About this video

• Video Title: 5 Best ETFs to Beat VOO and QQQ And Make You Rich!!
• Channel: The Frugal Expat
• Speakers: Steve (implied, as he runs The Frugal Expat website)
• Duration: 17:14

Overview

This video introduces five Exchange Traded Funds (ETFs) that aim to provide higher returns than the S&P 500 (VOO) and NASDAQ 100 (QQQ). The speaker emphasizes that these ETFs are for investors seeking more aggressive growth and are willing to take on more risk. Each ETF is discussed with its strategy, holdings, expense ratio, and historical performance, along with potential risks.

Key takeaways

• SPMO (Invesco S&P 500 Momentum ETF): This ETF focuses on the top 100 performing S&P 500 companies, rotating holdings every 6-12 months to capture market momentum. It has shown strong performance, outperforming QQQ in recent years, with a low expense ratio of 0.13%.
• QTUM (Defiance Quantum ETF): This ETF invests in companies involved in quantum computing, including those in chips, software, and related technologies. Despite a higher expense ratio (0.40%), it has demonstrated strong historical returns, averaging 26.98% over the last 5 years, but comes with higher volatility.
• SMH (Van Eck Semiconductor ETF): This ETF focuses on companies within the semiconductor industry, including major players in AI chip design and manufacturing. It has a long history and has shown impressive long-term performance, with a 10-year average return of 30.12% and a 5-year average of 31.13%.
• VGT (Vanguard Information Technology ETF): This broad technology ETF, established in 2004, covers large, mid, and small-cap companies across hardware, semiconductors, and software. It boasts a very low expense ratio (0.09%) and has delivered consistent long-term growth, outperforming QQQ.
• SHLD (Global X Defense ETF): This ETF invests in companies involved in defense and related technologies, such as autonomous drones, cybersecurity, and advanced manufacturing. While it has a higher expense ratio (0.50%) and is relatively new, it has shown exceptional performance in the last two years (61.75% annualized return) and is considered potentially recession-proof due to consistent defense spending.