Better Than VOO? 9 Absolute BEST ETFs of the Decade (History is Repeating!)

Investing Simplified - Professor G•Apr 8, 2026

Summary

Nolan presents a comprehensive guide to building a core investment portfolio by evaluating ETFs with at least ten years of history. His central thesis is that while past performance does not guarantee future results, a decade-long track record reveals how a fund handles volatility and market recoveries. He categorizes the ETFs by their average annual returns to help investors simplify their strategy and choose positions that align with their risk tolerance.

Nolan's market outlook is particularly bullish on US-based growth sectors, specifically technology and momentum strategies, which have historically outperformed broad market indices. He notes that even for conservative investors or retirees, a small allocation to high-growth sectors like the Nasdaq-100 can be beneficial. He also emphasizes the value of dividend-focused ETFs like SCHD for providing a balance of cash flow and stability without sacrificing significant total returns.

VXUS: This fund offers broad exposure to over 8,000 companies in international developed and emerging markets, serving as a hedge against US market underperformance. It has a very low expense ratio of 0.05% and a 10-year average annual return of 8.36%. Nolan recommends it for diversification beyond the domestic market.

VT: The Vanguard Total World Stock ETF provides a 'set it and forget it' solution by owning over 9,000 stocks globally, including the US. It has a 10-year average return of 11.93% and a low fee of 0.06%. Nolan points out that because it is market-cap weighted, it remains heavily concentrated in large US companies.

SCHD: This dividend ETF is one of Nolan's favorites, yielding nearly 4% while maintaining a solid 10-year average total return of 12.23%. He argues it is an excellent choice for investors seeking lower volatility and consistent cash flow from high-quality US companies. It targets 100 companies with sustainable dividend growth records.

VTI: Nolan considers the Total US Stock Market ETF a portfolio staple because it includes mega-caps, mid-caps, and small-caps in one tax-efficient fund. It has delivered a 14.66% average annual return over the last decade with a minimal fee of 0.03%. It represents a comprehensive bet on the entire investable US equity market.

VOO: Nolan prefers the S&P 500 fund over VTI because it is incentivized to hold only the 500 largest and most successful companies. It has slightly outperformed the total market with a 15.26% 10-year average return and shares the same low 0.03% fee. Underperforming companies are regularly removed and replaced by stronger performers within this index.

SPMO: This momentum-focused ETF targets the top 100 stocks in the S&P 500 with the strongest price trends over the past year. Nolan is currently adding heavily to this position, noting its impressive 18.51% average return. The fund reconstitutes semi-annually to ensure it continues to 'ride the winners' in the market.

QQQ/QQQM: Tracking the Nasdaq 100, this fund provides concentrated exposure to high-growth sectors like technology and communication services. It has returned an average of 20.32% annually over the last decade, making it a favorite for long-term growth. Nolan suggests even retirees might consider a small allocation due to the continued advancement of technology.

VGT: For investors seeking pure technology exposure, Nolan highlights this fund which covers over 300 software, hardware, and semiconductor companies. It has achieved an exceptional 22.96% average annual return over the last ten years with a low 0.09% fee. It carries higher volatility but has historically offered substantial rewards.

SMH: This semiconductor ETF is the top performer on Nolan's list with a 10-year average annual return of 33.27%. He views it as the backbone of the AI era and regrets not investing in it sooner, though he is considering adding it now. Despite having the highest fee at 0.35%, its growth has significantly outpaced all other ETFs mentioned.

Mentioned Stocks

VOO

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan prefers the S&P 500 for its selection of only the largest, most successful companies. It has outperformed VTI slightly with a 15.26% 10-year average return.

Loading chart...

QQQ

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan recommends this for long-term growth and innovation exposure. It has an impressive 20.32% average 10-year return and targets the largest non-financial Nasdaq companies.

Loading chart...

VGT

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan highlights VGT for pure technology exposure. It has an exceptional 22.96% 10-year average return, focusing on software, hardware, and semiconductors.

Loading chart...

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan views this as a simple 'set it and forget it' global solution. It offers exposure to the entire world with an 11.93% 10-year average return.

Loading chart...

SMH

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan describes this as the best performer with a 33.27% 10-year average return. He identifies it as the backbone of AI and is considering adding it to his portfolio soon.

Loading chart...

VTI

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan considers this a staple core position for owning the entire US equity market. It has a solid 14.66% 10-year average return and very low fees.

Loading chart...

SCHD

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan calls this ETF 'gold' due to its balance of 4% dividend yield and a 12.23% average annual return. He likes it for its lower volatility and high-quality company holdings.

Loading chart...

SPMO

Sentiment: BUYAction: BOUGHT

Reasoning: Nolan is currently adding to this ETF 'very heavy.' He favors its momentum strategy of buying winning stocks, which has yielded an 18.51% average annual return.

Loading chart...

VXUS

Sentiment: BUYAction: RECOMMENDED

Reasoning: Nolan recommends this ETF for international diversification and as a hedge against the US market. It captures over 8,000 companies with a low 0.05% fee and an 8.36% 10-year average return.

Loading chart...