Want $1 million in retirement? 9 ETFs to Buy Now and Hold for Decades.

You can build strong wealth with broad index funds – or you can try to maximize your returns with some high performers.

The question of how much money you will need to retire is a tricky question because it’s different for each of us, depending on factors such as our expected longevity, our household expenses and general cost of living, and whether or not we have sources of income on top of that. . Social security benefits.

Many people aim for $1 million, and that’s a reasonable amount for many of us. However, if your retirement is far away, you could aim for much more, because inflation will reduce the purchasing power of your savings over time. Here are nine ETF (Exchange Traded Fund) consider this can help you reach your goal of $1 million or more.

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How to Achieve Solid Portfolio Growth with ETFs

First, understand how money grows and how much you could accumulate over time. THE S&P500 index of the 500 largest American companies averaged annual returns close to 10% (ignoring inflation) over long periods, so let’s be a little conservative and assume an average annual growth of 8%:

Growth of 8% for

$7,000 invested annually

$15,000 invested annually

Calculations by author.

Obviously, you can do very well with a simple, inexpensive, broad-market index fund. Here are three to consider in the table below. (Note that a spending rate is an annual fee.)

ETFs

Expense ratio

Average over 5 years. Annual return

Average over 10 years. Annual return

Average over 15 years. Annual return

Source: Morningstar.com and Vanguard.com, as of June 17, 2024.
*Since creation, September 7, 2010.

Here’s a little about each of them:

• Vanguard S&P 500 ETF: S&P 500 index funds are among the most common, and for good reason. They focus on 500 of the largest U.S. companies, which together represent about 80% of the entire U.S. market.
• Vanguard Total Stock Market ETF: It is reasonable to also consider this ETF, as it aims to include all US stocks, including small and mid-sized stocks.
• Vanguard Total Global Equity ETF: This ETF aims to encompass just about every stock in the world.

THE low-fee index funds above may be all you need to build a secure financial future for you.

Want to try boosting your portfolio growth?

If you can accept more risk and volatility, consider placing a portion of your portfolio in more aggressive growth stocks, such as the ETFs below, each of which focuses on a particular market sector. They have an impressive track record but understand that their past results do not dictate their future results. So think about what market sectors you are the most optimistic and keep an eye on the sectors in which you invest.

ETFs

Expense ratio

Average over 5 years. Annual return

Average over 10 years. Annual return

Average over 15 years. Annual return

Source: Morningstar.com, as of June 17, 2024.

Here’s a little more about each of the ETFs above:

• VanEck Semiconductor ETF: This ETF owns about 25 stocks, with nearly a quarter of its value recently Nvidia alone.
• Sector SPDR ETF Selected for Technology: This ETF includes semiconductors, IT consultants, software, computers, etc. He recently held about 65 shares, with the top spots reserved for Microsoft, Appleand Nvidia.
• Healthcare Select Sector SPDR ETF: This ETF includes companies involved in everything from biotechnology and pharmaceuticals to healthcare equipment and supplies. Its 64 entries were recently led by Elie Lilly, UnitedHealthAnd Johnson & Johnson.
• iShares US Home Construction ETF: This ETF focuses on U.S. companies that build homes. She recently held around 44 stocks, the largest being Dr. Horton, LennarAnd NVR.
• Vanguard Information Technology ETF: This ETF recently had 313 stocks, its biggest holdings recently being Microsoft, Apple, Nvidia, BroadcomAnd Selling power.
• Fidelity Cloud Computing ETF: This ETF is relatively new, having launched in 2021, so there are no long-term returns to share in the table above. Be aware that it lost 41% in 2022 and gained 53% in 2023. It is likely to remain volatile, but consider it if you are bullish on cloud computing. Its 48 titles have recently presented OracleMicrosoft and Intuition.

Keep that in mind

When saving and investing for retirement, make sure you have a comprehensive retirement plan and stick to it. Making Good Use of Tax-Advantaged Retirement Accounts such as IRAs and 401(k)s that’s also a good idea. Also remember that you can put most of your money in one or more general index ETFs and part of your portfolio in a few ETFs that you hope will grow even faster.

Selena Maranjian holds positions at Apple, Microsoft, Nvidia, Oracle and Salesforce. The Motley Fool holds positions in and recommends Apple, Intuit, Lennar, Microsoft, NVR, Nvidia, Oracle, Salesforce, Vanguard Index Funds-Vanguard Total Stock Market ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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