Top-performing ETF sectors over the past five years include Cryptocurrency, FANG+, Materials, and Semiconductor.

From Nasdaq: 2025-01-13 14:00:00

The S&P 500 delivered a 14.43% annualized return over the past five years despite COVID turmoil. Cryptocurrency ETFs led the way, with one fund up over 50%. Other top-performing ETF sectors include FANG+, Materials, and Semiconductor ETFs, reflecting market dynamics and trends in the post-COVID era.

The COVID-19 pandemic caused a market crash in 2020, with the S&P 500 plummeting over 30% due to lockdowns and disruptions. Central banks and governments responded with aggressive policies to stabilize markets and support the economy, leading to a rapid recovery and new investment themes emerging in the post-COVID market.

In response to inflation concerns, the Fed implemented a hawkish policy in 2022, leading to rate hikes and market worries. However, by September 2024, the Fed began cutting rates again, resulting in a total of 100 bps in cuts. These policy shifts created opportunities for specific ETF sectors to outperform the market.

Top-performing ETF sectors over the past five years include Cryptocurrency ETFs like Grayscale Ethereum Trust and FANG+ sectors such as MicroSectors FANG+. Materials ETFs like Sprott Uranium Miners and Semiconductor ETFs like VanEck Semiconductor also outperformed, reflecting trends in AI, nuclear energy, and chip industry growth.



Read more at Nasdaq: 4 ETF Sectors That Outperformed the S&P 500 Over the Past Five Years