Artificial intelligence stocks and gold miners outperformed in 2025, but the broader market as a whole had a heck of a year, with roughly 16% returns for the S&P 500. While that figure is smaller in the near term, it proves the value of long-term exchange-traded funds (ETFs) — namely, that a simple, low-cost portfolio can consistently grow your wealth over time.
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Tech trends come and go, and commodity prices can be volatile. But over several years or even several decades, the stock market consistently puts up significant returns. Based on almost 100 years of data, the largest U.S. stocks have delivered an average of about 12% each year and a median of 15% annually. Even at that lower rate of return, a nest egg of $100,000 will grow to $1.7 million in 25 years.
While hot stocks come and go, research consistently shows that a simple, long-term approach — focused on low-cost ETFs and minimal trading — often delivers better results than active management. The following list of high-quality long-term ETFs are strong tools to follow this approach, letting time do the heavy lifting for you.
| ETF | Expense ratio | 10-year annualized return |
| Vanguard S&P 500 ETF (ticker: VOO) | 0.03% | 15.2% |
| Vanguard Dividend Appreciation ETF (VIG) | 0.05% | 13.6% |
| Invesco QQQ Trust (QQQ) | 0.18% | 20.0% |
| iShares Russell 1000 Growth ETF (IWF) | 0.18% | 18.3% |
| Schwab U.S. Small-Cap ETF (SCHA) | 0.04% | 10.5% |
| Vanguard Total International Stock ETF (VXUS) | 0.05% | 8.5% |
| Vanguard Total Bond Market ETF (BND) | 0.03% | 1.9% |
Vanguard S&P 500 ETF (VOO)
It’s hard to go wrong with this dominant S&P 500 index fund, which tracks one of the most closely followed benchmarks in the world. VOO provides low-cost exposure to 500 of the largest U.S. companies, including Apple Inc. (AAPL) and Microsoft Corp. (MSFT), and aims to deliver the same daily return that investors see on tickers across their favorite investing website or financial news show. VOO is not the only such option out there, with the SPDR S&P 500 ETF Trust (SPY) and iShares Core S&P 500 ETF (IVV) both offering similar exposure. All are great foundational options for a “set it and forget it” ETF to buy and hold.
Vanguard Dividend Appreciation ETF (VIG)
While growth in share price over the long haul is attractive for many investors, VIG supplements this stability with income potential. It does this by focusing on companies with a consistent history of increasing dividends, including mega-bank JPMorgan Chase & Co. (JPM) and chipmaker Broadcom Inc. (AVGO). This emphasis on dividends can reduce volatility even further by relying on companies with consistent profits that fuel steady payouts. While providing exposure to more than 300 high-quality blue-chip stocks, you won’t find non-dividend-payers like mega-cap tech stocks here, though Apple and Microsoft are in the top holdings. However, a bit less exposure to this sector may be appealing to low-risk investors.
Invesco QQQ Trust (QQQ)
Of course, if you don’t mind a bias toward the more growth-oriented tech stocks, QQQ is a good option, with nearly two-thirds of assets in this sector. This fund tracks the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq exchange. As a result, technology dominates the portfolio, with major positions in Apple, Microsoft, Nvidia Corp. (NVDA), Alphabet Inc. (GOOG, GOOGL) and Meta Platforms Inc. (META). Technology stocks can be volatile in the short term, but these mega-caps are among the biggest stocks in the world for good reason. For investors willing to accept bigger short-term swings in pursuit of higher returns, QQQ remains a popular long-term choice.
iShares Russell 1000 Growth ETF (IWF)
For investors who are interested in a bit more growth in their portfolio but want a more fulsome list than the tech-heavy QQQ, this iShares growth ETF takes the stocks that make up the Russell 1000 index and screens them for the best growth criteria. That includes metrics such as sales growth, profit margin and earnings potential. The result is a focused list of about 400 companies with strong fundamentals that should give long-term ETF investors confidence to buy and hold.
[Read: 10 Best Growth Stocks to Buy for 2026]
Schwab U.S. Small-Cap ETF (SCHA)
A different approach to long-term growth investing, SCHA provides exposure to roughly 1,700 small-cap U.S. companies. These companies individually may carry more risk, but the diversification provides long-term investors confidence — as well as potential upside, as some of these smaller firms will become tomorrow’s market leaders. With an average market capitalization of around $5 billion, this Charles Schwab index fund is a great way to dabble in up-and-coming stocks without the challenges of picking individual winners and losers. It’s also less dependent on tech stocks, led by financial services at almost 18% of the portfolio.
Vanguard Total International Stock ETF (VXUS)
Looking beyond size and sector approaches, another important factor in picking the best long-term ETF is geographic diversification. That’s where this “ex-U.S.” fund from Vanguard comes in, with a worldwide approach that includes about 8,600 total stocks outside the U.S. But don’t fear that these will be unknown or unproven companies, with familiar names like Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Dutch tech leader ASML Holding N.V. (ASML) and Swiss consumer staples giant Nestle S.A. (NESN.SW). However, these multinationals typically don’t appear in domestic ETFs like an S&P 500 or Nasdaq fund simply because of their headquarters. If you want extra exposure to established global brands that happen to be located outside our borders, VXUS is a great long-term holding.
Vanguard Total Bond Market ETF (BND)
It’s hard for many investors to look beyond just stocks, as these assets dominate the headlines. However, fixed-income instruments are an incredibly powerful way to provide stability and regular paydays. The approach of BND is deceptively simple, offering diversified exposure to the bond market with an enormous portfolio of more than 11,000 investment-grade bonds. This includes debt securities from top corporations like Bank of America Corp. (BAC), U.S. Treasury bonds and other issuances that are at a comparatively lower risk of default. For investors at or near retirement who want to live off their hard-fought investment gains for the next 20 or 30 years, bonds are a powerful defensive tool.
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7 Best Long-Term ETFs to Buy and Hold originally appeared on usnews.com
Update 01/07/26: This story was published at an earlier date and has been updated with new information.
