In creating long-term wealth, simplicity is frequently beneficial. You won’t have to pursue the most popular stock or attempt to predict market trends. Instead, you should focus on a small number of solid investments that you can buy, hold, and regularly contribute to via dollar-cost averaging. Exchange-traded funds (ETFs) are an excellent choice for this type of investment strategy.
These five ETFs could be excellent choices for long-term investors. You don’t have to buy all of them, but if you have $1,000 available for investment, any one of these would make a wise initial step. Keep in mind that $1,000 is just a starting point; it’s beneficial to regularly invest in ETFs every month over the long term.
Vanguard S&P 500 ETF
For a 30-year investment period, I would choose the Vanguard S&P 500 ETF (VOO) as my top pick. This exchange-traded fund follows the 500 largest corporations in the United States, providing you with a significant piece of the overall U.S. economy. By investing in it, you gain immediate access to the market’s leading companies, many of which have also been its most successful performers.
The ETF’s expense rate is remarkably small, sitting at only 0.03%. This implies that almost all the money you invest goes towards earning returns for you. Over the last decade, it has yielded an average annual return of approximately 13.6%, as of the end of June. Its consistent performance makes it one of the most dependable long-term investment options available.
Vanguard Growth ETF
If you’re interested in delving deeper into technology and rapidly growing companies, the Vanguard Growth ETF (VUG) could be a suitable investment choice for you. This fund offers a wide range of exposure to large-cap stocks but primarily focuses on firms demonstrating robust earnings and sales growth. As a result, it provides increased exposure to companies such as Nvidia and Amazon. The ETF is based on the CRSP US Large Cap Growth Index and currently includes approximately 165 stocks in its portfolio.
The emphasis on growth by this ETF (Exchange Traded Fund) has proven to be profitable, surpassing the overall market performance. Over the last decade, specifically up until June’s end, the Vanguard Growth ETF has averaged a yearly return of 16.2%. This impressive performance significantly outperforms the broader market. Additionally, boasting an expense ratio of merely 0.04%, it offers a cost-efficient investment opportunity.
You won’t achieve the same level of diversification as the S&P 500, which might result in increased volatility at certain points. But if you’re confident that technology and innovation will continue driving market growth – and I am too – this approach offers a good way to boost your exposure without having to select winners individually.
Invesco QQQ Trust
One easy-to-understand option for an ETF that focuses on growth is the Invesco QQQ Trust (QQQ). This ETF follows the Nasdaq-100 index, which encompasses the top 100 non-financial companies listed on the Nasdaq stock exchange. As a result, it has a significant emphasis on technology and consumer-related stocks.
This Exchange Traded Fund (ETF) has consistently ranked among the top performers in its class. Over the last ten years, it has yielded an average return of 18.7% per year, up until the end of June. What’s particularly noteworthy is that it has outperformed the S&P 500 over 87% of the time on a rolling 12-month basis for the past decade. Such impressive performance is difficult to overlook.
This investment portfolio features some well-known tech giants from Silicon Valley: Apple, Microsoft, Nvidia, Amazon, and Alphabet, among others. Interestingly, compared to certain technology-focused exchange-traded funds like the Vanguard Growth ETF, its top holdings are more diversified in their distribution.
The Invesco QQQ Trust might seem slightly pricier with a 0.2% expense ratio, but given its performance, it’s reasonably priced. If you can handle some short-term market fluctuations for the potential of long-term gains, this ETF is definitely worth considering among those to buy currently.
Schwab U.S. Dividend Equity ETF
For those investors who prefer income and value-focused stocks over tech, the Schwab U.S. Dividend Equity ETF (SCHD) could be an ideal choice. This ETF follows the Dow Jones U.S. Dividend 100 Index, which concentrates on companies boasting robust dividend track records and sound financials. Additionally, it offers a competitive expense ratio of merely 0.06%.
This ETF is offering an income of close to 4% to its investors, making it a reliable source for returns. However, this fund doesn’t limit itself to investing in high-dividend stocks only; instead, it seeks out companies that have demonstrated a consistent pattern of raising their dividends progressively over the years.
Although this ETF might not match the performance of growth-oriented ETFs, it has proven to be a reliable performer. It has managed an annual average return, incorporating dividends, of 11.2% up until June’s end. This outperforms many value-focused ETFs over the same period.
If you’re constructing a retirement portfolio or seeking balance for a growth-focused one, the Schwab U.S. Dividend Equity ETF could be an excellent choice to consider.
Vanguard International High Dividend Yield ETF
Most investors tend to have insufficient investments in international stocks. To address this issue, you might consider the Vanguard International High Dividend Yield ETF (VYMI). This exchange-traded fund concentrates on foreign companies that offer higher than average dividends. Approximately 40% of its holdings are in European firms, while the remaining portion is divided between the Asia-Pacific region and emerging markets.
This ETF from Vanguard ranks second in terms of performance among their offerings this year, having increased by approximately 20.7% as of July 16th. It lags behind only an ETF that specifically focuses on Europe. Notably, it has also been Vanguard’s top-performing international ETF over the past five years, boasting a roughly 14.5% average annual return up to the end of June. This strong performance is remarkable considering the extended period of underperformance experienced by international markets compared to the U.S. market.
If you’re interested in diversifying your investment portfolio with investments from different parts of the world, it’s worth considering the Vanguard International High Dividend Yield ETF. Although its management fee of 0.17% is higher than most Vanguard ETFs, this is common among international-focused ETFs.
Read More
- Gold Rate Forecast
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Justin Bieber Teases New Album ‘SWAG’ with Tracklist Reveal
- 15 Best Sherlock Holmes Actors, Ranked from Worst to Best
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- Ultraman Live Stage Show: Kaiju Battles and LED Effects Coming to America This Fall
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
- Superman’s Rotten Tomatoes Score Blasts Past Expectations—Shocks Even the Harshest Critics
- Tokyo Game Show 2025 exhibitors announced
2025-07-21 18:14