Investors looking for top exchange traded funds (ETFs) to invest in certainly have plenty of options to choose from. Whether you’re a truly passive investor, one who likes to pick stocks, or an investor who wants a mix of both, I’d argue there’s room in most investor portfolios for at least a base of stocks that will track the overall benchmark investors are looking to at least match.
Indeed, there are a number of leading investors from Warren Buffett to other high-profile institutional money managers who believe most investors should just rely on the long-term growth large-cap U.S. stocks can provide over the long-term. Beating the benchmarks may seem like an exhilarating ride higher, particularly in bull markets. But in down markets, investing in the same higher-beta names can lead to larger downside than the overall market.
So, with that in mind, let’s dive into four ETFs that have the potential to provide the kind of growth most long-term investors are after, with a decidedly less volatile risk profile.
Invesco QQQ Trust (QQQ)
In this market, it’s clear that the investors who have truly “won” or beaten most U.S.-based market index benchmarks have been those who have been overweight technology.
For those looking to track companies that are almost exclusively tied to the sort of high-growth trends underpinning most tech companies, the Invesco QQQ Trust (QQQ | QQQ Price Prediction) is often the preferred way to play this trend.
This fund tracks the 100 largest companies in the Nasdaq, the leading exchange globally for world-class blue-chip tech stocks.
Indeed, investing in such a fund will exclude most of the smaller-cap tech companies out there that may have higher growth potential, but substantially higher risk. Indeed, I think QQQ is the preferred way to play this investing trend for those with a long-term time horizon mostly for this reason. And while QQQ is slightly more costly than most of the other index funds I focus on (including the names on this list) with an expense ratio of 0.2%, that’s still cheap for the kind of exposure this fund provides to stocks that tend to move quickly on a day to day basis.
Vanguard Utilities ETF (VPU)
https://a673b.bigscoots-temp.com/companies/nvda/
Readers who have followed my work for any extended period of time will know what I think of the utilities sector. Indeed, the rise of AI and other technologies accentuates the need for more power. If that’s the case, and investors truly believe AI will be as powerful as long-term catalyst as many make it out to be, buying this entire sector seems like a good move.
One of the best ways to do so is via the Vanguard Utilities ETF (VPU), a fund which provides broad-based exposure to a range of companies offering various utility services from electricity to natural gas, water, and other key assets.
For those who believe we’ll not only see underlying demographic trends continue in the right direction, but who think AI will accelerate these trends, I think VPU and its impressive 2.6% dividend yield along with its relatively attractive expense ratio are worth buying here.
iShares Core MSCI EAFE (IEFA)
For investors looking for more international exposure in their portfolios (perhaps they’re over-indexed to the U.S. market), the iShares Core MSCI EAFE ETF (IEFA) is an excellent option to consider.
This fund actually takes out all North American companies, focusing on Europe, Australia, Asia and other markets in the far east. Such companies are ones that many investors have absolutely no exposure to. So, for those who may be diversified elsewhere (either via holding the other three ETFs on this list or individual stocks), I’d recommend having some exposure to a fund like IEFA to further balance out potential portfolio risk down the line.
This thesis is also supported by some strong performance from international stocks relative to U.S. stocks, at least so far in 2025. For those who think U.S. exceptionalism and outperformance in the equity markets may wane in the years to come, IEFA is a top way for investors to protect their portfolios in my view.
Vanguard Total Stock Market ETF (VTI)
Last, but certainly not least on this list of top ETFs for long-term investors to consider buying is Vanguard Total Stock Market ETF (VTI), a fund that tracks literally all the stocks in the market.
The unmatched breadth investors get from owning this ETF is notable, with thousands of companies of all sizes included in this particular fund. That means that while investors will gain exposure to some of the highest-growth parts of the market, a greater percentage of one’s holdings will be in smaller companies. Such companies tend to have higher upside over the long-term, while that hasn’t been the case during the more recent Mag 7 melt-up we’ve seen in the market.
I’m of the view that long-term market dynamics are more likely than not to take hold once again. For those in such a boat, VTI and its 3 basis point (o.o3%) expense ratio is a top option to consider right now.
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