ETFs have skyrocketed in popularity, expanding from 276 in 2003 to a staggering 8,754 in 2022. Amid this vast selection, there are six standout ETFs that are worth to buy-and-hold forever.
Criteria:
Best ETFs to Buy and Hold:
Vanguard Total Stock Market ETF (VTI):
One of the cornerstone ETFs for long-term investors is the Vanguard Total Stock Market ETF (VTI). VTI provides broad exposure to the entire U.S. stock market. By owning VTI, you become a part-owner of thousands of different companies, including big and small ones from various sectors. VTI is an outstanding option for buy-and-hold investors aiming for long-term growth potential due to its low expense ratios (0.03%, compared to the average ETF cost of 0.16%) and impressive track record of strong returns.
Invesco QQQ Trust (QQQ):
If you're interested in technology and growth stocks, the Invesco QQQ Trust (QQQ) is a must-have ETF for your long-term portfolio. QQQ tracks the Nasdaq-100 Index, which includes some of the largest and most innovative companies in the technology, biotech, and telecommunications sectors. With a focus on growth-oriented stocks, QQQ is one of the best ETFs to buy and hold.
iShares Core S&P 500 ETF (IVV):
For investors looking to capture the performance of the iconic S&P 500 index, the iShares Core S&P 500 ETF (IVV) is a top pick. This ETF provides exposure to the 500 largest publicly traded companies in the U.S., offering a balanced representation of the market. IVV's low expense ratio and liquidity make it a popular choice for long-term investors seeking broad market exposure.
iShares Russell 2000 ETF (IWM):
Investors seeking exposure to small-cap stocks can consider the iShares Russell 2000 ETF (IWM). This fund tracks the Russell 2000 Index, which represents the performance of 2,000 small-cap companies in the U.S. With its potential for higher growth and diversification benefits, IWM is an ideal choice for long-term investors looking to capitalize on the success of small-cap stocks.
SPDR Gold Shares (GLD):
Adding diversification through exposure to gold is a wise move for any long-term investor. The SPDR Gold Shares (GLD) is the largest physically backed gold ETF, providing investors with an efficient and cost-effective way to invest in gold. As a hedge against inflation and economic uncertainty, gold can play a valuable role in a long-term portfolio.
iShares MSCI EAFE ETF (EFA):
For investors looking to diversify beyond U.S. markets, the iShares MSCI EAFE ETF (EFA) is a top choice. This ETF tracks the performance of developed markets outside of the U.S. and Canada, offering exposure to companies in Europe, Australasia, and the Far East. EFA provides a balanced international allocation, allowing investors to participate in global growth opportunities.
How does recurring ETF investing work?
Instead of stressing about timing the market, the confusion of picking ETFs, and the calculations of share quantities, consider a more straightforward path where you invest a consistent amount at regular intervals, be it weekly or monthly, into a basket that holds all these buy-and-hold ETFs. By following this approach, you build a reliable habit of investing regularly and spreading your investments across different ETFs.
How do I regularly invest in ETFs with Share Invest?
Share enables novice investors to build a diversified, recurring stock portfolio in just 30 seconds. Begin with our pre-made basket encompassing all the ETFs referenced in this article. Then set your weekly investment amount, and start a recurring stock portfolio comprised of these 6 buy-and-hold ETFs.