Take the following funds, for instance: iShares Core S&P 500 ETF (LSE:CSPX), Franklin FTSE India UCITS ETF (LSE:FLXI), and VanEck Semiconductor ETF (NASDAQ:SMH). Between them, they’ve delivered an average annual return of 19.5% since November 2020%.

Want to know what makes them stock market winners?

Tapping US shares

The iShares Core S&P 500 fund proved one of the best ETFs out there for reliably high returns. There are are several good reasons behind its strong performance.

The US stock market has comfortably outperformed overseas shares for decades, and I’m confident it will continue doing so given the eternal appeal of Wall Street shares. With holdings in hundreds of multinational companies, it isn’t dependent on one sector or region to drive returns, either.

I also like the ETF’s enormous exposure to high-growth tech shares. Businesses like Nvidia, Apple, and Microsoft comprise roughly 36% of its stock holdings.

This can lead to extra volatility during downturns. Yet, as we’ve seen, it can also deliver outsized returns as the digital revolution rolls on. The fund has delivered an average yearly return of 17.3% since November 2015.

Looking to Asia

Investing in emerging market shares is another attractive wealth-building opportunity to consider. One I like is the Franklin FTSE India ETF, which — as the name implies — provides targeted exposure to Asia’s fastest-growing major economy.

Over the last half a decade, the fund has delivered an average annual return of 13.4%. It’s done so by providing exposure to large- and mid-cap companies like HDFC Bank, Bharti Airtel, Hindustan Unilever, and Sun Pharmaceutical.

As this list shows, the fund is also well diversified by sector, protecting it from industry-specific weaknesses. A bright outlook for India’s economy suggests it could keep outperforming — latest data showed national GDP growth accelerate to 8.2% during Q3.

Be mindful, though, that confidence in emerging market equities can be volatile. This in turn can have an impact on funds like this from time to time.

A top tech fund

Thanks chiefly to the artificial intelligence (AI) boom, the VanEck Semiconductor ETF has delivered a staggering 27.9% average annual return over five years.

Companies like Nvidia, Taiwan Semiconductor Manufacturing Co, and Broadcom are enjoying rocketing sales as AI adoption takes off. Nvidia’s latest results showed data centre revenues leap 66% during Q3.

But the uses of their products are far and wide, from smartphones and robotics to cloud computing and electric vehicles. These markets are also all tipped for rapid growth during the next decade.

A focus on cyclical semiconductor shares leaves the fund vulnerable to economic downturns. But it still means less risk to investors’ cash than purchasing individual stocks. I think the ETF can keep delivering high double-digit returns.

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Investors can choose from thousands of funds that match their investment goals and tolerance of risk. I myself own several in my Self-Invested Personal Pension (SIPP). And I’m looking for more that could deliver strong capital gains and a reliable dividend income I can reinvest for growth.

Here are two on my radar today. If they continue to deliver the returns of the last five years, they’ll turn a £500 monthly investment into an impressive £1.2m over the next 25 years.

Digging for huge returns

Mining is notoriously unpreditable and fraught with risk for companies. Exploration disappointments, project delays, and production outages can play havoc with profits forecasts and decimate share prices.

ETFs that invest in a basket of minerals producers don’t completely eliminate this threat. Operational problems at one major holding can substantially impact overall returns. But on balance, I think funds are far less risky than purchasing individual mining stocks.

I’m looking for a low-risk way to capitalise on a likely rise in copper prices over the next decade. And so I’m thinking of adding the Global X Copper Miners ETF (LSE:COPX) to my SIPP.

As the chart shows, the copper market faces substantial shortfalls in the coming years, which I believe could drive up prices:

In total, the fund holds shares in 40 red metal producers including First Quantum Minerals, Lundin Mining, and UK-listed share Antofagasta. Owning a fund that owns copper stocks instead of a fund that tracks metal prices can be more lucrative in bull markets — because copper miners have fixed costs, their profits grow faster than metal prices, delivering superior capital gains for investors.

This leverage effect means that, since August 2020, this Global X copper fund has delivered a healthy average annual return of 10%.

Emerging market opportunity

As well as boosting my copper market exposure, I’m looking to improve my exposure to emerging markets. For this reason, the Franklin FTSE India UCITS ETF (LSE:FLXI) is on my list of possible funds to buy.

India is the world’s fastest growing economy — the International Monetary Fund is tipping GDP growth of 6.5% in the next two years. And it has significant scope for breakneck long-term growth, driven by its booming population, robust private investment, and rapidly rising personal wealth levels.

These phenomena have already driven an average annual return of 17.1% for the Franklin FTSE India fund over the last five years.

I like this ETF because of its excellent diversification. In total, it holds shares in 263 companies, from HDFC Bank and Bharti Airtel to Tata Motors and Sun Pharmaceutical. This helps reduce risk and provide exposure to a wide range of growth and income opportunities.

Future performance could be impacted by US trade tariffs and reciprocal action from India’s government. But on balance, I think it’s another top fund for me to consider.

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But viewing such funds as merely risk-reduction tools would be doing them a grave injustice. Many ETFs have delivered long-term returns that leave countless FTSE 100 and FTSE 250 shares in the dust.

Take the following two ETFs I’m about to discuss. Combined, they’ve delivered an average annual return of 13.5% over the past five years.

Based on this, £20,000 invested equally across these funds in early 2020 would have almost doubled an investor’s money, generating a total return of £39,133.

Past performance is no guarantee of future returns, but here’s why I think they’re worth considering right now.

Security guard

Artificial intelligence (AI) isn’t the only hot tech trend in town. Companies involved in the field of cybersecurity also have terrific growth potential.

Data’s very much a 21st century currency, and modern societies are becoming increasingly reliant on technology to function and evolve. This makes protection against the growing number of online threats critical.

Analysts at Gartner think the global cybersecurity market will soar from $162bn in 2023 to more than $435bn by 2030. The trouble is that tipping specific winners in this field is tough, given the breakneck pace at which tech markets evolve.

The Global X Cybersecurity ETF (LSE:BUGG) — which has delivered an average annual return of 15.7% in the last five years — helps to reduce this threat. In total, it has holdings in 22 different software, services and hardware providers.

These range from big hitters such as CrowdStrike and Palo Alto to smaller ones with (arguably) greater growth potential like Telos.

There are drawbacks to purchasing focused ETFs like this. They often command higher management fees that can eat into shareholder returns. In this case, the total expense ratio is 0.5%, which is greater than that typically found on basic index trackers.

But on balance, I think that fee could be a small price to gain exposure to this high-growth tech sector.

Let’s be Frank

Targeting particular geographies can be an effective wealth-building strategy too. Franklin FTSE India ETF’s (LSE:FLXI) one country-specific fund whose recent performance has grabbed my attention.

This Franklin Templeton product — which invests in large- and mid-cap stocks in India — has delivered an 11.3% average annual return since early 2020.

The fund’s soared in value as India’s booming economy has supercharged corporate earnings. Such strong returns aren’t guaranteed in future, but a vibrant economic outlook bodes well for today’s investors.

Analysts at S&P expect India to become the world’s third biggest economy by 2030, with nominal GDP tipped to nearly double to around $7trn in that time.

While it provides excellent growth potential, this regional fund also provides higher risk than more global-based ETFs. However, its diversification across multiple cyclical and non-cyclical sectors can still help investors to effectively spread the risk.

Among the fund’s 246 holdings are HDFC Bank, IT specialist Infosys and telecoms provider Bharti Airtel.

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However, it needn’t be a laborious task. And if done effectively, the rewards can be considerable.

With the New Year underway, many UK savers and investors are seeking new ways to boost their ISAs. Here are two I think are worth serious consideration right now.

1. Focus on shares

I’m one of many people who own both a Cash ISA and a Stocks and Shares ISA. But the amount of money invested in the latter dwarfs what I have in the former.

Cash accounts are a great way to manage risk. But the better returns on offer mean prioritising a Stocks and Shares ISA may be a good idea for those with a higher risk threshold.

Recent interest rate cuts mean the best-paying Cash ISA rate for easy access is now below 5%. By comparison, the average long-term returns on the FTSE 100 and S&P 500 are around 7% and 11% respectively.

The returns from Cash ISAs could continue falling, too, as the Bank of England adjusts its monetary policy in response to falling inflation.

Let me show you the difference this could make on someone’s long-term wealth. A monthly £500 investment in a 4%-yielding Cash ISA would turn into £257,065 after 25 years.

Now let’s split that investment 80/20, with £100 put in that Cash ISA and £400 in a Stocks and Shares ISA. If that person could achieve a 9% average annual return on their share investments, they would end up with £499,862 across both ISAs, excluding broker fees.

Past performance is no guarantee of future returns. But I’m optimistic that share markets can continue their impressive long-term ascent.

2. Broaden your horizons

Major UK and US shares dominate the portfolios of Stocks and Shares ISA investors. The likes of Lloyds, Nvidia, Rolls-Royce, and Tesla all feature heavily.

Those seeking to supercharge their investment returns, however, may want to look further afield to emerging markets for other stocks and funds to buy.

The Franklin FTSE India ETF (LSE:FLXI) is one fund I’m considering for my own portfolio. This exchange-traded fund (ETF) has holdings in 244 large- and mid-cap Indian stocks, a quality that helps investors to spread risk.

Since early 2020, the fund’s delivered an average annual return of 11.4%. That’s below the 14% that an S&P 500-focused ETF would have roughly provided in that time.

Yet I believe returns here could be far higher looking ahead, driven by India’s rapid economic growth, heavy overseas investment, and ongoing government reforms.

The IMF thinks the Asian’s second-largest economy will grow 6.5% this year alone. That’s significantly higher than the 2.2% and 1.5% predicted for the US and UK.

A broad selection of stocks — from HDFC Bank and Hindustan Unilever to Tata Motors — gives investors in this Franklin Templeton fund multiple ways to capitalise on the economic boom.

While currency volatility could impact future returns, I still think emerging market ETFs like this one have the potential to deliver blowout profits for investors.

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Past performance is not a reliable guide to future returns. But the average annual return on the following three ETFs is a whopping 16%.

To put that into context, a £15,000 investment spread equally across them would — after 25 years — turn into £797,608 if their performance remains unchanged.

Quality street

The first fund I’m looking at is the iShares Edge MSCI USA Quality Factor ETF (LSE:IUQA). During the last five years it’s delivered an average annual return of 14.7%.

It has holdings in five of the ‘Magnificent Seven’ tech stocks, namely Alphabet, Apple, Meta, Microsoft, and Nvidia. So it’s soared in value thanks to the buzz around artificial intelligence (AI) and other advancements of the digital revolution.

But this fund is no one-trick pony. Its focus on quality — namely “US companies that have historically experienced strong and stable earnings” — provides exposure to a multitude of robust sectors. Other major holdings include Visa, Eli Lilly, and Costco.

Almost 60% of the fund is tied up in cyclical sectors like information technology, financial, and consumer discretionary. This can create turbulence during downturns. But as we’ve seen, it can also deliver substantial returns over the longer term.

Caffeine fix

Gold’s surge to record highs has dominated commodities chatter during 2024. What’s commanded less attention is the coffee price, which in December also struck all-time peaks.

In fact, prices of coffee beans have been rising sharply over a number of years. So related ETFs like the WisdomTree Coffee (LSE:COFF) fund have subsequently rocketed in value.

Since 2019, this fund — which tracks the Bloomberg Commodity Coffee Subindex 4W Total Return Index — has provided an average yearly return of 20.7%.

A rise in extreme weather events has severely affected harvests of late. With climate change intensifying, supply shortages could become more common and push bean prices even higher.

So I think this Wisdomtree fund’s worth a close look, even though it’s denomination in US dollars, which makes returns vulnerable to exchange rate movements.

A passage to India

My final fund under the spotlight is the Franklin FTSE India ETF (LSE:FLXI). This product — which has holdings in 244 large and mid-capitalisation Indian stocks — provides excellent exposure to Asia’s fastest-growing economy.

During the last five years, it’s delivered an average yearly return of 12.7%.

Like the US iShares fund mentioned above, this Franklin Templeton ETF provides excellent diversification by sector. Major names include HDFC Bank, Infosys, Bharti Airtel, and Hindustan Unilever. So it provides a broad snapshot of Indian society.

On the downside, its focus on India makes the fund more susceptible to regional challenges compared to a globally diversified fund. However, the rate at which the local economy is tipped to grow still makes it an attractive investment to me.

Analysts at S&P, for instance, expect India’s annual GDP growth to average 6.7% between now and 2031.

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Those figures aren’t too shabby, I’m sure you’d agree. In fact, someone who invested just £1,000 when the S&P 500 started should be a millionaire.

Could there be a better way to build wealth today however? I have exposure to the Footsie and the S&P 500 through individual shares and funds. But I’m looking for ways to make an even better return.

If I had cash to invest, here are two exchange-traded funds (ETFs) I’d add to my portfolio.

Talking tech

Soaring tech profits have propelled the S&P 500 higher in more recent decades. US companies have effectively exploited (and indeed, pioneered) a range of phenomena-like advances such as e-commerce, smartphones, cloud computing, social media and the Internet of Things (IoT).

With the digital revolution continuing, some of these segments have further room for growth. There are also other new exciting tech frontiers opening up like artificial intelligence (AI), 6G and space travel.

The trouble is that less than a third (31%) of the S&P is made up of tech stocks. For the FTSE 100, the proportion is much weaker. It’s less than 1%, in fact.

Investors can get around this however, by purchasing a pure technology-focused ETF. The iShares S&P 500 Information Technology Sector ETF (LSE:IUIT) is one such financial instrument.

Since it started in 2015, the fund has delivered a whopping average annual return of around 23%. It provides exposure to big tech hitters like Nvidia, Microsoft and Apple, and across multiple sub-sectors like semiconductors, consultancy and comms equipment.

Okay, here’s the thing. I already own this tech-geared ETF, along with one that tracks the broader S&P 500. When I next have spare money, I’ll invest more in the first one to target a better return.

Having said that, I am aware that its focus on the cyclical tech sector could result in more disappointing returns during economic downturns.

Looking east

Targeting superior profits may also involve more than just choosing certain types of UK or US shares. It might see me diverting some of my attention to other faster-growing economies.

The Franklin FTSE India UCITS ETF (LSE:FLXI) could deliver mighty returns as Asia’s third-largest economy grows. It’s already enjoyed an average yearly return above 13% since it began five years ago.

The fund invests in 244 mid- and large-sized Indian companies across multiple sectors, which in turn provides solid diversification.

India’s economy is booming for several reasons. It has a young and growing population, rising middle class, improving technological landscape, and is benefitting from rising foreign investment and economic reforms.

Encouragingly for investors in this ETF, economists are expecting GDP there to continue rocketing. The IMF’s tipping growth of 5.5% in 2025, which could have positive implications for the country’s stock market.

For the US and UK, growth’s predicted at a far more modest 1.7% and 1.1% respectively.

While India offers huge opportunities, it also faces big challenges that could hamper growth. High unemployment and climate risks are a couple of such dangers.

Still, on balance, I think this ETF could prove a top buy for me.

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Here’s one dirt cheap Footsie share I’m considering adding to my Stocks and Shares ISA. I also have my eye on this low-cost exchange-traded fund (ETF).

Franklin FTSE India UCITS ETF

Problems in the Chinese economy have impacted demand for emerging market shares over the past year. But of course China isn’t the only way investors can target big returns from Asian economies.

I’m considering adding the Franklin FTSE India UCITS ETF (LSE:FLXI) to my ISA next month. As the name suggests, it provides excellent exposure to Asia’s third largest economy.

The rate of economic growth in India’s hard for me to ignore. GDP’s tipped to rise 6.7% to 6.8% in 2025 and 2026 respectively by the World Bank. That’s more than double the 4% to 4.1% increase predicted for China.

Investing in India isn’t just a short-term strategy though. EY Club expects the economy to grow to around $35trn by the late 2040s, in purchasing power parity (PPP) terms. That compares to below $5trn today.

The Franklin FTSE India ETF invests in more than 230 large- and mid-capitalisation stocks, a strategy that helps me to manage risk.

The fund’s delivered an impressive average annual return of 15.45% over the past five years. Major names here include conglomerate Reliance Industries, financial services provider HDFC Bank, and information technology specialist Infosys.

While ETFs help reduce risk, they don’t eliminate dangers entirely. Share prices could go down or up, and threats to India’s economy include its high fiscal deficit, poor job creation, and the impact of climate change on its huge agricultural sector.

But on balance, I believe the fund has excellent investment potential. And with a total expense ratio of 0.19%, it is one of the cheapest ETFs to get exposure to India.

M&G

M&G’s (LSE:MNG) a FTSE 100 share that also has substantial growth potential. While it’s focused on the slow-growing UK economy, the country’s booming older population provides excellent earnings opportunities.

This isn’t the only reason why I’m pretty excited here. Demand for savings and investment products are also accelerating as worries over the future of the State Pension increase.

Helped by falling interest rates, City brokers expect M&G’s earnings to rebound from 2024. A 119% rise is currently predicted this year, which leaves the company trading on a price-to-earnings (P/E) ratio of just 7.6 times.

The company also carries a vast 9.7% dividend yield for 2024. This is one of the highest on the FTSE 100.

With a Solvency II ratio of 210%, M&G has formidable financial strength to pay large dividends in the future while also investing for growth.

On the downside, business faces significant competitive pressure from industry heavyweights like Legal & General and Aviva. But all things considered, I think it’s a top stock to consider at current prices.

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