Why buy expensive mutual funds that underperform the market when you can purchase low-cost ETFs that track the market’s performance? 

The logic behind this question is one of the fundamental reasons why ETFs have now become very popular. 

“The growth in exchange-traded funds (ETFs) has been the single most disruptive trend within the asset management industry over the last 20 years,” according to Oliver Wyman, a management consulting firm. 

Their liquidity, intra-day trading, accessibility, transparency, tax efficiency, and low expense ratios have also made them preferable to index funds, their passive investing counterpart. 

However, the irony is that there are now so many ETFs that investors are sometimes confused about the best ETF to invest in. With more than 14,000 ETFs across various categories, according to BlackRock, a financial services firm, the options are endless. 

In this article, we will highlight 25 of the best ETFs in terms of USD performance over the past five years. Though past performance does not guarantee future performance, this list gives you a starting point for your research into the best ETFs to buy now. 

(Disclaimer: We have focused on ETFs from the most popular ETF providers and with significant assets under management (AUM). We have also avoided those based on derivatives, given that they are higher-risk strategies for the average investor. Past performance does not guarantee future returns.) 

With that out of the way, let’s get started. 

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1. iShares Silver Trust (SLV)

Overview

SLV is an ETF that invests in physical silver (silver bullion). It provides direct exposure to silver’s price movements for investors who don’t want to worry about the storage and safekeeping of their silver assets. 

Each share of SLV represents an investment in the underlying silver holdings. You can sell your shares for fiat currency instead of redeeming silver bars or coins. 

Key highlights

• 5-year returns (as of January 16, 2026): 227.52%
• Expense ratio or fund management fee: 0.50%
• AUM: $41.06 billion
• Number of holdings: N/A
• Issuer: BlackRock

Best for

Investing in silver is a good idea if you want to diversify your portfolio, specifically if you want to take advantage of its industrial use cases, as well as protect your portfolio during market downturns.

2. VanEck Gold Miners ETF (GDX)

Overview

GDX is a gold ETF that invests in the stocks of various gold mining companies. It originally focused exclusively on US gold miners but has now expanded its reach to global gold miners. 

Key highlights

• 5-year returns (as of January 16, 2026): 165.89%
• Dividend yield: 0.6%
• Expense ratio: 0.51%
• AUM: $27.81 billion
• Number of holdings: 49
• Issuer: Van Eck Associates Corporation

Best for

Knowing how to invest in gold ETFs in the UAE is a good way to diversify your traditional portfolio and also protect it during market downturns and economic uncertainty.

3. iShares Gold Trust (IAU)

Overview

IAU is a gold ETF that invests directly in physical gold. Each share of the ETF’s net asset value (NAV) represents exposure to physical gold stored by the fund and can be redeemed for fiat currency by investors. 

Key highlights

• 5-year returns (as of January 16, 2026): 144.88%
• Expense ratio: 0.25%
• AUM: $71.03 billion
• Number of holdings: N/A
• Issuer: BlackRock

Best for

IAU provides direct exposure to gold’s price. Precious metals like gold are a good way to diversify and hedge traditional portfolios.

4. WisdomTree U.S. Quality Growth Fund (QGRW)

Overview

QGRW is an ETF that invests in S&P 500 companies with high-growth and sound fundamentals (quality). It measures growth by earnings insight and trailing 5-year EBITDA and sales growth, and quality by the three-year average return on equity and return on assets.

Key highlights

• 5-year returns (as of January 16, 2026): 118.80%
• Expense ratio: 0.28%
• AUM: $2.18 billion
• Number of holdings: 101 
• Issuer: WisdomTree Inc. 

Best for

QGRW is best for growth investors who are also concerned about strong fundamentals. 

5. iShares Semiconductor ETF (SOXX)

Overview

What is the best technology ETF to invest in? 

If we focus on performance over the past five years, SOXX is one of the best ETFs in the broader technology sector. 

The ETF invests in semiconductor companies in the US, including chip designers, manufacturers, and distributors. 

Key highlights

• 5-year returns (as of January 16, 2026): 142.32%
• Expense ratio: 0.34%
• AUM: $19.26 billion
• Number of holdings: 31 
• Issuer: BlackRock 

Best for

SOXX is best for thematic investing in the semiconductor industry. Given the AI revolution that is underway, the semiconductor industry holds a lot of promise for investors. 

6. iShares U.S. Technology ETF (IYW)

Overview

IYW is an ETF that invests in companies in the US technology sector. Unlike SOXX, which invests in a single industry, IYW invests across all industries within the sector. 

Key highlights

• 5-year returns (as of January 16, 2026): 136.07%
• Expense ratio: 0.38% 
• AUM: $21.08 billion
• Number of holdings: 143 
• Issuer: BlackRock

Best for

IYW is best for gaining exposure to the broader technology sector. 

7. iShares MSCI Global Silver Miners ETF (SLVP)

Overview

SLVP invests in silver mining companies in both developed and emerging markets. A company only needs to earn a majority of its revenue from silver, rather than silver being its only revenue source, to be included in the fund. 

Key highlights

• 5-year returns (as of January 16, 2026): 134.65%
• Expense ratio: 0.39%
• AUM: $918.66 million
• Number of holdings: 32
• Issuer: BlackRock

Best for

SLVP is best for indirect exposure to silver. Investors who want exposure to the industrial and earnings drivers behind silver production may prefer SLVP over SLV.

8. Vanguard Energy ETF (VDE)

Overview

What is the best Vanguard ETF? 

Over the past five years, VDE has provided the best returns, making it a go-to for thematic investors. It is an ETF that invests in companies operating in the US energy sector.

Key highlights

• 5-year returns (as of January 16, 2026): 116.35%
• Expense ratio: 0.09%
• AUM: $7.32 billion
• Number of holdings: 111
• Issuer: The Vanguard Group Inc.

Best for

VDE is best for investing in the energy sector. Though it is not a dividend ETF, it has a high dividend yield (2.25%) that can be attractive to income-focused investors. 

9. Invesco S&P 500 Top 50 ETF (XLG)

Overview

XLG is an ETF that invests in the top 50 (by market capitalisation) companies listed on the S&P 500 Index. It is often less volatile than ETFs tracking the entire S&P 500 Index, by reducing exposure to mid-cap companies.

Key highlights

• 5-year returns (as of January 16, 2026): 110.60%
• Expense ratio: 0.20% 
• AUM: $11.61 billion
• Number of holdings: 52
• Issuer: Invesco Capital Management

Best for

XLG is best for investors seeking low-volatility exposure to large-cap US companies. 

10. Vanguard Mega Cap Growth ETF (MGK)

Overview

MGK is a growth ETF that invests in the largest (by market capitalisation) growth companies in the US. To qualify, a stock must have: 

• future long-term growth in earnings per share (EPS)
• future short-term growth in EPS
• three-year historical growth in EPS
• three-year historical growth in sales per share, current investment-to-assets ratio, and return on assets

Key highlights

• 5-year returns (as of January 16, 2026): 105.92%
• Expense ratio: 0.07%
• AUM: $32.25 billion
• Number of holdings: 69
• Issuer: The Vanguard Group Inc.

Best for

MGK is best for growth-oriented investors who also want the stability of large-cap companies. 

11. iShares Global 100 ETF (IOO)

Overview

IOO invests in the 100 largest (by market cap) members of the S&P Global 1200 Index. This is an index of global companies across the United States, developed markets outside the US, and emerging markets in Latin America and Asia.  

Key highlights

• 5-year returns (as of January 16, 2026): 103.01%
• Expense ratio: 0.40%
• AUM: $8.13 billion
• Number of holdings: 104
• Issuer: BlackRock

Best for

IOO is best for investors seeking global diversification but without exposure to mid-cap or small-cap stocks. 

12. Invesco NASDAQ 100 ETF (QQQM)

Overview

QQQM invests in the largest 100 companies listed on the NASDAQ stock exchange. It includes domestic and international stocks across all sectors, except the financial sector. 

It is the version of the popular Invesco QQQ Trust (QQQ) that is more appropriate for buy-and-hold investors due to a lower expense ratio. 

Key highlights

• 5-year returns (as of January 16, 2026): 99.74%
• Expense ratio: 0.15%
• AUM: $71.05 billion
• Number of holdings: 104
• Issuer: Invesco Capital Management 

Best for

QQQM is best for exposure to the top large-cap companies on NASDAQ. Since NASDAQ is skewed towards innovative technology companies, QQQM is a way to invest in the most stable of them. 

13. Vanguard Russell 1000 Growth ETF (VONG)

Overview

VONG invests in components of the Russell 1000 index that exhibit growth characteristics. The Russell 1000 Index tracks large-cap companies, so VONG is a way to gain exposure to the most stable growth companies in the US. 

Key highlights

• 5-year returns (as of January 16, 2026): 98.54% 
• Expense ratio: 0.07%
• AUM: $36.39 billion
• Number of holdings: 394
• Issuer: The Vanguard Group Inc. 

Best for

VONG is best for investing in stable growth companies. 

14. Vanguard S&P 500 Growth ETF (VOOG)

Overview

VOOG invests in growth companies in the S&P 500 Index. 

Key highlights

• 5-year returns (as of January 16, 2026): 96.52%
• Expense ratio: 0.07%
• AUM: $22.39 billion
• Number of holdings: 219 
• Issuer: The Vanguard Group Inc. 

Best for

VOOG is best for investing in stable growth companies. 

15. Vanguard Growth ETF (VUG)

Overview

VUG tracks the CRSP US Large Cap Growth Index, an index of all large-cap growth stocks in the US. Unlike VOOG, it does not restrict itself to the S&P 500 Index.  

Key highlights

• 5-year returns (as of January 16, 2026): 94.75%
• Expense ratio: 0.04%
• AUM: $204.53 billion
• Number of holdings: 163
• Issuer: The Vanguard Group Inc. 

Best for

VUG is best for investing in large-cap growth stocks. 

16. State Street SPDR S&P 500 ESG ETF (EFIV)

Overview

EFIV is an ETF that invests in the constituents of the S&P 500 Index that are ESG-compliant (Environmental, Social and Governance standards). It also seeks to maintain the same risk-return profile as the S&P 500 Index.  

Key highlights

• 5-year returns (as of January 16, 2026): 91.02%
• Expense ratio: 0.10%
• AUM: $1.16 billion
• Number of holdings: 314
• Issuer: State Street Corporation

Best for

EFIV is best for principles-based investors who prioritise ESG-compliant businesses. 

17. iShares U.S. Financials ETF (IYF)

Overview

IYF invests in companies operating in the US financial sector. 

Key highlights

• 5-year returns (as of January 16, 2026): 90.43%
• Expense ratio: 0.38%
• AUM: $4.30 billion
• Number of holdings: 143
• Issuer: BlackRock

Best for

IYF is best for investing in the financial sector. 

18. Invesco Galaxy Bitcoin ETF (BTCO)

Overview

BTCO is an ETF that invests in Bitcoin. Each share in the fund is backed by Bitcoin that is held in cold storage. It provides an easy way to invest in Bitcoin without the complexities of using a digital asset platform and managing wallets. 

Key highlights

• 5-year returns (as of January 16, 2026): 89.30%
• Expense ratio: 0.25%
• AUM: $583.80 million
• Number of holdings: N/A
• Issuer: Invesco Capital Management

Best for

BTCO is best for increasing the risk-adjusted returns of a traditional portfolio with exposure to Bitcoin. 

19. iShares Core S&P 500 ETF (IVV)

Overview

Investment experts often recommend that average investors stick to investing in the S&P 500 Index. Thus, the best ETF to invest in for most investors is a pure S&P 500 ETF. 

IVV is the best S&P 500 ETF based on performance over the past five years. 

Key highlights

• 5-year returns (as of January 16, 2026): 82.29%
• Expense ratio: 0.03%
• AUM: $774.84 billion
• Number of holdings: 504
• Issuer: BlackRock

Best for

IVV is best suited for investing in the S&P 500 Index, the most widely recognised index in the United States. 

20. Invesco MSCI USA ETF (PBUS)

Overview

PBUS is a large-cap and mid-cap ETF that invests in large-cap and mid-cap stocks listed in the US. Its index – the MSCI USA Index – is broader than the S&P 500 Index but narrower than the Russell 3000 Index. 

Key highlights

• 5-year returns (as of January 16, 2026): 79.97%
• Expense ratio: 0.04%
• AUM: $10.90 billion
• Number of holdings: 547 
• Issuer: Invesco Capital Management

Best for

PBUS is best for exposure to both large-cap and mid-cap US stocks. 

21. Vanguard Large-Cap ETF (VV)

Overview

VV is an equity ETF that provides broad exposure to large-cap equities in the US (broader than the S&P 500 Index). It tracks the CRSP US Large Cap Index, which represents about 85% of the US stock market by market cap. 

Key highlights

• 5-year returns (as of January 16, 2026): 79.96%
• Expense ratio: 0.04%
• AUM: $48.04 billion 
• Number of holdings: 456
• Issuer: The Vanguard Group Inc. 

Best for

VV is best for larger exposure to large-cap stocks than what the S&P 500 Index provides. 

22. Vanguard Industrials ETF (VIS)

Overview

VIS is an ETF that invests in companies operating in the industrial sector in the US.  

Key highlights

• 5-year returns (as of January 16, 2026): 79.92% 
• Expense ratio: 0.09%
• AUM: $6.80 billion
• Number of holdings: 393  
• Issuer: The Vanguard Group Inc. 

Best for

VIS is best for investing in the industrial sector. 

23. JPMorgan U.S. Quality Factor ETF (JQUA)

Overview

JQUA is an ETF that invests in companies that meet some profitability, quality of earnings, and solvency metrics. It seeks to focus on large-cap companies with strong fundamentals. 

Key highlights

• 5-year returns (as of January 16, 2026): 78.08% 
• Expense ratio: 0.12% 
• AUM: $7.73 billion
• Number of holdings: 292 
• Issuer: JP Morgan Chase and Co

Best for

JQUA is best for investors who want to focus on strong fundamentals rather than just value or growth. 

24. Fidelity Value Factor ETF (FVAL)

Overview

FVAL tracks the Fidelity US Value Factor Index. This index selects companies with high free-cash-flow yield, low enterprise-value-to-EBITDA, low price-to-tangible-book-value, and low price-to-future-earnings among the 1,000 largest (by market cap) US stocks. 

For value investors, it is one of the best ETFs to buy now. 

Key highlights

• 5-year returns (as of January 16, 2026): 77.92% 
• Expense ratio: 0.15%
• AUM: $1.13 billion
• Number of holdings: 129 
• Issuer: Fidelity Investments

Best for

FVAL is best for value investors. 

25. Schwab 1000 Index ETF (SCHK)

Overview

SCHK is an index ETF that provides exposure to the 1,000 largest companies (by market cap) in the US. Its constituents include large-cap and mid-cap companies. 

Key highlights

• 5-year returns (as of January 16, 2026): 75.11%
• Expense ratio: 0.03%
• AUM: $4.97 billion
• Number of holdings: 996
• Issuer: Charles Schwab Corporation

Best for

SCHK is best for investors interested in broad exposure to large-cap and mid-cap companies in the US. 

How to invest in the best ETFs in the UAE

What are the best ETFs to invest in in 2026? The above list of the top 25 performers over the past 5 years is a good place to start your research. 

If you are in the UAE and are ready to invest in the best ETFs, you can do so seamlessly through Sarwa. 

At Sarwa, we provide you with access to stock, REIT, gold, silver, cryptocurrencies, and bond ETFs listed in the US, as well as a local UAE stock ETF. 

You can build your portfolio of ETFs across different asset classes, investment approaches (value, growth, and quality), market cap (large, mid, small), regions (US, developed markets, and emerging markets), industries (healthcare, industrials, technology, and financials, etc.), and themes (artificial intelligence, blockchain technology, and climate change, etc.).

We charge low commissions ($1 or 0.25% of traded value), allow fractional trading, and protect your data and money with bank-level SSL security. We also offer free transfers between your local bank accounts and brokerage accounts. And you can get started with just $500. 

If you prefer a hands-off approach, you can sign up for Sarwa Invest, our managed investment platform. 

Our wealth advisors will create a diversified and personalised portfolio of ETFs that matches your investment goals, time horizon, and risk tolerance. All you need to do is keep adding money to your portfolio every month. 

Are you ready to build wealth in the UAE by investing in the best  ETFs? Sign up now for Sarwa for cost-effective and secure passive and active investing in the UAE. Unsure where to begin? Schedule a free call with a Sarwa wealth advisor. 

Takeaways

• Low costs, transparency, and strong long-term performance have made ETFs a preferred alternative to expensive, underperforming mutual funds.
• What is the best ETF to buy? One way to answer this question is to consider the best-performing ETFs in the past. 
• The best five-year performers include commodities (gold, silver), technology, energy, crypto, and broad-market equities.
• From growth and value to ESG, quality, and sector-specific strategies, ETF selection should align with risk tolerance and investment objectives.