This ETF Trounced the S&P 500 in 2025. Here's Why It Could Do It Again Next Year

Investing in an S&P 500 ETF like the Vanguard S&P 500 ETF or the SPDR S&P 500 ETF (NYSEMKT: SPY) can be one of the best financial decisions you make in your lifetime.After all, the S&P 500 has historically returned an annual average of 9% a year, and the broad-market index even beats most hedge funds most years. With its holdings diversified among the top 500 U.S. stocks, and a quarterly rebalancing to make sure that the collection stays up to date, the S&P 500 has a proven formula to deliver long-term gains.However, an S&P 500 index fund isn't necessarily the best-performing ETF in a given year, and several ETFs have outperformed in 2025. In fact, one has delivered more than double the S&P 500's gains this year. That's the VanEck Semiconductor ETF (NASDAQ: SMH), which is up 39.5% year-to-date through Dec. 17. The chart below shows how the semiconductor ETF's performance this year compares to the S&P 500.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool