Achieving excess Alpha in the U.S. stock market is a primary goal for many active investors. While the S&P 500 has continued its rally in 2025, posting double-digit growth and breaking above 6,500 for the first time in August, its long-term average annual return of 13.2% (price return, excluding dividends) has been surpassed by several targeted ETFs.
The following funds have significantly outperformed the broad market benchmark in both the short and long term. Key data for these top performers, along with the benchmark SPDR S&P 500 ETF (SPY) for comparison, is detailed below (returns as of September 22):
| ETF Name | Expense Ratio | YTD Return | 5-Yr Ann. Return | 10-Yr Ann. Return |
| ProShares Ultra Gold (UGL) | 0.95% | 86.5% | 20.1% | 17.8% |
| VanEck Semiconductor ETF (SMH) | 0.35% | 33.0% | 31.5% | 30.8% |
| Grayscale Bitcoin Trust ETF (GBTC) | 1.5% | 18.9% | 54.0% | 77.0% |
| Invesco QQQ Trust (QQQ) | 0.2% | 18.2% | 17.9% | 20.1% |
| SPDR S&P 500 ETF (SPY) | 0.095% | 14.8% | 16.7% | 15.1% |
Safe-haven assets have seen massive inflows amid widespread geopolitical conflicts and economic uncertainty. The ProShares Ultra Gold (UGL) ETF has emerged as a standout performer, rallying nearly 50% in the first half of 2025 alone. With a year-to-date return of 86.5%, it has far outpaced the S&P 500. The ETF, which holds $780 million in assets, also demonstrates consistent long-term growth with a 10-year annualized return of 17.8%, solidifying its role as a tool for hedging market volatility.
A quick look at the roaring success of companies like Nvidia underscores the potential of semiconductor-focused ETFs. The VanEck Semiconductor ETF (SMH), a behemoth with $30.7 billion in net assets, offers exposure to 25 holdings across the chip industry. This provides investors access to the computational power demand driven by artificial intelligence and other tech trends. Despite a brief stumble in Q2 due to announced reciprocal tariffs, the fund’s remarkable 10-year annualized return of 30.8% highlights its strong and resilient performance. With an expense ratio of 0.35%, SMH positions itself as a core holding for long-term tech exposure.
The SEC’s approval of spot Bitcoin ETFs in early 2024 marked a watershed moment, and the Grayscale Bitcoin Trust (GBTC) remains a primary gateway for traditional market investors to gain exposure to Bitcoin. The fund’s staggering 10-year annualized return of 77% is a testament to crypto’s growth. However, investors must carefully weigh the potential rewards against a high expense ratio of 1.5% and the inherent volatility of cryptocurrencies.
The Invesco QQQ Trust, which tracks the Nasdaq-100 Index, has outperformed the S&P 500 in seven of the past ten years. With a low expense ratio of just 0.2%, the ETF provides concentrated exposure to innovative mega-cap stocks. Its top holdings are dominated by the “Magnificent Seven,” with the technology sector accounting for more than half of the fund’s assets. This focus has driven a 10-year annualized return of 20.1%, making it a cost-effective option for investors seeking to capitalize on the tech sector’s growth.
While the historical performance of these ETFs is impressive, future returns are not guaranteed. Factors such as tech sector volatility, evolving geopolitical landscapes, and regulatory changes could impact performance. Investors are advised to align their choices with their individual risk appetite, interest in specific industries, and belief in long-term technological trends. Thorough research remains paramount, as past performance is no guarantee of future results.
