“ There shall be an ETF for every asset class, and it shall be virtually free to own ”
Matt Hougan & Dave Nadig
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The top ETFs recommended for long-term investment, often referred to as "buy and hold forever" options. These ETFs are selected based on their historical performance, low expense ratios, and potential for sustainable returns.
1. Vanguard Information Technology ETF (VGT)
- 1-Year Return: 35.0%
- 10-Year Return: 20.2%
- Expense Ratio: 0.10%
- This ETF tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index, providing exposure to a wide range of tech stocks .
2. Schwab U.S. Dividend Equity ETF (SCHD)
- Dividend Yield: 3.6%
- Expense Ratio: 0.06%
- This fund focuses on financially strong companies with sustainable cash payouts and has a portfolio of over 100 high-quality enterprises, making it a solid choice for income-focused investors .
3. Vanguard S&P 500 ETF (VOO)
- 1-Year Return: 18.3%
- 10-Year Return: 15.7%
- Expense Ratio: 0.03%
- This ETF aims to track the performance of the S&P 500 Index, representing large-cap U.S. stocks, and is known for its reliability and strong historical returns .
4. VanEck Semiconductor ETF (SMH)
- 1-Year Return: 63.1%
- 10-Year Return: 26.7%
- Expense Ratio: 0.35%
- This ETF focuses on companies involved in semiconductor production, a sector that has shown significant growth potential .
5. Invesco QQQ Trust (QQQ)
- 1-Year Return: 31.6%
- 10-Year Return: 18%
- Expense Ratio: 0.20%
- QQQ tracks the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock market, primarily in the technology sector .
Summary
These ETFs provide a mix of growth potential and income through dividends, making them suitable for long-term investors looking to build wealth over time. Each fund has demonstrated strong historical performance, low fees, and a focus on quality investments, aligning with the principles of a buy-and-hold strategy.