Long-term investment is, a priori, the safest way to make money or at least that’s what experts in this field always say. The recommendation par excellence is to invest in the S&P 500 index with an average annualized return of 8% since 1940. However, there are those who seek an even higher return and the truth is that there are ETFs that in the last decade have proven to be tremendously profitable with an annualized return that exceeds 18%. This would mean 180% in a decade, or what is the same, multiply almost by four the initial investment. That’s why this is the list of the 5 most profitable long-term ETFs.
db Physical Rhodium ETC | XRH0
This ETF is a bit out of the ordinary, since it does not replicate any specific index, but what it does is replicate the price of rhodium. A material that has risen strongly in the last decade, so much so that the price of the ounce exceeds $ 17,000 and has reached $ 29,000 – the gold It trades below 1,900 – when in 2008 it was 8,000 dollars.
Its use for vehicles is fundamental, since its characteristics are essential in the new components that form the catalysts. Something that has caused demand to increase brutally in the last decade making this ETF have a 10-year annualized yield of 25.9% and is consecrated as the most profitable.
Invesco Technology S&P US Select Sector UCITS ETF (GBP) | XLKQ
If there has been a star sector in the last ten years that has been the technological one, and the proof of this is this Invesco ETF with an annualized 10-year return of 20.47%.
The investment tries to replicate as faithfully as possible, before commissions and expenses, the profitability of the S&P Select Sector Capped 20% Technology TR (Net) index. The index represents the information technology and telecommunications services sectors of the S&P 500 index. All component securities are classified according to the Global Industry Classification Standard and maintain the same rating as found in the parent S&P 500.
Lyxor Nasdaq-100 Ucits ETF Acc (GBP) | NASL
Technology continues to dominate this ranking with this Lyxor ETF that replicates the index Nasdaq 100 American. With a ten-year annualized return of 19.64%, the fund is a passively managed UCITS fund that replicates a benchmark. The Fund’s investment objective is to follow the upward and downward evolution of the NASDAQ-100 Notional Net Total Return Index (the “Benchmark”), denominated in U.S. dollars and representative of 100 of the largest U.S. and international non-financial corporations, while minimizing the volatility of the difference between the Fund’s performance and that of the Benchmark.
SPDR® MSCI World Technology UCITS ETF USD Acc (GBP) | TECW
The fourth position is also occupied by an ETF of the technology sector, but focused on another index. With a 19.57% annualized ten-year return, it has positioned itself as the fourth most profitable long-term based on Morningstar data.
The Fund’s investment objective is to track the performance of technology companies in developed markets around the world.
Lyxor MSCI World Information Technology TR UCITS ETF – C-USD (GBP)
The last place is also for another Lyxor ETF with a profitability of 19.43%. The fund’s investment objective is to follow both the bullish and bearish performance of the MSCI World Information Technology Index – Net Total Return (the “Index”) denominated in US dollars – while minimizing the volatility of the difference between the Sub-fund’s performance and the performance of the Index (the “Tracking Error”). The expected level of tracking error under normal market conditions is expected to be up to 0.50%.