Best ETFs
The funds long-term investors actually build portfolios with.
Why ETFs for long-term investors
- 1
An ETF (exchange-traded fund) bundles hundreds or thousands of stocks or bonds into a single ticker you buy like one share — instant diversification, no stock-picking.
- 2
For long-term investors, low-cost index ETFs are the simplest path to the market's long-run return: own everything, keep fees tiny, and let compounding work.
- 3
Returns below are approximate annualized total returns (with dividends reinvested) since each fund launched — long track records, but past performance never guarantees the future.
Core U.S. Market
The foundation of most long-term portfolios — own the whole U.S. market for almost nothing.
Vanguard S&P 500 ETF
- Holds the 500 largest U.S. companies — one ticker, instant diversification.
- Rock-bottom 0.03% fee: on $10,000 that's just $3 a year.
- The classic 'set-and-forget' core holding for buy-and-hold investors.
Vanguard Total Stock Market ETF
- Owns essentially the entire U.S. stock market — large, mid, and small caps (~3,600 stocks).
- Even broader than the S&P 500, so you also capture smaller fast-growers.
- A single fund that is, by itself, a complete U.S. equity portfolio.
SPDR S&P 500 ETF
- The oldest and most heavily traded ETF in the world — tracks the S&P 500.
- Its long track record shows the ~10%/yr the U.S. market has delivered over decades.
- Slightly higher fee than VOO; favored by traders for its huge liquidity.
Growth & Technology
More tech, more growth, more ups and downs — higher potential return, higher volatility.
Invesco Nasdaq-100 ETF
- Tracks the 100 largest non-financial Nasdaq companies — heavily tech and growth.
- Has crushed the S&P 500 since 2010, but fell ~80% after the dot-com bubble — expect big swings.
- Concentrated in mega-cap tech, so it rises and falls with names like Apple, Microsoft, and Nvidia.
Vanguard Growth ETF
- Holds the faster-growing half of large-cap U.S. stocks at a very low fee.
- A cheaper, more diversified way to tilt toward growth than QQQ.
- Tends to lead in bull markets and lag when value comes back in favor.
Dividend & Income
Steady cash payouts and lower volatility — popular for income and for calmer compounding.
Schwab U.S. Dividend Equity ETF
- Screens for quality companies with strong, sustainable dividends — not just the highest yields.
- Has delivered growth-like returns with a healthy, rising dividend.
- A favorite core holding for investors who want income plus capital growth.
Vanguard Dividend Appreciation ETF
- Focuses on companies with a long history of raising their dividend every year.
- Tends to hold high-quality, durable businesses — smoother ride in downturns.
- Lower starting yield than SCHD/VYM, but faster dividend growth over time.
Vanguard High Dividend Yield ETF
- Holds a broad basket of higher-yielding large-cap U.S. stocks.
- Higher current income than VIG, with more exposure to value sectors.
- A simple, cheap income tilt for the more conservative part of a portfolio.
Diversifiers — International, Bonds & Gold
What you add to smooth the ride — exposure beyond U.S. stocks for balance.
Vanguard Total International Stock ETF
- Owns thousands of non-U.S. stocks — developed and emerging markets in one fund.
- Has lagged the U.S. for years, but adds diversification if U.S. leadership fades.
- Pair with VTI for a complete 'total world' stock portfolio.
Vanguard Total Bond Market ETF
- Holds thousands of U.S. investment-grade bonds — the classic stock-market shock absorber.
- Lower return than stocks, but far steadier; cushions a portfolio in crashes.
- Used to dial down risk as you get closer to needing the money.
SPDR Gold Shares
- Tracks the price of physical gold — a hedge against inflation and crises.
- Pays no dividend and can stagnate for years, then spike in uncertain times.
- A small allocation (often 5–10%) for diversification, not a core holding.
Returns are approximate annualized total returns (dividends reinvested) since each fund's inception and are refreshed quarterly. Educational information only — not investment advice or a recommendation to buy, hold, or sell any fund. Past performance does not guarantee future results.