Discover 3 Amazing ETFs Aiming for Nearly 20 Percent Annual Returns
Exchange-traded funds (ETFs) represent an efficient way for investors to diversify their portfolios. Notably, some funds are achieving remarkable returns that exceed market averages. Here, we explore three exceptional ETFs aimed at nearly 20 percent annual returns.
Top Performing ETFs Aiming for Nearly 20 Percent Annual Returns
- iShares Core S&P 500 ETF (LSE:CSPX)
- Franklin FTSE India UCITS ETF (LSE:FLXI)
- VanEck Semiconductor ETF (NASDAQ:SMH)
iShares Core S&P 500 ETF
The iShares Core S&P 500 ETF stands out for its consistent high returns. This fund predominantly invests in US multinational companies. Its diversified holdings protect against sector-specific downturns.
Approximately 36% of its investment is in high-growth technology firms, including Nvidia, Apple, and Microsoft. Since November 2015, it has delivered an impressive average yearly return of 17.3%.
Franklin FTSE India UCITS ETF
The Franklin FTSE India ETF focuses on one of Asia’s fastest-growing economies. Over the past five years, it has achieved an average annual return of 13.4% by investing in large- and mid-cap companies. Key holdings include HDFC Bank and Hindustan Unilever.
With India’s GDP growth accelerating to 8.2% during Q3, the ETF’s outlook remains positive. However, investors should note the potential volatility that can accompany emerging markets.
VanEck Semiconductor ETF
The VanEck Semiconductor ETF leverages the significant growth driven by the artificial intelligence boom. It boasts an extraordinary average annual return of 27.9% over the last five years. Major catalysts include companies like Nvidia and Taiwan Semiconductor Manufacturing Co.
Their products span various high-growth markets, including smartphones, cloud computing, and electric vehicles. While investing in cyclical semiconductor shares poses some risks during economic downturns, the fund remains a solid option for investors seeking substantial returns.
Conclusion
These three ETFs highlight effective strategies to pursue nearly 20 percent annual returns. By investing in diversified portfolios, they offer attractive opportunities for investors aiming to enhance their wealth.
