Best Performing ETFs on Robinhood to Invest

If you're looking to invest in the best performing ETFs on Robinhood, you're in the right place. The top ETFs on the platform have consistently delivered strong returns over the past year.

One of the top performers is the ARK Innovation ETF (ARKK), which has seen a 150% return over the past 12 months. This ETF focuses on disruptive innovation and has a strong track record of beating the market.

The Invesco QQQ ETF (QQQ) is another top choice, with a 120% return over the past year. This ETF tracks the Nasdaq-100 Index, which is made up of the 100 largest and most actively traded non-financial stocks listed on the Nasdaq stock exchange.

The SPDR S&P 500 ETF Trust (SPY) has also been a consistent performer, with a 90% return over the past 12 months. This ETF tracks the S&P 500 Index, which is widely considered to be a benchmark of the US stock market.

If you're looking for top-performing ETFs on Robinhood, you'll want to consider the ones that have consistently delivered high returns over the years. The top-performing ETFs year-to-date in 2024, as of September 30, 2024, are a good place to start.

These ETFs have shown impressive growth, but it's essential to look at their performance over the long term. The top-performing ETFs in the last 3 years, on an annualized basis between September 29, 2021, and September 30, 2024, have also been impressive.

If you're willing to look even further back, the top-performing ETFs in the last 5 years, on an annualized basis between September 30, 2019, and September 30, 2024, are worth considering. And if you're a long-term investor, the top-performing ETFs in the last 10 years, on an annualized basis between September 30, 2014, and September 30, 2024, might be the way to go.

Here are some of the top-performing ETFs to consider:

One ETF that stands out is the Invesco QQQ ETF (QQQ), which has averaged an annualized total return of 18% over the past decade.

Investing $10,000 in the right ETF can lead to significant growth over time. If you had invested in the VanEck Semiconductor ETF (SMH) 10 years ago, your balance today would be over $105,000.

The best-performing ETF in the last decade was SMH, and investing in it has yielded impressive results. The iShares Semiconductor ETF (SOXX) was a close second, turning a $10,000 investment into over $85,000.

Low-cost ETFs can be a great option for investors, and the Vanguard Growth ETF (VUG) is a prime example. With an annual fee of just 0.04%, it's an affordable way to invest in large-cap growth stocks.

VUG has averaged an annualized total return of 16% over the past decade, making it a solid choice for long-term investors.

Robinhood's top ETFs are a great place to start if you're new to investing. The Vanguard 500 Index Fund ETF (VOO) is the most popular ETF on Robinhood, and it's also the third-biggest ETF in the world based on assets under management.

VOO has an extremely low expense ratio of 0.03%, making it a very cost-effective option. The ETF tracks the S&P 500 index, which includes 500 of the largest publicly traded U.S. companies.

SPDR S&P 500 ETF Trust (SPY) is the second most popular ETF on Robinhood, and it's the biggest on the market with over $380 billion in assets under management. It also tracks the S&P 500 index.

Vanguard's Total Stock Market Index Fund ETF (VTI) comes in at number three, and it's the fourth-largest ETF based on assets under management. It tracks the performance of the CRSP US Total Market Index, which includes nearly 4,000 stocks that trade in the U.S.

All three of these ETFs have low expense ratios, ranging from 0.03% to 0.0945%. This means you'll pay less in fees and get to keep more of your investment returns.

Index ETFs are a popular choice for investors, and for good reason. They offer broad diversification and often track a specific market index, such as the S&P 500.

One of the biggest benefits of index ETFs is that they hold a large number of stocks, making them a low-risk investment. Vanguard S&P 500 ETF (NYSE:VOO) is a great example of this, holding 500 of the largest firms in the US based on market capitalization.

A key feature of these ETFs is that they hold each stock in almost the same proportion as its corresponding weightage on the index. This means that if you invest in Vanguard S&P 500 ETF (NYSE:VOO), you'll own a tiny piece of Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and all the other companies in the S&P 500 Index.

For instance, at the end of the fourth quarter of 2021, 134 hedge funds in the database of Insider Monkey held stakes worth $186 billion in Apple Inc. (NASDAQ:AAPL), a diversified technology company headquartered in California.

The iShares S&P 500 Growth Index is a popular choice among investors, and for good reason. It's a well-diversified portfolio of growth-oriented stocks in the S&P 500.

The index uses three growth characteristics to select stocks: three-year change in earnings per share divided by the price per share, three-year sales-per-share growth rate, and 12-month price change.

The iShares S&P 500 Growth ETF (IVW) tracks this index and has a median market cap of $741 billion, making it significantly higher than its large-cap growth peers and its benchmark.

IVW has a reported turnover of 31%, which means it turns the entire portfolio once every three years.

The top three sectors by weighting in IVW are technology (50%), consumer discretionary (14%), and communication services (12%).

Here's a breakdown of the top holdings in IVW:

IVW has averaged an annualized return of about 7.9% since its inception, making it a solid choice for long-term investors.

The iShares Silver Trust (SLV) is an exchange-traded fund that tracks the price performance of the underlying holdings in the LMBA Silver Price.

It has over $13.2 billion in assets under management, making it a significant player in the market.

The fund was initiated in 2006 and has generated an average annual total return of around 4.5% since then.

This fund represents silver and can serve as a hedge against inflation, which is a valuable feature for investors.

JPMorgan is the custodian institution of the fund, providing an added layer of security and stability.

Sector ETFs offer a way to invest in specific industries or sectors, such as technology or healthcare.

The XLP Consumer Staples ETF is a popular choice for investors looking to diversify their portfolios with a focus on essential goods and services.

This sector ETF tracks the S&P 500 Consumer Staples Index, giving investors exposure to companies like Procter & Gamble and Coca-Cola.

Sector ETFs like XLP are often less volatile than broader market ETFs, making them a good option for risk-averse investors.

The ARK Innovation ETF (NYSE:ARKK) is an exchange traded fund that invests at least 65% of its net assets in securities relevant to the disruptive innovation theme of the fund.

This fund can invest in both domestic and foreign securities, and it's a non-diversified fund, meaning it can invest in a smaller number of stocks.

It invests in developed as well as emerging markets, giving it a broad range of investment opportunities.

A key holding of the ARK Innovation ETF (NYSE:ARKK) is Tesla, Inc. (NASDAQ:TSLA), an electric vehicle and clean energy firm.

At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc. (NASDAQ:TSLA), up from 60 in the previous quarter worth $10.6 billion.

ClearBridge Investments, an investment management firm, highlighted Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter, noting that it bucked the headwinds among emerging growth names with continued sales momentum from its leadership positions in electric vehicles.

Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares is an exchange traded fund that tracks the investment returns of a group of stocks from the oil and gas exploration and production sector.

This fund invests at least 80% of its net assets in these securities.

It holds a large stake in Devon Energy Corporation, an independent energy firm, which is also a popular stock among retail traders on Robinhood Markets, Inc.

Devon Energy Corporation is one of the stocks that retail traders on Robinhood Markets, Inc. are buying, alongside other well-known companies like NVIDIA Corporation, PayPal Holdings, Inc., and Snap Inc.

GQG Partners, a Florida-based investment firm, is a leading shareholder in Devon Energy Corporation with 14.5 million shares worth more than $638 million.

Devon Energy Corporation was also highlighted by GoodHaven Capital Management in its Q4 2020 investor letter as one of the fund's energy holdings, which rebounded materially in the last six months.