Core Viewpoint - The S&P 500 is a strong long-term investment, but there are ETFs that are expected to outperform it in the coming year [1][2] Group 1: iShares Russell 2000 ETF - The S&P 500 has significantly outperformed the Russell 2000 index since the end of 2022, nearly doubling its gains [4] - The iShares Russell 2000 ETF is expected to outperform the S&P 500 in 2026 due to the broadening of gains in a maturing bull market [6] - The Russell 2000 ETF is currently trading at a price-to-earnings ratio of 18.3, which is nearly 40% cheaper than the Vanguard S&P 500 ETF at 28.7 [7] Group 2: VanEck Semiconductor ETF - The VanEck Semiconductor ETF has increased by 44% year-to-date, significantly outperforming the S&P 500 [9] - Over the last decade, the VanEck Semiconductor ETF has surged by 1,180%, driven by the booming semiconductor sector [9] - The ETF is well-positioned for continued success, trading at a P/E ratio of 39.7, comparable to other tech-heavy ETFs [10] - Key holdings in the VanEck Semiconductor ETF include leading companies in the AI boom, such as Nvidia and Taiwan Semiconductor, which are experiencing substantial revenue growth [11]
2 ETFs That Are Good Bets To Beat the S&P 500 in 2026
The Motley Fool·2025-12-18 06:30