We have made it through a rather Dickensian start to 2025, with investors seeing the best of times in certain trades like Bitcoin and international stocks, as well as the worst of times for once-popular megacaps like Tesla Inc. (ticker: TSLA) and Apple Inc. (AAPL).
There’s still a lot of discussion about where we will wind up by the end of the year. Will inflation heat up as trade wars cause supply chain disruptions? Will the housing market continue to cool? Will the government shut down soon and exacerbate public sector cutbacks?
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It’s enough to give you a headache if you follow the news. But there is an elegantly simple solution to all this uncertainty. Namely, don’t sweat the short-term trends and instead focus on long-term performance through patience and low-cost index funds.
The following list offers seven of the best long-term exchange-traded funds (ETFs) to buy and hold for consistent returns in 2025, 2035 and beyond. They may not double your money overnight, but patient and disciplined investors can use them to grow their nest eggs significantly over time.
| ETF | Expense ratio | Assets under management |
| iShares Core S&P 500 ETF (IVV) | 0.03% | $641 billion |
| SPDR S&P Midcap 400 ETF Trust (MDY) | 0.23% | $23 billion |
| iShares Core S&P Small-Cap ETF (IJR) | 0.06% | $83 billion |
| Invesco QQQ Trust (QQQ) | 0.20% | $357 billion |
| Vanguard Dividend Appreciation ETF (VYM) | 0.06% | $61 billion |
| Vanguard Total International Stock ETF (VXUS) | 0.05% | $96 billion |
| Vanguard Total Bond Market ETF (BND) | 0.03% | $131 billion |
iShares Core S&P 500 ETF (IVV)
Assets: $641 billion Expense ratio: 0.03%
Technically the “smallest” of the leading S&P 500 index funds, this iShares offering is a look-alike alternative to the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY). All have massive assets under management, however, and a low cost structure that makes them strong picks across the board. The strategy is simple: These funds offer exposure to the 500 most dominant U.S. stocks, including Nvidia Corp. (NVDA), Apple and Microsoft Corp. (MSFT). This “who’s who” of domestic stocks is an obvious place for any investor to start.
SPDR S&P Midcap 400 ETF Trust (MDY)
Assets: $23 billion Expense ratio: 0.23%
This fund is focused on the next tier down in U.S. markets. S&P Global divides the stock market into three tranches, lining up the top 1,500 U.S. corporations by size then slicing them up into the 500 largest companies (the S&P 500 represented in the prior fund), 501 through 900 (the mid-cap S&P 400 index, which is the focus of this fund) and then 901 through 1,500 coming after that (the small-cap S&P 600). MDY allows investors to add exposure to more modest-sized companies such as investment platform Interactive Brokers Group Inc. (IBKR) and engineering and construction firm Emcor Group Inc. (EME), among others. These 400 components in MDY have an average market cap of just over $10 billion, but they also have the potential to grow into tomorrow’s leaders.
iShares Core S&P Small-Cap ETF (IJR)
Assets: $83 billion Expense ratio: 0.06%
This S&P 600 index fund goes even smaller than the prior funds to focus on true up-and-comers. The average market cap of the holdings is just $3 billion, with many components under the $1 billion mark, giving this ETF a slightly higher risk profile and a foothold in companies that have a long runway ahead of them. Top stocks right now include private defense firm Kratos Defense & Security Solutions Inc. (KTOS) and mortgage and lending company Mr. Cooper Group Inc. (COOP). There is admittedly more risk in smaller companies that have less resources to weather downturns, but a diversified portfolio of small-cap stocks tends to offset any strike outs with plenty of home runs over the long haul.
Invesco QQQ Trust (QQQ)
Assets: $357 billion Expense ratio: 0.20%
Thinking about index funds in a way other than size, the Invesco QQQ Trust is tied to the Nasdaq-100 index, which tracks the largest stocks listed on this tech-heavy exchange. In fact, more than half of all assets are in the tech sector — and trillion-dollar megacaps Apple, Microsoft, Nvidia and Amazon.com Inc. (AMZN) make up roughly 30% of assets. Investors who want true diversification should be aware of this bias, but so should investors looking to lean into the long-term potential of technology companies. If you’re interested in the long-term growth potential of things like artificial intelligence (AI), mobile payments and cloud computing, QQQ could be a riskier but slightly more attractive option than broader index funds.
[Read: 7 Best Tech ETFs to Buy in 2025]
Vanguard Dividend Appreciation ETF (VYM)
Assets: $61 billion Expense ratio: 0.06%
Flipping the script on a riskier but growth-oriented approach, this leading Vanguard fund is one of the most popular dividend-focused investments on Wall Street. The low-risk income potential of these companies is appealing to folks who embrace the idea that slow and steady is what wins the race to retirement. This fund tracks an index of almost 600 companies that have above-average dividend payouts compared to the broader market and a track record of steady dividend growth. VYM currently delivers a 2.6% 30-day SEC yield, more than a full percentage point higher than the S&P 500’s yield at present. Top holdings include well-known and stable dividend payers like JPMorgan Chase & Co. (JPM) and Big Oil titan Exxon Mobil Corp. (XOM).
Vanguard Total International Stock ETF (VXUS)
Assets: $96 billion Expense ratio: 0.05%
Looking outside of the U.S., a long-term ETF worth consideration to balance out domestic holdings is this fund that is wholly composed of leading international stocks. VXUS gives investors access to more than 8,500 stocks, including familiar leaders like hardware giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Chinese tech leader Tencent Holdings Ltd. (OTC: TCEHY) and German information technology giant Sap SE (SAP), among others. Top countries represented in the portfolio include Japan at 15% and the U.K. and China at 9% apiece. As we have seen so far in 2025, a global approach sometimes allows for outperformance when conditions are right. And in the long run, this diversification can help smooth out bumps in the road at home and provide more reliable returns.
Vanguard Total Bond Market ETF (BND)
Assets: $131 billion Expense ratio: 0.03%
Looking beyond just stocks, BND is the most popular long-term ETF for investors interested in investment-grade bonds. It offers diversified exposure to the bond market in one simple and broad-based fund, with an enormous portfolio of over 11,000 bonds from the most creditworthy entities. Currently, about 69% of total assets are in government bonds, with another 25% or so in corporate debt for organizations like Bank of America Corp. (BAC) and Microsoft, then the rest in “securitized” bonds that focus on pools of mortgage-related assets. If you’re a long-term, hands-off investor, then this one-stop holding provides exposure to the entirety of the domestic bond market without a lot of risk or complexity. It also yields a hefty 4.4% right now — about three times the S&P 500 — so if you’re looking for long-term income in addition to share appreciation, this fund is a good option.
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7 Best Long-Term ETFs to Buy and Hold originally appeared on usnews.com
Update 07/24/25: This story was published at an earlier date and has been updated with new information.
