For younger investors just starting to build wealth, time is the most powerful asset. With decades ahead to ride out market swings, you don’t need a complicated portfolio filled with dozens of funds. In fact, the best long-term strategies are often the simplest: broad, low-cost, diversified ETFs that can be held through every market cycle.
If you’re early in your investing journey and want to take advantage of compounding over the long haul, here are ten ETFs you can buy, hold, and let work for you for decades.
1. VT – Vanguard Total World Stock ETF
VT combines U.S. and international stocks into a single ETF — over 9,000 companies worldwide. Think of it as VTI + VXUS in one ticker, perfect for minimalists who want global exposure without constant rebalancing. If you’re in your 20’s or 30’s, this could be your entire portfolio for decades.
2. VTI – Vanguard Total Stock Market ETF
VTI is the ultimate “one-and-done” U.S. stock ETF. It owns the entire investable U.S. stock market — over 3,500 companies, from Apple and Microsoft to small regional banks. The expense ratio is just 0.03%, meaning you pay $3 a year for every $10,000 invested. That keeps more of your money compounding instead of leaking to fees.
3. SPLG or VOO – S&P 500 ETFs
SPLG (State Street) and VOO (Vanguard) track the S&P 500, an index of 500 of the largest U.S. companies, representing roughly 80% of U.S. market value. Think household names like Amazon, Johnson & Johnson, and Coca-Cola. Both ETFs are ultra-low cost, highly liquid, and tax-efficient — a cornerstone for any long-term U.S. stock allocation.
4. QQQM – Invesco NASDAQ 100 ETF
QQQM focuses on the NASDAQ-100, which is tech-heavy and includes the famous “Magnificent Seven”: Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta. Its expense ratio is 0.15%, slightly higher than VTI or VOO, but it has rewarded investors handsomely over the past decade. Expect more volatility — but also the potential for higher growth than the broader market.
5. SCHD or VIG – Dividend Growth ETFs
SCHD (Schwab U.S. Dividend Equity ETF) and VIG (Vanguard Dividend Appreciation ETF) focus on high-quality companies that consistently raise dividends. They combine income and growth, and over decades, dividends can dramatically enhance compounding. Perfect for investors who want a steady, reliable complement to a core stock portfolio.
6. IJR or VB – Small-Cap ETFs
Small-cap stocks (companies under ~$2 billion in market value) have historically delivered higher long-term returns, though with bigger short-term swings. IJR (iShares Core S&P Small-Cap) and VB (Vanguard Small-Cap) are great choices. If you want something between small and large, VO (Vanguard Mid-Cap) or IJH (iShares Core S&P Mid-Cap) provide solid mid-cap exposure.
7. VXUS – Vanguard Total International Stock ETF
VXUS provides exposure to every major stock market outside the U.S. — Europe, Japan, emerging markets, and beyond. Global diversification ensures you’re not putting all your eggs in one basket and allows you to capture growth from the rest of the world.
8. Bitcoin ETF (FBTC) or Ethereum ETF (FETH)
Crypto ETFs like Fidelity’s Bitcoin (FBTC) and Ethereum (FETH) let you access these digital assets in a traditional brokerage account. Be aware: crypto is extremely volatile — 20% swings in a week are not unusual. Long-term believers should size positions carefully and be prepared for a rollercoaster ride.
9. XLRE or VNQ – Real Estate ETFs
REITs (Real Estate Investment Trusts) own and operate income-generating properties — from office towers to data centers. XLRE focuses on large U.S. REITs, while VNQ offers broader exposure. Both pay attractive dividends and can diversify your portfolio beyond stocks and bonds.
10. GLDM or IAU – Gold ETFs
Gold isn’t about growth; it’s about protection. GLDM (SPDR Gold MiniShares) and IAU (iShares Gold Trust) track gold prices without the hassle of storing physical bullion. Historically, gold acts as a hedge against inflation and market crises, making it a “just in case” holding.
Bottom Line
A buy-and-hold portfolio built from a mix of these ten ETFs can be held for decades with minimal tinkering. The exact percentages depend on your risk tolerance, time horizon, and goals, but for young investors with decades to invest, focusing on low fees, broad diversification, and patience is the key to letting compounding do the heavy lifting. While this approach may not suit those already in or near retirement—who often need more income and less market risk—for investors just starting out, holding a mix of these funds over the long run can quietly grow into a powerful engine for future wealth.
Disclosures
This material has been prepared for informational purposes only and should not be construed as a solicitation to effect, or attempt to effect, either transactions in securities or the rendering of personalized investment advice. This material is not intended to provide, and should not be relied on for tax, legal, investment, accounting, or other financial advice. You should consult your own tax, legal, financial, and accounting advisors before engaging in any transaction. Asset allocation and diversification do not guarantee a profit or protect against a loss. All references to potential future developments or outcomes are strictly the views and opinions of Richard W. Paul & Associates and in no way promise, guarantee, or seek to predict with any certainty what may or may not occur in various economies and investment markets. Past performance is not necessarily indicative of future performance.