2 ETFs That Are Good Bets to Beat the S&P 500 in 2026

Core Insights - The S&P 500 index serves as a benchmark for the U.S. stock market, comprising around 500 of the largest U.S. companies and offering sector diversification [1] - The index is market capitalization-weighted, meaning larger companies have a greater impact on its performance, exemplified by the influence of companies like Nvidia [2] - The S&P 500 has delivered an average annual return of over 14.6% over the past decade, with only about 14% of actively managed funds outperforming it during this period [3] Investment Opportunities - The Invesco QQQ Trust is expected to outperform the S&P 500 in 2026, driven by the continued strength of growth stocks and the early stages of artificial intelligence [4] - The QQQ Trust tracks the Nasdaq 100 index, which includes the 100 largest non-financial companies on the Nasdaq, predominantly featuring tech stocks (over 64%) [5] - The QQQ Trust has achieved an average annual return of 19.6% over the past decade and has outperformed the S&P 500 nearly 88% of the time on a rolling 12-month basis, indicating consistent performance [7] - The Global X Artificial Intelligence & Technology ETF is also highlighted as a potential outperformer in the upcoming year [8]