Exchange-Traded Funds (ETFs) provide investors with diversified exposure to various asset classes while keeping costs low. For those looking to invest for the long term, holding ETFs can be a smart strategy. Here are the 10 best ETFs to buy and hold for sustained growth and financial security.
1. Vanguard Total Stock Market ETF (VTI)
- Why Buy? Provides broad exposure to the entire U.S. stock market, including small-, mid-, and large-cap stocks.
- Expense Ratio: 0.03%
- Ideal for: Investors looking for diversified U.S. equity exposure.
2. SPDR S&P 500 ETF Trust (SPY)
- Why Buy? Tracks the S&P 500, representing 500 of the largest U.S. companies.
- Expense Ratio: 0.09%
- Ideal for: Those seeking stable, large-cap growth.
3. iShares MSCI Emerging Markets ETF (EEM)
- Why Buy? Gives exposure to emerging market economies with high growth potential.
- Expense Ratio: 0.69%
- Ideal for: Investors seeking international diversification.
4. Vanguard Dividend Appreciation ETF (VIG)
- Why Buy? Focuses on companies with a history of increasing dividends.
- Expense Ratio: 0.06%
- Ideal for: Dividend growth investors.
5. Invesco QQQ Trust (QQQ)
- Why Buy? Provides exposure to top Nasdaq-100 companies, primarily in tech and innovation.
- Expense Ratio: 0.20%
- Ideal for: Tech-focused investors.
6. Schwab U.S. REIT ETF (SCHH)
- Why Buy? Offers exposure to real estate investment trusts (REITs) for income and diversification.
- Expense Ratio: 0.07%
- Ideal for: Those looking for real estate exposure.
7. iShares Gold Trust (IAU)
- Why Buy? Tracks the price of gold, providing a hedge against inflation.
- Expense Ratio: 0.25%
- Ideal for: Investors seeking an inflation hedge.
8. Vanguard FTSE Developed Markets ETF (VEA)
- Why Buy? Provides exposure to developed markets outside the U.S.
- Expense Ratio: 0.05%
- Ideal for: Global diversification.
9. ARK Innovation ETF (ARKK)
- Why Buy? Focuses on disruptive innovation in technology and healthcare.
- Expense Ratio: 0.75%
- Ideal for: Growth-oriented investors with a high risk tolerance.
10. iShares U.S. Treasury Bond ETF (GOVT)
- Why Buy? Offers exposure to U.S. Treasury bonds, providing safety and income.
- Expense Ratio: 0.05%
- Ideal for: Risk-averse investors looking for stability.
Conclusion
Buying and holding these ETFs can provide a strong foundation for long-term investing. With a mix of U.S. and international equities, real estate, commodities, and fixed income, this diversified approach helps build a resilient portfolio. Choosing the right ETFs depends on investment goals, risk tolerance, and market outlook.
