3 ETFs That Are Better Than the S&P 500 for Long-Term Returns

"The S&P 500 is the most well-known benchmark, and buying an ETF focused on this index could have yielded good long-term returns. However, investors can boost their returns by testing the waters and putting their money into ETFs that show more promise. The weakness of indices like the S&P 500 is that they contain a bunch of declining companies, but a few winners prop up the benchmark."

"The CoinShares Bitcoin Mining ETF ( NASDAQ:WGMI) gives investors exposure to crypto miners, many of which have pivoted to AI infrastructure. This trend is a relatively new one, but it is gaining a lot of momentum. The fund is up by more than 20% year-to-date and has more than doubled over the past year. Those gains make up for its 0.75% expense ratio."

"WGMI only has 23 stocks, with IREN ( NASDAQ:IREN) and Cipher Mining ( NASDAQ:CIFR) making up almost 40% of its total assets. These companies have been landing lucrative big tech deals as the need for AI data centers becomes more apparent. While AI chips have been the bottleneck for years, tech companies now need AI data centers and power to actually use those chips. That's where IREN, Cipher Mining, and other pivoting crypto miners deliver."

The S&P 500 is the most well-known benchmark, and buying an ETF focused on this index could have yielded good long-term returns. Investors can boost returns by allocating capital to ETFs that trim weaker holdings and concentrate on long-term winners. The CoinShares Bitcoin Mining ETF (NASDAQ:WGMI) provides exposure to crypto miners pivoting to AI infrastructure and has risen over 20% year-to-date and more than doubled over the past year, offsetting its 0.75% expense ratio. WGMI holds 23 stocks, with IREN and Cipher Mining representing nearly 40% and benefiting from demand for AI data centers and power. The heavy sector concentration requires additional ETFs for diversification. Concentrated tech-focused funds, such as those holding the Magnificent Seven, provide more direct exposure to top performers and aim to outperform the broader S&P 500 over time.

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