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From Chips to the Nasdaq: 3 of the Best-Performing ETFs You’ve Missed in the Past Half-Decade

Five Years of Stellar Performance You Can Still Tap Into

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Dividend Dominator
April 14, 2025

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👉️ Democrats Latest Demand: SEC to Investigate Donald Trump 🔎 

👉️ The Top 3 Best-Performing ETFs Over the Last 5 Years: Five Years of Stellar Performance You Can Still Tap Into 💰️ 

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Democrats Demand SEC Investigate Donald Trump

As per CBC News on April 11th, several senior Senate Democrats have called for a U.S. SEC investigation into whether President Donald Trump and his associates engaged in insider trading or market manipulation.

This follows Trump’s sudden announcement of a 90-day pause on reciprocal tariffs, which caused significant stock market volatility.

The Democrats, including Senators Elizabeth Warren and Chuck Schumer, pointed to Trump’s social media post claiming it was a “GREAT TIME TO BUY” stocks just before the tariff pause, which led to a market surge.

They argue that this raises suspicions of potential securities law violations, as insiders may have profited from advance knowledge of the policy shift.

However, experts like Richard Painter, a former White House ethics lawyer, note there’s no clear evidence of insider trading yet, though Trump’s market-influencing statements are unusual and warrant scrutiny.

The White House dismissed the allegations as “partisan games.”

The Top 3 Best-Performing ETFs Over the Last 5 Years

Welcome to another edition of The Profit Zone 👋 

Today we’re diving into three of the best-performing exchange-traded funds (ETFs) over the past 5 years, based on total return.

These funds have delivered exceptional results, driven by their benchmarks, strategies, and holdings.

Below, you’ll find detailed breakdowns of their benchmarks, investment approaches, top 10 holdings, Management Expense Ratios (MERs), and five-year total returns.

Let’s explore what’s behind their success.

1. VanEck Semiconductor ETF (SMH)

Benchmark:

This ETF tracks the MVIS US Listed Semiconductor 25 Index, which includes the 25 largest U.S. listed companies involved in semiconductor production and equipment.

The index is market-cap-weighted, meaning larger firms have a greater influence on performance.

Strategy:

SMH focuses on providing exposure to the semiconductor industry, a critical sector powering technology from smartphones towards artificial intelligence.

Its strategy is straightforward: invest in leading companies driving innovation in chip design, manufacturing, and related equipment.

The fund is passively managed, aiming to replicate the index’s performance.

Top 10 Holdings (as of April 2025):

  1. NVIDIA Corporation (NVDA) – 19.84%

  2. Taiwan Semiconductor Manufacturing Co. (TSM) – 11.38%

  3. Broadcom Inc. (AVGO) – 7.73%

  4. Qualcomm Inc. (QCOM) – 5.15%

  5. Asml Holdings (ASML) - 5.00%

  6. Texas Instruments (TXN) - 4.74%

  7. Advanced Micro Devices (AMD) – 4.72%

  8. Applied Materials Inc. (AMAT) – 4.61%

  9. Intel Corporation (INTC) – 4.58%

  10. Analog Devices (ADI) - 4.44%


These holdings represent approximately 72% of the fund’s total assets, highlighting its concentration in major semiconductor players.

Management Expense Ratio (MER): 0.35%

At 0.35%, SMH’s MER is competitive for a sector-specific ETF, balancing cost with targeted exposure.

Five-Year Total Return: 191% (as at April 7th)

From April 2020 to March 2025, SMH delivered a total return of ~191%, translating to an annualized return of approximately 38%.

This performance reflects the semiconductor boom, fuelled by demand for chips in AI, cloud computing, and consumer electronics.

2. iShares Semiconductor ETF (SOXX)

Benchmark:

SOXX follows the NYSE Semiconductor Index, which tracks U.S.-listed companies in the semiconductor space.

Unlike SMH, this index includes a broader range of firms (30 holdings) and uses a modified market-cap weighting approach, slightly diversifying exposure beyond the largest players.

Strategy:

The fund seeks to capture the growth of the semiconductor industry by investing in companies involved in designing, manufacturing, and selling chips. It’s passively managed, aiming to mirror its benchmark’s returns, and benefits from the sector’s role in technological advancement.

Top 10 Holdings (as of April 2025):

  1. Texas Instruments Inc. (TXN) – 8.20%

  2. NVIDIA Corporation (NVDA) – 7.97%

  3. Broadcom Inc. (AVGO) – 7.56%

  4. Advanced Micro Devices (AMD) – 7.34%

  5. Qualcomm Inc. (QCOM) – 6.94%

  6. Intel Corporation (INTC) – 4.62%

  7. KLA Corporation (KLAC) – 4.29%

  8. Applied Material Inc. (AMAT) - 4.19%

  9. Lam Research Corporation (LRCX) – 4.16%

  10. NXP Semiconductors (NXPI) - 3.90%


These account for roughly 60% of the portfolio, offering a slightly less concentrated profile than SMH.

Management Expense Ratio (MER): 0.35%

SOXX’s MER of 0.35% is the same as that of SMH’s and is reasonable for a specialized ETF.

Five-Year Total Return: 117% (as at April 7th)

Over the past five years, SOXX returned 117%, or about 23.4% annualized.

Its strong performance mirrors the semiconductor sector’s growth, though it trails SMH slightly due to its broader diversification and weighting methodology.

3. Invesco QQQ Trust (QQQ)

Benchmark:

QQQ tracks the Nasdaq-100 Index, comprising the 100 largest non-financial companies listed on the Nasdaq Stock Market. The index is market-cap-weighted and heavily skewed toward technology, making it a growth-oriented benchmark.

Strategy:

This ETF provides broad exposure to innovative, high-growth companies, with a significant tilt toward technology (about 50% of the portfolio).

It’s passively managed to replicate the Nasdaq-100’s performance, appealing to investors seeking long-term capital appreciation from leading U.S. firms.

Top 10 Holdings (as of April 2025):

  1. Apple Inc. (AAPL) – 8.93%

  2. Microsoft Corporation (MSFT) – 8.11%

  3. NVIDIA Corporation (NVDA) – 7.27%

  4. Amazon.com Inc. (AMZN) – 5.53%

  5. Broadcom Inc. (AVGO) – 3.49%

  6. Meta Platforms Inc. (META) – 3.41%

  7. Costco Wholesale Corporation (COST) – 3.09%

  8. Tesla Inc. (TSLA) – 2.84%

  9. Netflix (NFLX) - 2.82%

  10. Alphabet Inc. (GOOG) – 2.57%
     

These holdings make up roughly 48% of the fund, reflecting its reliance on mega-cap tech giants.

Management Expense Ratio (MER): 0.20%

At 0.20%, QQQ offers a low-cost way to access a diversified basket of top-tier companies.

Five-Year Total Return: 110% (as at April 7th)

QQQ’s five-year total return of 110% equates to an annualized return of around 22%.

While slightly lower than the semiconductor-focused ETFs above, its broader scope and stability make it a standout for diversified growth.

Key Insights

The past five years have favoured technology-driven ETFs, with SMH and SOXX capitalizing on the semiconductor surge and QQQ benefiting from the dominance of the titans in the Nasdaq-100.

SMH’s concentrated approach delivered the highest returns, while SOXX offered a slightly broader take on the same sector.

QQQ provided a more balanced growth profile with lower volatility.

Their low MERs, ranging from 0.20% to 0.35%, enhance their appeal by keeping costs manageable.

However, as always past performance is no guarantee of future results, and you should consider sector concentration risks, especially in semiconductor-heavy funds, alongside their own risk tolerance and goals.

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
Follow me on Twitter, Instagram and LinkedIn

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