CHAT and SOXX: The 2 Growth ETFs That Could Outperform VOO Over the Next Decade

"With its rock-bottom management fees and diversification across roughly 500 stocks throughout multiple market sectors, the Vanguard S&P 500 ETF ( NYSEARCA:VOO) is often considered a gold-standard exchange traded fund (ETF). However, if you're looking to beat this S&P 500 tracking fund, there are a couple of technology-centered growth ETFs with market-beating potential. Two tech funds poised for explosive growth are the Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT) and the iShares Semiconductor ETF ( NASDAQ:SOXX)."

"It's understandable that many investors are attracted to the VOO ETF's multi-sector diversification and 0.03% expense ratio (i.e., annual management fees). In contrast, the Roundhill Generative AI & Technology ETF only has 38 assets in its holdings list and carries a much higher 0.75% expense ratio. In other words, the CHAT ETF deducts higher management fees and provides much narrower sector breadth."

The Vanguard S&P 500 ETF (VOO) offers broad diversification across roughly 500 stocks and a very low 0.03% expense ratio, plus a modest dividend yield around 1%. The Roundhill Generative AI & Technology ETF (CHAT) concentrates on AI-forward firms, holds only 38 assets, charges a 0.75% fee, and pays no dividends. The iShares Semiconductor ETF (SOXX) emphasizes semiconductor-sector allocations that have strong growth drivers in the 2020s. CHAT and SOXX both target technology-driven growth and could outperform VOO over a 10-year horizon despite higher fees and narrower sector exposure.

Read at 24/7 Wall St.