What type of low-cost stock index exchange-traded fund (ETF) would give the best long-term total return?

Which ETF is best for long-term investment?

7 of the best ETFs to buy for long-term investors:

SPDR Portfolio S&P 500 ETF (SPLG)
Invesco S&P 500 Equal Weight ETF (RSP)
Vanguard Mega Cap ETF (MGC)
Schwab U.S. Small-Cap ETF (SCHA)
iShares Core S&P Mid-Cap ETF (IJH)
Schwab U.S. Dividend Equity ETF (SCHD)
iShares Core U.S. Aggregate Bond ETF (AGG)

Which index fund is best for long-term?

Best Index Funds

Nippon India Index Fund – Sensex Plan – Direct Plan – Growth Plan. …
HDFC Index Fund Sensex Plan-Direct Plan. …
ICICI Prudential Sensex Index Fund Direct Growth. …
Tata Index Fund Sensex Direct Plan. …
IDFC Nifty Fund Direct Plan Growth. …
DSP Equal Nifty 50 Fund Direct Growth.

Are ETFs or index funds better for long-term?

ETFs may also have lower minimum investments and be more tax-efficient than most index funds. Despite their differences, index funds and ETFs do have a lot in common including diversification, low costs to invest and strong long-term returns.

Which ETF gives the highest return?

100 Highest 5 Year ETF Returns

Symbol	Name	5-Year Return
VONG	Vanguard Russell 1000 Growth ETF	85.15%
XNTK	SPDR NYSE Technology ETF	84.77%
SPUU	Direxion Daily S&P 500 Bull 2x Shares	84.22%
IWF	iShares Russell 1000 Growth ETF	84.21%

Are ETFs good long-term investments?

ETFs can be great building blocks for long-term investors. They can provide broad exposure to market sectors, geographies, and industries and help investors quickly diversify their portfolios and reducing their overall risk profile. The best long-term ETFs provide this exposure for a relatively low expense ratio.

Can I hold ETF long-term?

ETFs can make great, tax-efficient, long-term investments, but not every ETF is a good long-term investment. For example, inverse and leveraged ETFs are designed to be held only for short periods. In general, the more passive and diversified an ETF is, the better candidate it will make for a long-term investment.

Which is best index fund or ETF?

ETFs offer lower expense ratios and greater flexibility, while Index Funds simplify many trading decisions that an investor has to make. Therefore, Index Funds should be your core holding.

What is the average return on index funds?

The index has returned a historic annualized average return of around 10.5% since its 1957 inception through 2021. While that average number may sound attractive, timing is everything: Get in at a high or out at a relative low and you will not enjoy such returns.

What is a low cost index fund?

Low-cost index funds are pooled investments with low expense ratios, or annual management fees. Investors who focus on minimizing their investing costs can generate vastly superior returns over time since money lost to fees is money no longer compounding on itself in your investment account.

What ETF has the highest 10 year return?

This semiconductor ETF from BlackRock’s iShares, one of the largest creators of ETFs, was up nearly 1.000% from its lows in 2011 to its highs in 2021, making it the best performing ETF over the last 10 years.

Which Vanguard ETF has the highest return?

1. Total Stock Market ETF (VTI)

Expense Ratio: 0.03%
One-Year Return: -3.31%
Five-Year Return: 12.97%
10-Year Return: 13.25%
Risk Potential: 4.

Are ETFs good for retirement income?

Nevertheless, ETFs offer investors the chance to grow their portfolios significantly over time, making them ideal choices for a retirement or savings portfolio. Some of the top holdings of retirement ETFs popular in the US include Cloudflare, Inc.

Is VTI good for retirement?

If you’re looking for a simple and easy way to invest in U.S. stocks, VTI is one fund that’s worth a look. Of course, the bigger stocks hold more interest to many retirees because they are a bit less risky than smaller firms that aren’t as well capitalized.

Which retirement fund is best?

The 9 best retirement plans:

IRA plans.
Solo 401(k) plan.
Traditional pensions.
Guaranteed income annuities (GIAs)
The Federal Thrift Savings Plan.
Cash-balance plans.
Cash-value life insurance plan.
Nonqualified deferred compensation plans (NQDC)

Which is better VOO or VTI?

Over very long periods of time, VTI can be expected to perform very similarly to VOO, but with higher volatility. Because 82% of VTI is VOO, its performance is still highly correlated to the S&P 500. The remaining 12% of mid- and small-cap stocks adds some volatility, which can boost returns but also increases risk.

Is VOO good for long term?

What history has shown us is that the markets always bounce back. VOO tracks the S&P almost identically. The average annual returns over the previous 10 years have been 14.6%, and since VOO’s inception, it has returned an average annual return of 15.33%.

Is VTI a good long term investment?

VTI is a balanced fund, with a healthy mix of small-cap, midcap, and blue-chip stocks. VTI is a highly efficient fund with a low expense ratio. AUM are also impressive at more than $289 billion.

Which is better QQQ or VOO?

If you want a single diversified investment that may not earn as much but carries less risk, VOO may be your best. On the other hand, if you’re willing to take on more risk for the chance at earning higher returns, QQQ could be a solid addition to your investments.

Is QQQ good for long term?

QQQ pros. Long-term growth potential: QQQ stock holdings include many companies that develop new technologies, such as computers and zero-emission vehicles. That gives the QQQ ETF more potential for long-term growth. QQQ is also much more diversified across the growth technology sector.

Does QQQ outperform VOO?

Over 10 years, QQQ has beat VOO by 6% per year. As you can see, they have performed differently over the last 10 years, with QQQ beating VOO over the long term. You can expect higher volatility with QQQ in exchange for that higher return.

What ETF is better than QQQ?

QQQ stocks have higher growth but also higher valuations; the market is currently pivoting toward value, which would favor the VOO ETF. Versions of the S&P 500 Index are frequently in institutional accounts and retirement options; VOO is the default choice but QQQ may outperform long term albeit with higher volatility.

Which is better QQQ or VGT?

Dividends. If you want an ETF with higher dividend yields, then you should choose VGT, which has a 1.22% dividend yield. QQQ is nearly half of that with a 0.74% dividend yield. The higher dividend yield from VGT means that you will likely get paid more income at the end of the year.

Can I hold TQQQ long term?

Investors Buy And Hold TQQQ Long-term Because Doing So Provided Extremely High Returns During The Tech Bull Market. Investors who bought TQQQ just after QQQ hit its lowest price in March 2020 and who held it for exactly a single year achieved a remarkable return, earning 258% on their original investment.

What is the difference between QQQ and QQQM?

QQQM tracks the same index – the NASDAQ 100. The important differentiator for investors looking to buy and hold this index for the long term is the fee. QQQ has a fee of 0.20%, while QQQM is cheaper at 0.15%. If you’re using a tax-advantaged account and you currently own QQQ, switch to QQQM.

Why is QQQ cheaper than QQQ?

The original QQQ comes with an expense ratio of 0.20%, but QQQM is 5 basis points cheaper, charging 0.15%. You may be asking yourself why, if Invesco was looking for a cheaper alternative, didn’t it just lower the expense ratio on QQQ instead of launching a 2nd identical fund. The answer, quite simply, is revenue.

Is QQQM a good buy?

Due to higher liquidity, a penny-wide spread, and a higher trading volume, QQQ could be the best option when it comes to short-term and high-frequency trading. On the other hand, the Q mini looks like a good play for long-term investors due to its low expense ratio of 0.15 when compared to QQQ’s expense ratio of 0.20.