of performance. Over the past 15 years, Nasdaq 100 has delivered a CAGR of around 16%, while S&P 500 has returned about 8%.
MarketWatch spotlights VanEck Morningstar Wide Moat ETF (MOAT), consistently outperforming the S&P 500 by targeting companies with long-term competitive advantages or “economic moats.”
Vanguard Growth & Income Fund (VGIAX)
VGIAX's one-two punch of investment goals helped it beat the overall stock market in 2022 and 2023. Over the past 10 years, this fund's average annual return is about even with the S&P 500. Likewise, its trailing 12-month dividend yield approaches the broad market's.
Over the long term, though, the market is overwhelmingly consistent. Despite experiencing plenty of crashes, corrections, recessions, and other downturns, the S&P 500 has still earned positive total returns over decades.
Do Dividend ETFs Outperform the S&P 500? Not necessarily. While dividend ETFs can offer stable income, their growth potential is generally lower over the long run. That said, dividend ETFs may outperform the S&P 500 during particular time frames, such as during a recession or a period of easing interest rates.
Is Berkshire Hathaway Stock A Buy Now? Berkshire Hathaway stock generally lagged the S&P 500 index since late 2017, but managed to handily outperform the benchmark index in 2022. It lagged again in 2023 after giving up some spring and summer gains.
- Best Index Funds. 3 Yr Returns. 16% - 18%
- Nifty 50. 3 Yr Returns.
- Nifty Next 50. 3 Yr Returns.
- Nifty Midcap. 3 Yr Returns. 24% - 26%
- Nifty Smallcap. 3 Yr Returns.
- Global/US. 3 Yr Returns. 12% - 14%
- Others. 3 Yr Returns. 11% - 13%
Our list of 13 stocks that outperform the S&P 500 every year for the last 5 years includes companies from a diverse range of sectors with the technology sector accounting for the biggest proportion of stocks, followed by the industrials sector. The list includes companies such as DexCom, Inc.
Does QQQ outperform sp500?
Source: Bloomberg L.P., as of 3/31/2023. For the past ten years, the Invesco QQQ ETF based on NAV return (17.69%) has outperformed the S&P 500 (12.22%) and Russell 1000 Growth Index (14.58%). Source: Nasdaq, Bloomberg L.P. as of 12/31/2022. Source: Bloomberg, L.P., as of 3/31/2023.
I put my personal 401(k) and a lot of my mutual fund investing in four types of mutual funds: growth, growth and income, aggressive growth, and international. I personally spread mine in 25% of those four.
S&P Dow Jones Indices' scorecard compares the performance of actively-managed mutual funds to major indices. It found that over the course of one year, 51.08% of actively-managed mutual funds underperformed the S&P 500, and 48.92% of actively-managed funds outperformed the S&P 500.
- Vanguard Dividend Appreciation Index/ETF VDADX VIG.
- Vanguard European Stock Index/FTSE Europe ETF VEUSX VGK.
- Vanguard FTSE All-World ex-US Small Cap ETF VSS.
- Vanguard FTSE All-World ex-US Index/ETF VFWAX VEU.
- Vanguard Growth Index/ETF VIGAX VUG.
Top of the list by some margin was the JP Morgan Emerging Europe, Middle East & Africa investment trust, with a one-year return of almost 50%. The Amundi Semiconductor ETF comfortably took second place with a one-year return of 43%, well ahead of the iShares Poland ETF at 35%.
In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500, then you would be sitting on a cool $1.2 million today.
Assuming an average annual return rate of about 10% (a typical historical average), a $10,000 investment in the S&P 500 could potentially grow to approximately $25,937 over 10 years.
Up Months | Weak Months | |
---|---|---|
S&P 500 | February March, April, May, July, August, October, November, December | January, June, September |
Nasdaq 100 | January, March, April, May, July, August, October, November, December | February, June, September |
Stock | Implied upside from Feb. 7 close | Forward dividend yield |
---|---|---|
AbbVie Inc. (ABBV) | 12.6% | 3.5% |
Bank of America Corp. (BAC) | 23.6% | 2.9% |
Coca-Cola Co. (KO) | 8.4% | 3.1% |
McDonald's Corp. (MCD) | 9.6% | 2.3% |
Can Berkshire outperform the S&P 500?
Berkshire Hathaway stock doesn't pay a dividend, but it has allocated its resources well enough to outperform the S&P 500 as an investment for years. Berkshire is one of the few stocks you can buy and forget, because your money is tied up in a sprawling business built to last forever.
- Dow Inc. ...
- International Business Machines (IBM) ...
- Verizon Communications (VZ) ...
- AT&T (T) ...
- Prudential Financial (PRU) ...
- Philip Morris International (PM) ...
- Walgreens Boots Alliance (WBA) ...
- 3M Company (MMM)
Key Points. Warren Buffett is highly regarded for his ability to consistently beat the benchmark S&P 500. Berkshire Hathaway's investing profile has dramatically changed since the turn of the century, however. As a result, growth investors will likely be better served owning this low-cost indexed Vanguard ETF.
Berkshire Hathaway's sheer size makes it much more difficult to find companies that make a difference to its bottom line. Berkshire Hathaway (BRK.A) (BRK.B) stock over the past 20 years has almost precisely equaled the return of the S&P 500 SPX.
Berkshire CEO Warren Buffett has suggested that investors favor the B shares when the A-share premium is above 1% and opt for the Class A stock if the two classes are at parity, as was the case at the start of 2023. Berkshire Hathaway, like many other companies, has two classes of stock outstanding.