Exchange-traded funds (ETFs) come in all shapes and sizes, depending on your investing interests. And their performances vary somewhat as a result. If you had invested $10,000 in the relatively narrow-focused Invesco QQQ ETF (NASDAQ: QQQ) a decade ago, you’d have about $60,000 today. Compare that to the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a broader S&P 500 index-focused fund. Had you invested $10,000 in this ETF a decade ago, you’d have over $36,000 today.
Both funds performed well during that time span. But one of the most important rules of investing is that past results don’t necessarily indicate future performance.
So which of these ETFs is the better buy in 2021? Let’s dive right in and see if we can answer that question.