It is surprising since the index it is based on is not well known, but when ever I compare it over 6mo, 1y, 2y, 3y, 5y, etc, the only one that comes close and occasionally does a bit better is QQQ, which is based on the NASDAQ, and then, for only one of those date ranges.

  • Rule of thing: Nothing consistently outperforms anything else. Except for some ETFs which are designed to go down on average, which are consistently outperformed by almost everything – user253751 Mar 29 at 10:11
  • Jacknad, the simple answer is 5 years is nothing. – Fattie Mar 29 at 11:47

Your questions is unanswerable the way you wanted it.

Time horizon
Even 5y is a rather short horizon for investing in the stock market. Investments are judged by performance of decades, not years. The main reason being that investments need not only perform in the good times but also in the bad times during a prolonged recession. Otherwise performance cannot be "consistently" better

If you look at the index composition, this is basically an Apple and Microsoft ETF. This level of concentration can make for stellar performance in the right times, like Apple going from a company with high hopes but mediocre performance to one of the most valuable companies of the world. But it also makes for really bad performance if the high-weight companies fail to deliver

Both ETFs you mention are based on the tech sector which has indeed seen great gains. However, the tech sector is a classic growth sector. Historical data shows that growth stocks tend to perform pretty well during extended bull markets but pretty bad during bear markets when all those high hopes come crashing down to reality. The problem is, we will only known in hindsight how far they will rise before the next bear market and how far they will drop when the time inevitably comes.

So, comparing ETFs for minuscule differences is not really helpful in selecting one of them.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.