Your Weekly

Investor Update

Thursday, February 12, 2026

The Categories and ETFs With the Highest 10-Year Returns

By Charles Rotblut, CFA

A few AAII members asked us which categories and funds have performed best over the last 10 years. I discuss both the categories and exchange-traded funds (ETFs) with the highest 10-year annualized returns below.

I chose to use ETFs instead of mutual funds because there are proportionately more index funds in the ETF space. This is particularly the case when we narrow down the field to only those funds with 10-year track records. In contrast, the majority of mutual funds with 10-year records are actively managed. Studies of active managers have shown that outperformance is not persistent.

The digital assets category has the highest 10-year performance, with an annualized return of 68.5% through January 2026. The big return masks the roller-coaster ride investors would have had to stay on.

This is evident in the columns of the table I provided. The variance in the one-, three- and five-year returns relative to the 10-year annualized return illustrates how much individual-year returns have swung. Total risk looks only at the most recent three years, but it offers a sense of the category’s volatility relative to other categories. A risk score of 1.00 indicates average volatility. A score of 7.90 implies that you would have needed more than one dose of your preferred stomach medicine while holding one of the category's funds.

What Members Are Following on AAII.com

Understanding and Evaluating Digital-Asset Mutual Funds and ETFs
ETFs, and mutual funds to a limited extent, pave the way for individual investors to gain exposure to cryptocurrency and other securities in the digital-asset ecosystem.

Comparing Funds That Track the Same Index
Although index ETFs and mutual funds seek to mimic the composition and performance of an index, they are usually not exact copies of the index itself.

Asset Class Returns: Highest Returns for International Stocks Since 2012
Developed country stocks saw their returns bounce back in a big way last year, as shown in the February 2026 AAII Journal.

AAII Sentiment Survey 

 Not a full-fledged AAII Member yet? 

AAII is a nonprofit association dedicated to helping our members achieve investing knowledge and wealth. Membership provides you with the tools, resources and education needed to become a better investor. We cover stocks and funds, financial planning, asset allocation, investing basics, taxation, investment analysis and many other important areas. You can join AAII right now for the low trial price of just $2.

 Investor Update Archives