The best long-term ETFs allow investors to easily build a diversified portfolio. They can provide broad exposure across many asset classes, industries, and geographies. This diversification can help an investor reduce risk without sacrificing long-term returns.
There are many exchange-traded funds (ETFs) built for long-term investors. Here's a closer look at several top ETFs that make ideal buy-and-hold investments.
Best long-term ETFs
The best ETFs for the long term hold a diversified portfolio of stocks while charging a very low ETF expense ratio. Although many funds share those two key characteristics, here are the top ETFs for long-term investors:
Exchange-Traded Fund (ETF)
1. Vanguard S&P 500 ETF
NYSEMKT: VOO
Key Data Points
The Vanguard S&P 500 ETF (VOO +0.27%) is an index fund designed to track the S&P 500 index. The index represents 500 of the largest U.S. publicly traded companies. The ETF's goals are to closely follow the S&P 500's returns, the primary benchmark for the overall returns of the U.S. stock market.
It offers a high potential for growth, making it an ideal long-term investment. Over the last 50 years, the average stock market return was 8% annually, as measured by the S&P 500. The Vanguard S&P 500 ETF has only slightly underperformed that benchmark's returns since its inception due to its modest ETF expense ratio.
Like the S&P 500, the ETF uses a market-weighted strategy, giving a higher weighting to the largest companies. Its top 10 holdings made up over 35% of its total net assets in late 2025, giving investors relatively concentrated exposure to the largest companies in the index.
The ETF offers investors exposure to the largest U.S. stocks for a very low cost. Its expense ratio of 0.03% is significantly less than the 0.22% average expense ratio of similar funds. Investors would only pay $0.30 in annual management fees per $1,000 invested in the ETF, compared to $2.20 per year for every $1,000 invested in the average fund.
2. Invesco S&P 500 Equal Weight ETF
NYSEMKT: RSP
Key Data Points
The Invesco S&P 500 Equal Weight ETF (RSP -0.86%) is also an index fund designed to track the stocks in the S&P 500. However, it uses an equal-weight approach instead of one based on market cap. As a result, the ETF's top 10 holdings represent less than 3% of its total assets.
This approach reduces concentration risk by providing broad exposure across the 500 stocks in the S&P 500. The ETF rebalances its holdings quarterly to ensure each holding remains a relatively equal portion of the fund's assets.
The ETF has a relatively low expense ratio of 0.2%. That's a reasonable fee to gain broad, equal-weight exposure to 500 of the largest public companies in the U.S.
Gross Expense Ratio
3. iShares Russell 1000 Growth ETF
NYSEMKT: IWF
Key Data Points
The iShares Russell 1000 Growth ETF (IWF +0.93%) provides exposure to U.S. companies expected to increase their earnings at an above-average rate compared to the broader stock market. The fund held shares of slightly less than 400 companies as of late 2025.
The ETF takes a market-weighted approach. Its top 10 holdings made up almost 60% of its total assets. Given its growth focus, technology stocks comprised a significant portion of the fund's holdings at more than 50% in late 2025.
The ETF charges investors a reasonable expense ratio of 0.18%. That's a fair price to pay to gain long-term exposure to growth stocks.
4. Vanguard Real Estate ETF
NYSEMKT: VNQ
Key Data Points
5. Schwab U.S. Dividend Equity ETF
NYSEMKT: SCHD
Key Data Points
Top 5 Sectors | Top 5 Geographies |
|---|---|
Financials (22.1% of the fund's holdings) | Japan (23.6%) |
Industrials (19.6%) | United Kingdom (14.5%) |
Healthcare (10.4%) | France (10%) |
Consumer discretionary (10.2%) | Germany (9.5%) |
Information technology (8.5%) | Switzerland (8.8%) |
The iShares Core MSCI EAFE ETF charges a very low expense ratio of 0.07%, allowing investors to add some international exposure to their portfolios at a low cost and benefit from the long-term growth of the global economy.
7. iShares Core 60/40 Balanced Allocation ETF
Related investing topics
Why ETFs are good for long-term investors
ETFs can be great building blocks for long-term investors. They can provide:
- Broad exposure: ETFs allow you to instantly invest across the entire stock market, different countries, and specific industries.
- Diversification: ETFs enable you to build a diversified portfolio quickly.
- Lower risk: They can help reduce the overall risk profile of your portfolio.
- Low costs: Many of the best long-term ETFs have a relatively low expense ratio.
- Passive investments: ETFs are very passive investments. They allow you to invest in the market without actively managing a portfolio of stocks.
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