Nice work you unlocked access to 5 ETF’s To Hold Forever (most people can’t make it this far)! Below you will find a handful of ETFs I wouldn't be afraid to buy and hold forever.

For those who don’t know, an ETF stands for an exchange traded fund and is basically a basket of stocks. For example let's say an ETF holds equal amounts of Apple, Facebook, Amazon, and Microsoft. When you buy a share of the ETF, assuming the holdings are equally weighted, 25% of your money will be going into each of the previously mentioned stocks.

Essentially, these funds provide a way to invest into a variety of stocks in one place. Holdings of an ETF will depend on the overall goals of the fund. Some will simply track an index like the S&P 500 while others will hold a variety of dividend stocks.

Disclaimer

This is not financial advice. I am not a financial advisor, just a dude on twitter (or “X”) who enjoys sharing his investing knowledge. See a financial advisor to discuss your personal finance goals. With that said I have done my best to ensure the information in this PDF is true and accurate so let’s get into it (data from 12/3/23).

VTI - Vanguard Total Stock Market ETF

• Inception Date: 05/24/2001

• 10 Year Average Annual Return: 11.2%

• 5 Year Average Annual Return: 11.9%

• Dividend Yield: 1.59%

• Expense Ratio: 0.03%

VTI claims the spot as my favorite broad market ETF. This fund tracks the US Total Market index which consists of over 4000 companies and offers exposure to small, mid, and large cap stocks. If you are looking for a one-and-done type of ETF, VTI is definitely an option to consider.

By investing in this fund you are putting the majority of your money into well known companies such as Apple, Microsoft, Amazon, Johnson and Johnson, and Tesla.

Top Holdings

• Apple

• Microsoft

• Amazon

• NVIDIA

• Alphabet (Google)

• Meta

• Berkshire Hathaway

• Tesla

• UnitedHealth Group

• Eli Lilly and Co

SCHD - Schwab U.S. Dividend Equity ETF

• Inception Date: 10/20/2011

• 10 Year Average Annual Return: 10.7%

• 5 Year Average Annual Return: 11%

• Dividend Yield: 3.8%

• Expense Ratio: 0.06%

SCHD claims the spot as my favorite dividend ETF. This fund tracks the Dow Jones U.S. Dividend 100 index which focuses on companies that have a history of consistently paying dividends and display fundamental strength.

A variety of different dividend ETFs exist depending on whether you prefer growth or cash flow. SCHD is a good mix of both of those in my opinion. By investing in this fund you are putting the majority of your money into well known dividend companies such as Coke, Pepsi, Texas Instruments, and Home Depot. Honorable mention for the dividend category is VYM. The only reason I choose SCHD over it is for its better return. It is important to note though that VYM has been around for longer.

Top Holdings

• Verizon

• Amgen

• Broadcom

• Coca-Cola

• AbbVie

• PepsiCo

• Merch & Co

• Home Depot

• BlackRock Inc

• Texas Instruments

QQQ - Invesco QQQ

• Inception Date: 03/10/1999

• 10 Year Average Annual Return: 17.4%

• 5 Year Average Annual Return: 18.9%

• Dividend Yield: 0.65%

• Expense Ratio: 0.2%

QQQ claims the spot as my favorite growth ETF. This fund tracks the Nasdaq 100 which focuses on the 100 largest domestic and international nonfinancial companies listed on the Nasdaq stock market. By investing in QQQ you are inheriting a little more risk for the potential of greater returns.

The focus of the QQQ is in tech companies although it also has holdings in the consumer discretionary and communication services sector. Another popular growth ETF is VGT, but I choose QQQ since it has exposure to Amazon. VGT also has 20% of its fund in Apple which is something investors should be aware of

Top Holdings

• Apple

• Microsoft

• NVIDIA

• Meta

• Broadcom

• Alphabet (Google)

• Tesla

• Adobe

• Costco

VB - Vanguard Small Cap ETF

• Inception Date: 01/26/2004

• 10 Year Average Annual Return: 8.0%

• 5 Year Average Annual Return: 7.6%

• Dividend Yield: 1.74%

• Expense Ratio: 0.05%

VB claims the spot as my favorite small cap ETF. This fund tracks the CRSP US Small Cap Index. The three previously mentioned funds all focus on mostly large cap stocks. Investing in VB can give investors exposure to the smallest 85%-98% of stocks in the market. Buying individual small caps can be risky, so using VB to diversify into these smaller companies helps to reduce that risk.

Top Holdings

• Targa Resources

• PTC Inc

• Atmos Energy Corp

• Bunge Global

• Booz Allen Hamilton

• Deckers Outdoor

• Jabil Inc

• Reliance Steel & Aluminum

• Axon Enterprice

• IDEX Corp

VXUS - Vanguard Total International Stock ETF

• Inception Date: 01/26/2011

• 10 Year Average Annual Return: 4.7%

• 5 Year Average Annual Return: 2.0%

• Dividend Yield: N/A Expense Ratio: 0.07%

VXUS claims the spot as my favorite international markets ETF. This fund invests in stocks located in different areas around the world including China, Canada, United Kingdom, and Japan.

International markets are good to have exposure to, but historically have not provided the same return as U.S equities. Essentially investing overseas is a hedge against the US dollar. Give VXUS a look and consider allocating some of your ETF portfolio to international markets.

Top Holdings

• Taiwan Semiconductor

• Novo Nordisk

• Nestle

• ASML

• Samsung

• Tencent

• Shell PLC

• Toyota Motor Corp

• Novartis AG

• AstraZeneca PLC

There's More...

Thanks for reading, I hope you found this helpful. If you want to learn more about ETFs I've linked a few of my previous emails below that cover different aspects of ETF investing.

Have a good one! ~ Cade