Ten years of ETF performance data tells one story with remarkable consistency: technology won. Specifically, semiconductors won. Every single ETF in the top 10 by 10-year annualized return comes from the technology sector, and four of the five best are pure semiconductor plays. If a portfolio held any combination of these funds over the past decade, it compounded far ahead of the broader market.
The data below covers non-leveraged ETFs only. Leveraged products like SOXL or TQQQ can post eye-catching numbers over shorter windows, but their daily reset mechanics cause performance to decay significantly over multi-year holding periods. They are trading instruments, not investment vehicles, and have no place in a genuine 10-year return comparison.
The 10 Best Performing ETFs of the Last 10 Years
| Ticker | Fund | 10-Year Annualized Return | Expense Ratio | AUM |
|---|---|---|---|---|
| SMH | VanEck Semiconductor ETF | 28.18% | 0.35% | $22.2B |
| SOXX | iShares Semiconductor ETF | 25.54% | 0.35% | $14.9B |
| PSI | Invesco Dynamic Semiconductors ETF | 24.14% | 0.57% | $874.2M |
| XSD | SPDR S&P Semiconductor ETF | 21.66% | 0.35% | $1.5B |
| IYW | iShares U.S. Technology ETF | 20.56% | 0.40% | $17.8B |
| XLK | Technology Select Sector SPDR Fund | 20.48% | 0.09% | $67.3B |
| VGT | Vanguard Information Technology ETF | 20.46% | 0.10% | $70.4B |
| FTEC | Fidelity MSCI Information Technology Index ETF | 20.23% | 0.08% | $10.2B |
| IGM | iShares Expanded Tech Sector ETF | 19.81% | 0.41% | $4.7B |
| IXN | iShares Global Tech ETF | 19.36% | 0.41% | $4.8B |
VanEck Semiconductor ETF (SMH)
SMH is the top-performing non-leveraged ETF over the past decade at 28.18% annualized. That number is not a typo. Compounded over 10 years, it turns $10,000 into roughly $112,000.
The fund tracks a market-cap-weighted index of 25 of the largest US-listed semiconductor companies. Nvidia, TSMC, and Broadcom have dominated its holdings during the AI buildout, and their outsized gains explain most of SMH’s advantage over its semiconductor peers. The concentration is a feature for investors who want maximum exposure to the sector’s biggest winners, though it also means performance is heavily dependent on a small number of names.
- 10-year annualized return: 28.18%
- Expense ratio: 0.35%
- AUM: $22.2B
- Index: MVIS US Listed Semiconductor 25 Index (market-cap-weighted)
Pros
- The highest 10-year return among non-leveraged ETFs in the dataset
- Low 0.35% expense ratio for the level of return generated
- $22.2B in assets provides deep liquidity and tight spreads
- Nvidia and TSMC exposure at scale, which drove the bulk of the decade’s semiconductor gains
Cons
- Heavy concentration in the top 3-5 holdings means a downturn in Nvidia alone moves the fund significantly
- Market-cap weighting locks in the largest positions just as valuations tend to be highest
- Semiconductor cycles are violent; the 2022 drawdown in SMH exceeded 50% peak to trough
iShares Semiconductor ETF (SOXX)
SOXX is the second-best performer at 25.54% annualized over the decade. It is also a market-cap-weighted semiconductor fund, but tracks 30 holdings instead of SMH’s 25 and applies a modified weighting methodology that caps individual positions. The practical effect is slightly less Nvidia concentration than SMH, which cost it roughly 2.5 percentage points of annualized return over the past decade. Whether that tradeoff is worth it depends entirely on how the investor views concentration risk going forward.
- 10-year annualized return: 25.54%
- Expense ratio: 0.35%
- AUM: $14.9B
- Index: ICE Semiconductor Index (modified market-cap-weighted, 30 holdings)
Pros
- 25.54% annualized return over 10 years is exceptional by any standard
- 30 holdings versus SMH’s 25 provides marginally broader semiconductor exposure
- Position caps reduce single-stock concentration risk compared to SMH
- 0.35% expense ratio matches SMH at the same cost
Cons
- The position caps that reduce concentration also reduced 10-year returns by roughly 2.5 percentage points relative to SMH
- Still heavily weighted toward large-cap semiconductor names; not a small-cap semiconductor play
- $14.9B in AUM is large but meaningfully smaller than SMH, which affects bid-ask spreads in volatile sessions
Invesco Dynamic Semiconductors ETF (PSI)
PSI takes a different approach to semiconductor exposure. Instead of market-cap weighting, the fund uses a quantitative model to select and weight US semiconductor companies, tilting toward smaller growth names and reducing mega-cap concentration. Over the past decade, that approach returned 24.14% annualized, which ranks third but trails both SMH and SOXX. The underperformance relative to those two funds tells you something specific: the largest semiconductor names drove most of the sector’s gains during the AI cycle, and PSI’s methodology structurally underweights them.
- 10-year annualized return: 24.14%
- Expense ratio: 0.57%
- AUM: $874.2M
- Index: Dynamic Semiconductor Intellidex Index (quantitative selection model)
Pros
- Quantitative model reduces mega-cap concentration and provides exposure to mid-size semiconductor companies that SMH and SOXX underweight
- 24.14% annualized return still far exceeds the S&P 500 over the same period
- Useful as a complement to market-cap-weighted semiconductor funds for investors who want broader sector coverage
Cons
- 0.57% expense ratio is the highest among the semiconductor ETFs in this list, and meaningfully higher than SMH and SOXX at 0.35%
- The methodology that reduces concentration also cost investors roughly 4 percentage points of annualized return versus SMH over the decade
- $874.2M in AUM is small relative to SMH and SOXX, which can mean wider spreads during high-volatility sessions
SPDR S&P Semiconductor ETF (XSD)
XSD is equal-weighted across all S&P semiconductor index constituents, which is the most structurally distinct approach in this group. Every holding gets the same starting weight, which is rebalanced periodically. The result is meaningful exposure to smaller semiconductor names that the other funds barely touch, and genuine diversification within the sector rather than Nvidia-and-friends with a long tail attached. The 10-year return of 21.66% is still exceptional, but the equal-weight structure demonstrably cost performance during a period when mega-caps dominated.
- 10-year annualized return: 21.66%
- Expense ratio: 0.35%
- AUM: $1.5B
- Index: S&P Semiconductor Select Industry Index (equal-weighted)
Pros
- Equal weighting provides the most diversified semiconductor exposure of the four semiconductor funds in this list
- 0.35% expense ratio matches the lower end of this group
- Meaningful exposure to smaller semiconductor companies that outperform in certain market cycles
Cons
- Equal weighting structurally underweights the mega-caps that drove the decade’s best returns, resulting in the lowest 10-year return among the four semiconductor ETFs here
- $1.5B in AUM is substantially smaller than SMH and SOXX, which affects trading costs
- Frequent rebalancing can generate taxable events in taxable accounts
iShares U.S. Technology ETF (IYW)
IYW is where the list transitions from pure semiconductor plays to broader tech sector funds. With a 10-year return of 20.56%, it sits at the top of the diversified tech group and within striking distance of the semiconductor funds below it. The fund tracks a market-cap-weighted index of US technology companies, which in practice means extremely heavy exposure to Apple, Microsoft, and Nvidia. Those three names have defined US large-cap tech performance over the past decade, and a fund that holds them at market-cap weight has ridden that wave.
- 10-year annualized return: 20.56%
- Expense ratio: 0.40%
- AUM: $17.8B
- Index: Russell 1000 Technology RIC 22.5/45 Capped Index
Pros
- Top-returning diversified US tech ETF in the 10-year dataset
- $17.8B in assets provides strong liquidity
- Market-cap weighting naturally concentrates in the highest-performing mega-cap tech names
Cons
- 0.40% expense ratio is slightly higher than XLK and VGT for similar tech sector exposure
- Concentration in Apple, Microsoft, and Nvidia means performance is highly correlated to those three stocks specifically
- Broad “technology” label understates how concentrated the actual portfolio is in a handful of names
Technology Select Sector SPDR Fund (XLK)
XLK is the cheapest way to own a large-cap US tech ETF with a meaningful track record. At 0.09%, it costs less than virtually every competitor in this category. The 10-year return of 20.48% is nearly identical to IYW and VGT, which makes the expense ratio the most meaningful differentiator at this level of the list. XLK restricts itself to the 75 S&P 500 technology stocks, which means no small or mid-cap tech exposure, and over 50% of the portfolio concentrated in the top 10 holdings.
- 10-year annualized return: 20.48%
- Expense ratio: 0.09%
- AUM: $67.3B
- Index: Technology Select Sector Index (S&P 500 tech stocks only)
Pros
- 0.09% expense ratio is the lowest among broad tech ETFs with comparable 10-year returns
- $67.3B in AUM makes it one of the most liquid sector ETFs available
- Tracks only S&P 500 technology stocks, providing a clean, large-cap-only tech allocation
Cons
- Small and mid-cap tech companies are excluded entirely, which limits upside if smaller names outperform
- Over 50% of the portfolio concentrated in the top 10 holdings despite holding 75 stocks
- The index methodology has historically created large AAPL and NVDA positions at the exact moments when those valuations were highest, creating concentration risk at peak prices
Vanguard Information Technology ETF (VGT)
VGT is the most diversified tech ETF in the top 10 by holding count. The fund includes small and microcap tech names that XLK and IYW exclude entirely, which provides broader sector coverage. The 10-year return of 20.46% is essentially tied with XLK. VGT also comes at 0.10%, making it nearly as cheap as XLK. The practical difference between VGT and XLK comes down to small-cap exposure and AUM. For long-term investors who believe smaller tech names will contribute meaningfully to future returns, VGT is the more complete tech allocation.
- 10-year annualized return: 20.46%
- Expense ratio: 0.10%
- AUM: $70.4B
- Index: MSCI US Investable Market Information Technology 25/50 Index
Pros
- Includes small and microcap tech stocks that most competing funds exclude, providing genuine sector breadth
- 0.10% expense ratio is among the cheapest in its category
- $70.4B in AUM, one of the largest tech ETFs, ensuring tight spreads and high liquidity
- Broader holding count reduces concentration in any single name
Cons
- Small-cap inclusion cuts both ways; those positions dragged on performance during periods when mega-caps dominated
- The 10-year return is essentially identical to XLK, meaning the additional complexity of small-cap coverage added no meaningful return premium over the decade
- MSCI index methodology can result in different sector classifications than the S&P methodology used by XLK, creating holdings overlap surprises
Fidelity MSCI Information Technology Index ETF (FTEC)
FTEC offers the cheapest tech ETF in this list at 0.08% and one of the largest at $10.2B in assets. The 10-year return of 20.23% trails VGT and XLK by roughly 20 basis points annually, which over 10 years is meaningful in absolute dollar terms but close enough that expense ratio advantages partially offset the performance gap. FTEC tracks the MSCI USA IMI Information Technology 25/50 Index, which is similar in construction to VGT’s benchmark but results in slightly different weightings in practice.
- 10-year annualized return: 20.23%
- Expense ratio: 0.08%
- AUM: $10.2B
- Index: MSCI USA IMI Information Technology 25/50 Index
Pros
- 0.08% is the lowest expense ratio among all 10 ETFs in this list
- The MSCI benchmark includes small and midcap tech companies, providing broader coverage than S&P 500-only funds
- $10.2B in AUM provides solid liquidity
Cons
- The 10-year return of 20.23% trails VGT (20.46%) and XLK (20.48%), meaning the expense ratio advantage did not fully offset the performance gap
- As a Fidelity-branded ETF, it is less universally recognized than Vanguard and iShares equivalents, which can affect adoption and therefore long-term liquidity growth
- Marginally lower AUM than VGT reduces liquidity relative to the largest competitors in the category
iShares Expanded Tech Sector ETF (IGM)
IGM earns the “expanded” label by going beyond traditional tech to include internet retail and other tech-adjacent industries not captured in standard sector definitions. Amazon and similar companies appear in IGM because of this expanded scope, which differentiates it from a pure tech sector fund. The 10-year return of 19.81% reflects that broader mandate. At 0.41%, the expense ratio is higher than most competitors at this level.
- 10-year annualized return: 19.81%
- Expense ratio: 0.41%
- AUM: $4.7B
- Index: North American Technology Sector Index
Pros
- Expanded mandate includes internet retail exposure that pure tech sector funds exclude, providing a more complete picture of technology’s economic footprint
- 10-year return of 19.81% still substantially exceeds the S&P 500 over the same period
- US and Canadian technology company coverage adds a cross-border element absent from US-only competitors
Cons
- 0.41% expense ratio is expensive relative to XLK at 0.09% and VGT at 0.10% for what is functionally similar large-cap tech exposure
- $4.7B in AUM is relatively small for an iShares product in this category, which affects spread dynamics in volatile sessions
- The “expanded” mandate means holdings can drift into categories that investors expecting pure tech exposure do not anticipate
iShares Global Tech ETF (IXN)
IXN is the only global fund in the top 10, holding technology companies from markets outside the US alongside American names. The 10-year return of 19.36% is the lowest in the list, which reflects a structural reality: US tech has overwhelmingly outperformed international tech over the past decade. European, Korean, and Japanese tech companies are meaningful holdings in IXN, and their relative underperformance dragged on returns versus US-only competitors. For investors who want tech exposure with geographic diversification, IXN is the only option in this top 10. For investors who believe US tech dominance will continue, it is the least compelling choice here.
- 10-year annualized return: 19.36%
- Expense ratio: 0.41%
- AUM: $4.8B
- Index: S&P Global Information Technology Sector Index
Pros
- Only fund in the top 10 with meaningful international tech exposure, including non-US semiconductor and hardware companies
- 19.36% annualized return over 10 years is still exceptional in absolute terms
- Geographic diversification reduces dependence on US regulatory and political risk affecting domestic tech names
Cons
- The 10-year return is the lowest in the list, and the gap versus the top US-only competitors is nearly 9 percentage points annualized, which translates to a dramatic difference in terminal wealth over time
- 0.41% expense ratio is among the highest here
- International tech exposure that drove the diversification thesis also explains the underperformance; non-US tech has consistently lagged US tech for a decade
What Drove a Decade of Tech Dominance
The pattern in this data is not subtle. Semiconductors are in everything: phones, cars, data centers, gaming consoles, and increasingly every AI system being built or operated. As demand for computing power compounded over the decade, semiconductor companies captured a disproportionate share of the gains. Nvidia specifically became one of the most valuable companies in the world during the AI infrastructure buildout that accelerated after 2022, and every fund with significant Nvidia exposure benefited massively.
The broader tech ETFs in positions 5 through 10 outperformed the S&P 500 by 7-10 percentage points annualized over the decade. That edge came primarily from Apple, Microsoft, and Nvidia, which grew from large positions to dominant ones as market-cap weighting automatically concentrated holdings in the highest-performing names.
The expense ratio story at the diversified tech level is worth noting. XLK charges 0.09%. FTEC charges 0.08%. VGT charges 0.10%. Over a 10-year period, the difference between paying 0.09% and 0.41% is meaningful, and it shows up in the returns. IGM and IXN, the two 0.41% funds, are the bottom two performers in the list. That is not a coincidence.
Bottom Line
SMH is the clear winner by a significant margin. A 28.18% annualized return over 10 years at 0.35% in expenses is the best combination of cost and performance in this dataset. Investors who wanted pure semiconductor exposure and held SMH for the full decade were not just beating the S&P 500 by a wide margin, they were beating most actively managed funds by an even wider one.
For investors who wanted broad US tech exposure at minimal cost, XLK and VGT are nearly interchangeable on 10-year numbers. XLK wins on expense ratio at 0.09% versus 0.10%. VGT wins on breadth by including small-cap names. The 2 basis point cost difference and the small-cap inclusion trade-off have produced essentially identical 10-year outcomes, which is the point.
The one clear laggard in the list is IXN. A global tech mandate with similar fees to IGM but nearly half a percentage point lower annual return reflects a structural disadvantage: the decade belonged to US tech, and every fund with significant non-US exposure paid for the diversification with performance.
Past performance is not a guarantee of future results. The 10-year window covered here includes one of the greatest bull markets in US technology history, driven by specific tailwinds, including zero interest rates, AI adoption, and the smartphone era maturation, that may not repeat in the same form.