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Missing the Bull Market Complex? 5 ETFs You Can Buy Today
Are you kicking yourself for missing the recent bull market rally? Okay, stop.
Yes, with Standard & Poor's 500The stock market, as measured by the Index (which includes about 500 companies that together account for about 80% of the entire U.S. market), fell 19% in 2023 and has risen a solid 9% in the most recent year to date. but that doesn't mean the relapse is over.
Keep in mind that the market is perfectly capable of going up significantly in consecutive years, or vice versa. For example, in 2019, 2020, and 2021, the S&P 500 index has risen by 29%, 16%, and 27%, respectively. you may think you missed the boat at the end of 2019, but you're wrong.
It is foolish to try to guess what the market will do next. Instead, just invest for the long term - with money that can be invested for years. Here are five exchange-traded funds (ETFs) to consider for long-term investing. Each has a good track record and low fees.
fund |
Expense Ratio |
5-Year Average Annualized Return Rate |
10 Average Annualized Rate of Return (ARR) |
---|---|---|---|
Schwab's U.S. Big Pan Growth Fund (SCHG) |
0.04% |
19.2% |
16% |
iShares Semiconductor ETFs(SOXX) |
0.35% |
30.4% |
24.2% |
Pioneer Growth ETF (VUG) |
0.04% |
17.7% |
14.9% |
Invesco S&P 500 Equal Weight ETF (RSP) |
0.20% |
11.7% |
10.5% |
Pioneer Dividend Plus ETF (VIG) |
0.06% |
12.5% |
11.4% |
Data source: Morningstar.com: Data source: Morningstar.com.
1. Schwab U.S. Big Pan Growth ETF
Schwab US Large-Cap Growth ETF (NYSEMKT: SCHG)It is an index fund that aims to provide approximately the same return (minus ultra-low fees) as the Dow Jones US Large-Cap Growth Total Stock Market Index. The fund focuses on large, relatively fast-growing companies, and its largest recent holdings (about 245 holdings) areMicrosoft,Applerespond in singingNvidiaThe ETF's expense ratio (annual fee) is 0.04%. The ETF's fee rate (annual fee) is 0.04%, which means you'll only pay $4 per year for a $10,000 investment. Fees are low!
2. iShares Semiconductors ETF
iShares Semiconductor ETFs (NASDAQ: SOXX)Tracking the NYSE Semiconductor Index is well worth considering because it focuses on semiconductors, which are many of the things we own and use every day, even refrigerators and washing machines.
Holding shares of this ETF gives you immediate access to about 30 semiconductor specialists, such as Nvidia,Broadcom),Advanced Micro Devices(math.) andQualcommThe ETF has been doing well in the past and will probably continue to do so.) This ETF has done well in the past and will probably continue to do so, but there's no guarantee - its returns can vary greatly from year to year, even more so than these other ETFs.
3. Pioneer Growth ETF
Vanguard Growth ETF (NYSEMKT: VUG)It aims to provide a snapshot of the CRSP U.S. Big Rock Growth Index, minus a few low fees. It focuses primarily on companies that are growing at an above-average rate, with Microsoft, Apple, and Nvidia among the top 200 holdings in its recent history, andAmazon and other "Magnificent Seven" stocks.
4. Invesco S&P 500 Equal Weight ETF
Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP)Unlike a typical index fund, it is an equal-weighted fund rather than a market capitalization-weighted fund. This means that each of the 500 or so companies held by the fund has as much impact on the fund's returns as any other, and in a market capitalization-weighted index, the companies with the highest market capitalization (e.g., Apple, Microsoft, INVISTA, etc.) have a much greater impact on the fund's returns than those with a smaller market capitalization.
So if you want the smaller companies in the index to have more impact and avoid stocks like the "Seven Giants" dominating returns, then this ETF is worth considering. (Granted, these stocks have consistently outperformed over the long term, so the ETF may be able to dissipate its greater diversification with lower returns.)
5. Pioneer Dividend Plus ETF
Finally.Pioneer Dividend Plus ETF (NYSEMKT: VIG)offers an alternative investment strategy that focuses on companies that not only pay dividends, but have increased their dividend payments for at least the past 10 years. Dividend-paying companies tend to be more established than others and have relatively reliable cash flows to fund shareholder payouts. Recently, Microsoft, Apple, Broadcom andJP Morgan Chase (bank)It is the largest holding of the ETF (about 315 companies). The ETF's dividend yield was recently around 1.7%.
So don't worry about missing out on the bull market's recent resurgence, as it's likely to continue for some time. What really matters is how much your investment has grown between the time you bought and the time you sold. For best results, buy with the aim of holding for the long term and add money regularly to your best investment strategy.
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John Mackey, former chief executive officer of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. JPMorgan Chase is an advertising name partner of The Ascent, a Motley Fool company. Selena Maranjian has holdings in Amazon, Apple, Microsoft, NVIDIA, Qualcomm, and iShares Trust - iShares Semiconductor ETF. The Motley Fool's positions in Advanced Micro Devices, Amazon, Apple, JPMorgan Chase, Microsoft, Nvidia, Qualcomm, Vanguard Index Funds - Vanguard Growth ETF, Vanguard Specialized Funds - Vanguard Dividend ETF, Vanguard Dividend ETF, and iShares Trust - iShares Semiconductor ETF are recommended. Funds - Vanguard Dividend Appreciation ETF and iShares Trust - iShares Semiconductor ETF. The Motley Fool recommends Broadcom, and the following options are recommended: Microsoft The Motley Fool recommends the following options for Broadcom: the January 2026 $395 Call Option Long and the January 2026 $405 Call Option Short on Microsoft. The Motley Fool has a disclosure policy.
Missing the Bull Market Complex? 5 ETFs You Can Buy Today.