Saturday, October 15, 2022

7 Best Long-Term ETFs to Buy and Hold

From Friday's edition of U.S. News Invested, 7 top ETFs for your consideration during the wonderful autumn weekend.  


OCTOBER 14, 2022

U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.

Happy Friday, investors! Stocks roar out of an inflation data-driven funk, and third-quarter earnings season kicks off.

Highlights of today's newsletter include our market insights plus these new articles:

7 Best Long-Term ETFs to Buy and Hold
Is the 60/40 Portfolio Dead?
The Ultimate Guide to Dividend Stocks

Hands holding money sky

The stock market has been throwing investors for a loop all year, thanks to a steady drumbeat of bad news about inflation, interest rates and economic growth. It can be hard to stomach short-term volatility, true, but that doesn't mean you should panic and abandon your long-term strategy on a whim. The following buy-and-hold exchange-traded funds, or ETFs, are good examples of the kind of holdings that have a lot to offer investors over the years ahead – regardless of the short-term challenges brought by 2022:

SPDR Portfolio S&P 500 ETF (ticker: SPLG). Many investors are more familiar with this fund's older sister, the SPDR S&P 500 ETF Trust (SPY) that was born back in 1993 and commands a mammoth $330 billion in assets under management. But that flagship fund also carries annual expenses of 0.095% – which may not sound like a lot, but is still three times the amount charged by the smaller SPLG fund. They are nearly identical index funds, benchmarked to the popular S&P 500 index of large-cap U.S. stocks. If you're a long-term, buy-and-hold investor, then SPLG will work just fine and charge you a bit less to access the same blue-chip stocks.

iShares Core S&P Small-Cap ETF (IJR). Many folks with a long-term investing horizon gravitate toward smaller companies because of their upside potential. This roughly $60 billion iShares fund offers exposure to smaller companies that make up the S&P SmallCap 600 Index. The 600 components are all under about $8 billion in size, meaning you'll exclude the household names that make up the typical index fund and get exposure to more potential upside in smaller startups.  


7 best long-term ETFs to buy and hold:

  • SPDR Portfolio S&P 500 ETF (SPLG)
  • iShares Core S&P Small-Cap ETF (IJR)
  • Vanguard Information Technology ETF (VGT)
  • iShares Core Dividend Growth ETF (DGRO)
  • Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
  • Vanguard Total International Stock ETF (VXUS)
  • Vanguard Short-Term Corporate Bond ETF (VCSH)


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