ETFs, or exchange-traded funds, are popular investment securities offered by many brokers as one of their tradable assets. Long-term ETFs can be a great investment. These securities can be bought and sold just like regular stocks, but an ETF can represent a variety of other assets, including different stocks, commodities, and bonds. They are generally considered good long-term investments, but you should know which are the best overall and most promising. That is why Traders Union experts have reviewed the market and found the best ETFs to buy and hold as of 2023.
How long-term ETFs work
Exchange-traded funds are usually used to track the price of many securities at once, especially when these securities represent a certain market or industry. Long-term ETFs are the ones you can hold for at least three years, but there’s no upper limit: you can purchase and hold the best ETFs for a couple of decades. However, not every ETF is good in the long term. Here’s the list of the best ETFs a long-term investor can buy in 2023.
iShares Core Growth Allocation ETF (AOR)
Launched in 2008, this ETF tracks the investment result of a proprietary index with a portfolio that has its capital divided the following way: 60% goes to equity and 40% is allocated to fixed-income funds. It allows you to avoid excessive volatility while still providing pretty high income in the long term. It has a net assets fund of about $2 billion right now, and it costs about $49 per share.
iShares Core U.S. Aggregate Bond ETF (AGG)
This security aims to track the performance of the Bloomberg US Aggregate Bond index which includes the entire market of US investment-grade bonds. It allocated 80% of its funds to securities of that index. It has about $85 billion in assets as of February 2023, and these ETFs are traded at about $98 per share.
iShares Core MSCI EAFE ETF (IEFA)
This ETF intends to track the performance of the MSCI EAFE IMI index fund. It is focused on different kinds of equities from the markets of developed countries, not including the US and Canada. The fund generally allocates 80% of its capital to these equities. Launched in 2012, it currently has around $96 billion in total net assets, and it’s traded at about $66 per share.
Schwab U.S. Dividend Equity ETF (SCHD)
This fund aims to track the performance of dividend-yielding equities of US companies. Launched in 2011, it’s now worth about $48 billion in total net assets. It allocates 90% of its funds to the underlying assets, and it’s trading at about $76 per share, according to Traders Union data