The 7 Best ETFs You Can Invest in Right Now...

Investing is key to building wealth, and there’s no better place to start than with ETFs.

An ETF, or Exchange Traded Fund, is a type of stock market fund consisting of multiple investments at once.

This makes it easier for investors to park their money into groups of assets, rather than individual investments like stocks or commodities.

You can buy ETFs with thousands of different investments in them, and here are my 7 favourite ETFs to dollar cost average into for generational wealth.

This is for educational purposes only. As always, invest at your own risk.

Vanguard 500 Fund ($VOO)

Vanguard created the index fund.

There aren’t many better places to put your wealth than the fund that tracks the 500 best performing US stocks, all in one place.

The Vanguard 500 fund is one of the largest and most popular ETFs on the planet. It has almost $1 Trillion in assets under management, including a pretty large portion of my net worth.

Its low-cost, low risk, and great returns makes it a great choice if you’re looking to invest in the broader market.

Because of its history, diversification, and exposure to blue chip stocks, many investors consider it one of the best ETFs to buy and hold for generations.

It offers a dirt-cheap expense ratio of just 0.03%, compared to a 0.78% average expense ratio for similar funds. It also has fantastic historic returns, even given the low risk nature of the fund.

Over the last 50 years, the average annual return is 9.4%, with dividends reinvested.

The perfect place to build a strong foundation for your investment portfolio.

Invesco QQQ Trust ($QQQ)

If you’re looking for exposure to big tech stocks, the Invesco QQQ Trust is an excellent choice.

This ETF tracks the Nasdaq 100 Index.

This includes 100 of the Nasdaq’s largest non-financial companies, including Apple, Microsoft, and Amazon, which have all performed super well over the past few years.

Tech & growth stocks tend to be more volatile than the market average, but during uptrends, can provide investors with incredible returns.

$QQQ is one of the best-performing ETFs over the past decade.

It has generated a total return of more than 450%, or 17.6% annually.

Easily outpacing the S&P 500 at 220%, or 12.6% annually.

Vanguard Growth ETF ($VUG)

Think of $VUG as like $VOO’s little brother.

If you’re tired of trying to pick a growth stock winner, you should invest in the Vanguard Growth ETF.

This ETF holds large-cap growth stocks, and like $VOO and $QQQ, and its largest holdings are Apple and Microsoft.

In addition, it holds many other growth stocks among roughly 240 holdings.

The Vanguard Growth ETF offers a rock-bottom expense ratio of just 0.04%.

Growth stocks are undeniably more volatile than your average fund.

Don’t go too crazy with this one, but still a great way to diversify your portfolio to a large number of growth stocks.

iShares Core Small Cap ETF ($IJR)

The iShares Core S&P Small-Cap ETF provides broad exposure to small-cap stocks.

Small caps tend to be more volatile than the broader market, since they may not be profitable, or as well-capitalised as large-caps.

As a result, small caps tend to be more at risk during a downturn because they may not have the same access to capital.

This ETF helps mute some of that risk by owning a large basket of small caps. It holds over 600 small cap stocks, so it’s well diversified.

It also has a low concentration of holdings, with its top 10 holdings making up only around 7% of the total.

Just like the growth stocks, don’t go overboard with small caps and expose yourself to too much risk, but it’s another great ETF to be holding for a long time.

iShares Core Dividend Growth ETF ($DGRO)

Dividend stocks are great long-term investments, providing you with passive income regardless of market conditions.

Over the last 50 years, dividend-paying companies have outperformed the broader market, with a 9.2% average annual total return versus 7.7% for the S&P 500.

The iShares Core Dividend Growth ETF provides exposure to U.S stocks with a history of growing their dividends over time.

It holds almost 450 different stocks as of today.

It offers a relatively attractive dividend yield too.

As of today, it has a 12-month yield of 2.6%, more than the 1.5% dividend yield of an S&P 500 Index Fund.

In addition, the fund also prioritises value growth as the underlying companies grow their earnings and increase their dividends.

Vanguard Total Stock Market ETF ($VTI)

Although the S&P 500 is considered a broad-market index, it only gives you exposure to 500 large-cap U.S. stocks.

If you want to own all of the stocks on the U.S market, the best way to do it is with a total stock market fund like the Vanguard Total Stock Market ETF.

The fund holds roughly 4,000 stocks, including large caps, mid caps, and small caps.

Because its holdings encompass the S&P 500, its largest holdings are the same as the broad market index.

Although $VTI and $VOO are both excellent choices, it would be pointless owning them both, as they are so similar.

Choose one to home a large portion of your portfolio, and invest into other ETFs for better diversification.

iShares Core MSCI Total International Stock ETF ($IXUS)

If it’s international markets you want, the iShares Core MSCI Total International Stock ETF is a great investment.

It has roughly 4,300 non-US stocks, including large caps, mid caps, and small caps from around the world.

Some notable holdings include Tencent, Nestle, Toyota and Samsung.

International markets have been overlooked for the past few decades, but with the emergence of the BRICS economic alliance, and the instability of the US Dollar, I’d begin to invest more of my portfolio into $IXUS.

Thanks for reading! Be sure to subscribe (it’s free!) for more financial wisdom every week.