What etf is the best to buy and hold for a long time
9/9/2024 06:10am
The best ETF to buy and hold for a long time depends on your investment goals and risk tolerance. Here are some top options to consider:
1. **Large-Cap Value ETFs**: For long-term value investing, consider the Vanguard Value ETF (VTV) with a 5-year annualized return of 11.6% and an expense ratio of 0.04%. It seeks to track the performance of the CRSP U.S. Large Cap Value Index, which measures the returns of large-cap value stocks.
2. **Mid-Cap Value ETFs**: If you prefer mid-cap value stocks, the Vanguard Mid-Cap Value ETF (VOE) is a good choice with a 5-year annualized return of 10.1% and an expense ratio of 0.07%. It seeks to track the performance of the CRSP U.S. Mid Cap Value Index.
3. **Small-Cap Value ETFs**: For exposure to small-cap value stocks, the Vanguard Small-Cap Value ETF (VBR) offers a 5-year annualized return of 10.3% with an expense ratio of 0.07%. It aims to track the performance of the CRSP U.S. Small Cap Value Index.
4. **Large-Cap Growth ETFs**: If you're interested in growth investing, the iShares S&P 500 Growth ETF (IVW) is a solid choice with a 5-year annualized return of approximately 7.4% and an expense ratio of 0.18%. It tracks the performance of the S&P 500 Growth Index, which includes growth-oriented stocks.
5. **Innovation ETFs**: For a focused bet on innovative companies, consider the Invesco QQQ Trust (QQQ) with a 10-year annualized return of 18.6% and an expense ratio of 0.20%. QQQ tracks the performance of the Nasdaq-100 Index, which includes 100 of the largest non-financial stocks trading on the NASDAQ.
6. **International Value ETFs**: If you want international exposure, the Vanguard International High Dividend Yield ETF (VYMI) offers a 5-year annualized return of 8.02% with an expense ratio of 0.22%. It aims to provide exposure to high dividend yielding stocks outside the U.S.
Consider your investment horizon, risk tolerance, and the sectors you are interested in before making a final decision. It's also important to review the expense ratios and historical performance of these ETFs to ensure they align with your investment objectives.