"Beating the S&P 500 is what every investor aims to do, and doing so for a long time is a coveted achievement. Unfortunately, most hedge fund managers and retail investors have been unable to beat the benchmark. You'd often hear the advice to buy and hold a low-cost S&P 500 ETF, like the SPY, and forget about stock-picking or ETFs that track other benchmarks."
"VanEck Semiconductor ETF (NASDAQ:SMH ) replicates the performance of the MVIS US Listed Semiconductor 25 Index. This lets it have exposure to a broad number of companies manufacturing or designing semiconductors. It is the largest semiconductor ETF you can buy, with total net assets of over $29 billion . SMH has gained 263.6% in the past five years. This is significantly higher than the S&P 500's gains of around 99.8% as of this writing."
Beating the S&P 500 remains difficult for most investors and hedge funds. Common advice favors buying and holding a low-cost S&P 500 ETF such as SPY. Recent decades' gains have been driven by a few key industries, and concentrating weight in those megatrends can amplify future returns. Sector-focused ETFs can serve as satellite holdings alongside an S&P 500 core to seek outperformance. The VanEck Semiconductor ETF (SMH) tracks the MVIS US Listed Semiconductor 25 Index and provides broad exposure to semiconductor manufacturers and designers. SMH has shown substantially higher multi-year gains versus the S&P 500.
Read at 24/7 Wall St.
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