The ETFs that belong in a buy-and-hold portfolio — selected for cost, diversification, and decades-long track records.
Not all ETFs are created equal. Leveraged ETFs, inverse ETFs, thematic ETFs betting on specific trends — these are trading vehicles, not long-term investments. The best ETFs for buy-and-hold investors share four qualities: ultra-low expense ratios, broad diversification, high liquidity, and a track record of closely tracking their benchmark.
The gold standard. Tracks the 500 largest U.S. companies. Over $500 billion in assets. Exceptional liquidity — you can always buy or sell at a fair price. The single best ETF for most long-term U.S. investors who want simplicity.
Broader than VOO, holding ~3,600 U.S. stocks. Adds small and mid-cap exposure for slightly more diversification at the same cost. Ideal if you want to own the entire U.S. market.
Schwab's Total Market ETF, comparable to VTI. Great option for Schwab account holders who want broad U.S. exposure.
The best single ETF for international diversification. ~8,600 stocks across 47 countries — developed and emerging markets. Pair with VOO or VTI for a complete global portfolio.
International developed markets only (Europe, Japan, Australia, Canada) — no emerging market volatility. For more conservative international exposure.
The definitive U.S. bond ETF. Broad exposure to government and corporate bonds. Add to your portfolio as you approach retirement to reduce volatility.
Global bond diversification in one fund — U.S. and international bonds combined. For investors who want complete fixed income diversification.
For most long-term investors, three ETFs are genuinely all you need: