Best ETFs to Buy and Hold Long-Term
Exchange-traded funds (ETFs) are one of the most popular investment choices for long-term investors.
They offer instant diversification, low costs, and easy access to a wide range of asset classes—all in a single trade.
But with thousands of ETFs on the market, how do you know which ones are worth holding for the long run?
In this guide, we’ll explore some of the best long-term ETFs with:
- Proven track records
- Low expense ratios
- Broad diversification
- Potential for steady, inflation-beating growth
We’ll also cover why each ETF might deserve a spot in your portfolio.
1. Vanguard Total Stock Market ETF (VTI)
If you want exposure to the entire U.S. stock market, VTI is one of the best options available.
It holds over 3,500 U.S. companies, covering large-cap, mid-cap, and small-cap stocks across every sector.
- Expense Ratio: 0.03% (extremely low)
- Dividend Yield: ~1.4%
- Why It Works Long-Term: Instant diversification + broad market exposure reduces the risk of betting on just a few companies.
💡 Investor Tip: VTI is a great “set it and forget it” investment. Combine it with a bond ETF for a balanced portfolio.
2. Vanguard S&P 500 ETF (VOO)
For investors who want to track the performance of America’s largest and most established companies, VOO is a classic choice.
- Tracks: The S&P 500 Index
- Top Holdings: Apple, Microsoft, Amazon, NVIDIA, Alphabet
- Expense Ratio: 0.03%
- Why It Works Long-Term: The S&P 500 has historically returned about 10% annually over decades.
📌 Best For: Investors who want simplicity and exposure to the strongest blue-chip companies without having to pick individual stocks.
3. iShares Core U.S. Aggregate Bond ETF (AGG)
While stocks are great for growth, bonds help stabilize your portfolio during market downturns.
AGG gives you exposure to a broad mix of U.S. investment-grade bonds, including government, corporate, and mortgage-backed securities.
- Expense Ratio: 0.03%
- Dividend Yield: ~3% (varies)
- Why It Works Long-Term: Bonds provide steady income and reduce volatility, especially in retirement-focused portfolios.
💡 Investor Tip: AGG can serve as the “safety net” portion of your portfolio—particularly valuable during recessions.
4. Vanguard Total International Stock ETF (VXUS)
Diversifying beyond U.S. borders can help reduce risk and capture growth from emerging and developed markets worldwide.
- Holdings: 7,500+ companies in Europe, Asia, Latin America, and emerging economies
- Expense Ratio: 0.07%
- Why It Works Long-Term: Global diversification helps protect against U.S.-specific downturns.
📌 Best For: Investors seeking exposure to international giants like Nestlé, Samsung, and Toyota—plus high-growth emerging market companies.
5. Schwab U.S. Dividend Equity ETF (SCHD)
If you’re looking for both income and growth, SCHD focuses on high-quality U.S. companies with a strong history of paying dividends.
- Dividend Yield: ~3.5% (varies)
- Expense Ratio: 0.06%
- Why It Works Long-Term: Dividend-paying stocks often outperform in down markets and provide a steady income stream.
💡 Investor Tip: Reinvest dividends automatically (DRIP) to compound returns over decades.
📌 How to Use These ETFs in a Long-Term Portfolio
While each ETF above can stand alone, combining them creates a well-rounded, diversified portfolio:
Example Balanced Portfolio:
- 50% VTI or VOO – U.S. stock exposure
- 20% VXUS – International diversification
- 20% AGG – Bond stability
- 10% SCHD – Dividend income focus
Adjust the percentages based on your risk tolerance and time horizon.
⚠️ Risks to Keep in Mind
Even the best ETFs aren’t risk-free. Consider:
- Market Volatility: Stock ETFs will drop during bear markets.
- Interest Rate Risk: Bond ETFs can lose value when interest rates rise.
- Currency Fluctuations: International ETFs are affected by currency exchange rates.
- Sector Exposure: Make sure no single industry dominates your portfolio.
💡 Final Thoughts
ETFs can be one of the most powerful tools for building wealth while keeping costs low and diversification high.
The key is to choose funds that match your goals and hold them for the long term—through market ups and downs.
While past performance doesn’t guarantee future returns, the ETFs above have strong track records that make them worth considering for any buy-and-hold strategy.
Start small, invest regularly, and stay patient—the power of compounding will do the rest.