Some of the most iconic investors in history made a name for themselves by having the courage to stick to “buy and hold” strategies over aggressive, short-term trading. They include Berkshire Hathaway Inc. (ticker: BRK.B) leader Warren Buffett, former Fidelity fund manager Peter Lynch and Vanguard founder Jack Bogle, among others.
The best long-term ETFs to buy and hold, then, borrow significantly from the lessons learned by these celebrated money managers. They are designed to keep your costs low and zero in on high-quality assets you can believe in for many years to come.
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To be clear, buying and holding doesn’t mean buying blindly. It means investing in stocks or other assets that have strong underlying value, then holding them until that value can be fully realized — regardless of short-term volatility. These exchange-traded funds (ETFs) may see some short-term ups and downs, but have tactics that make them the very best ETFs to buy and hold for the future:
| ETF | Assets | Expense ratio |
| Vanguard S&P 500 ETF (VOO) | $657 billion | 0.03% |
| Vanguard Dividend Appreciation ETF (VIG) | $89 billion | 0.05% |
| Health Care Select Sector SPDR Fund (XLV) | $33 billion | 0.08% |
| Invesco QQQ Trust (QQQ) | $339 billion | 0.20% |
| Schwab U.S. Small-Cap ETF (SCHA) | $17 billion | 0.04% |
| Vanguard FTSE Europe ETF (VGK) | $25 billion | 0.06% |
| iShares Core U.S. Aggregate Bond ETF (AGG) | $127 billion | 0.03% |
Vanguard S&P 500 ETF (VOO)
Assets:
$657 billion Expense ratio: 0.03%
On a list of the best long-term ETFs to buy and hold, a fund tied to the S&P 500 index of the largest U.S. companies is a logical place to start. It’s among the most closely followed benchmarks of stocks in the world, and for many investors is a stand-in for the performance of Wall Street in general. Most importantly, the index almost always goes up over the long term. Officially launched in 1957, this index has an average return of more than 10% annually since its inception — though clearly some years have been better or worse along the way. This low-cost Vanguard ETF provides simple, cost-effective exposure to these 500 leading companies, including Apple Inc. (AAPL), Microsoft Corp. (MSFT) and more.
Vanguard Dividend Appreciation ETF (VIG)
Assets: $89 billion Expense ratio: 0.05%
A twist on the prior fund, this leading Vanguard ETF is the largest dividend-oriented fund by assets. Dividends are very attractive to long-term investors because they are consistent profit-sharing moves — which provides both steady income via quarterly payouts as well as proof of strong operations. VIG skips over Big Tech stocks like Nvidia Corp. (NVDA) and Amazon.com Inc. (AMZN) that may be exciting but don’t provide any meaningful dividends just yet. But there is definitely growth potential, with more than 300 dominant blue-chip stocks. And perhaps more important to those looking for the best ETFs to buy and hold, there is arguably more stability in this fund thanks to top holdings like health care stock Eli Lilly & Co. (LLY) and staples retailer Walmart Inc. (WMT).
Health Care Select Sector SPDR Fund (XLV)
Assets: $33 billion Expense ratio: 0.08%
Speaking of stability in the health care sector, this SPDR fund is a popular long-term ETF to buy and hold for folks who want to look outside the sometimes volatile tech sector. Yes, stocks like Nvidia and Palantir Technologies Inc. (PLTR) can put up big gains quickly, but they’re also characterized by the potential for big declines. There is tremendous reliability in the pace of prescriptions, hospital bills and medical product sales during both good and bad economic environments. What’s more, a demographic shift in America and elsewhere is creating more “customers” via aging patients that will naturally need more care in the years to come. That makes XLV a great long-term investment, with more than 60 holdings, including Big Pharma giant Eli Lilly and diversified medical products icon Johnson & Johnson (JNJ).
[Read: 6 of the Best AI ETFs to Buy for 2025]
Invesco QQQ Trust (QQQ)
Assets: $339 billion Expense ratio: 0.2%
Then again, it’s hard to argue against the long-term growth potential of technology if you truly have the nerve to buy and hold. This Nasdaq-100 index fund is a better growth-oriented option than just banking on health care, as it’s tied to the largest 100 stocks listed on the Nasdaq exchange. That means nearly 60% of the QQQ portfolio is in tech giants like Apple, Nvidia and Microsoft and digital communications giants such as Google parent Alphabet Inc. (GOOGL) and Facebook parent Meta Platforms Inc. (META). Tech can be a bit more volatile, as evidenced by the fact that the Nasdaq-100 lost more than 32% in 2022 even as the S&P 500 “only” lost 19% or so on the year. Then again, over the past 12 months, the Nasdaq is up more than 40% compared to 19% or so for the S&P 500 in the same period — proving that if you buy and hold, the potentially bigger losses could be offset by potentially bigger gains.
Schwab U.S. Small-Cap ETF (SCHA)
Assets: $17 billion Expense ratio: 0.04%
Another riskier long-term ETF that prioritizes growth, this Schwab fund is limited to smaller companies that may not be big today but could become future leaders in the years ahead. It holds around 1,700 stocks for an incredibly diversified lineup of companies, led by under-the-radar picks like language learning app Duolingo Inc. (DUOL) and payment software operator Affirm Holdings Inc. (AFRM). This buy-and-hold ETF offers wide diversification and can easily be layered in on top of one of the aforementioned blue-chip funds with almost zero overlap. Furthermore, the top sectors include financials at nearly 20% and industrials at almost 18%, balancing out sector weightings in the typical large-cap portfolio. With a weighted average market cap of about $5 billion, these are not going to be the large and popular companies you’ll find in the typical index fund. However, it’s an interesting supplemental option as a long-term ETF to buy and hold.
Vanguard FTSE Europe ETF (VGK)
Assets: $25 billion Expense ratio: 0.06%
Beyond diversification into other sectors or market values, there is also something to be said for making sure your portfolio is diversified across geographies, too. That’s very clear in 2025 as some of the top-performing stocks this year include European stocks listed on U.S. exchanges. Obviously, it’s harder to research foreign companies — and even the larger names may not be familiar to American investors — but this leading Vanguard index fund does the work for you. It holds more than 1,200 leading companies on the continent, and includes familiar names like Swiss consumer giant Nestle SA (OTC: NSRGY) and Dutch chipmaker ASML Holding NV (ASML). The best long-term ETFs often include multinational U.S. blue chips, and these are similar companies in their scale and risk profile — even if they happen to be headquartered overseas.
iShares Core U.S. Aggregate Bond ETF (AGG)
Assets: $127 billion Expense ratio: 0.03%
As one of the largest bond ETFs, AGG deserves a mention as a representative of fixed-income markets. Bonds are the ultimate investment in stability, operating like loans in reverse; investors are paid regular interest from the bond holders. While the stream of cash is attractive, however, there isn’t a lot of growth in bonds. That said, buy-and-hold investors need to consider the importance of diversification into assets other than stocks, and this “aggregate” bond ETF is a great one-stop shop to achieve that goal. AGG only holds top-rated bonds, but owns government, corporate and securitized mortgage debt across almost 13,000 individual positions. AGG yields 4.5% right now, more than triple the yield of the typical large-cap stock fund. More importantly, it provides cash flow that investors at or near retirement can have confidence in for decades to come.
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7 Best Long-Term ETFs to Buy and Hold originally appeared on usnews.com
Update 06/24/25: This story was previously published at an earlier date and has been updated with new information.
