These funds have outperformed the S&P 500 for the past five years

Investors looking to beat the market often turn to actively managed mutual funds and exchange-traded funds (ETFs) that have a track record of delivering superior returns. Over the past five years, several funds have consistently outperformed the S&P 500, making them attractive options for those seeking growth beyond the index. Here are a few notable examples:

AQR Absolute Return Strategy

Managed by AQR, this hedge fund has delivered an impressive average annual return of 21.1% over the past five years, significantly surpassing the S&P 500’s performance. The fund employs a diversified, quantitative approach to achieve strong risk-adjusted returns, making it a standout in the alternative investment space.

T. Rowe Price Science & Technology Fund

With a strong focus on innovation-driven companies, the T. Rowe Price Science & Technology Fund posted an extraordinary 40.3% return in 2024, far exceeding the S&P 500’s 23% gain for the same year. This fund has benefited from exposure to leading technology firms, positioning it well for continued growth.

Permanent Portfolio Aggressive Growth Fund

Led by Michael Cuggino, the Permanent Portfolio Aggressive Growth Fund has delivered average annual returns of 13.28% over the past decade, slightly outperforming the S&P 500’s 13.1% average. By maintaining a diverse asset mix and a long-term investment approach, this fund has demonstrated steady growth with competitive performance.

Cambria Shareholder Yield ETF (SYLD)

This actively managed ETF focuses on companies that prioritize shareholder value through debt reduction, dividends, and share buybacks. The Cambria Shareholder Yield ETF (SYLD) has outperformed the Vanguard S&P 500 ETF, earning a five-star rating from Morningstar. Its emphasis on financially sound companies makes it a compelling choice for investors seeking both income and growth.

Final Thoughts

While the S&P 500 remains a benchmark for broad market performance, these funds and ETFs have proven that strategic investment approaches can generate superior returns. Investors looking for opportunities beyond index investing may find these options worth considering, though due diligence and risk assessment remain crucial before making investment decisions.