7 Best Long-Term ETFs to Buy and Hold
When it comes to stock market investing, many people tend to watch trendy tickers like Nvidia Corp. (ticker: NVDA) and Tesla Inc. (TSLA). However, a significant amount of investment research shows the perils of this kind of “active” management that involves picking individual stocks at the perfect time.
In fact, one report calculated that “active” strategies in some corners of the market lagged their index fund peers so badly in 2024 that they logged their worst comparative performance since the dark days of 2009 after the financial crisis.
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It’s human nature to want to have a hand at the wheel, of course, so a completely passive approach to investing probably isn’t realistic for most investors. In that case, this list of the following long-term ETFs to buy and hold splits the difference by offering tactical approaches in a way that also prioritizes low costs and long-term performance through passive indexing.
If you’re interested in measuring your performance in years or decades rather than days or weeks — or if you simply don’t have the stomach to actively trade in 2025 — consider this list of the seven best long-term ETFs to buy and hold:
| Long-term ETF | Assets | Expense ratio |
| iShares Core S&P 500 ETF (IVV) | $572 billion | 0.03% |
| iShares Core S&P Small-Cap ETF (IJR) | $75 billion | 0.06% |
| Invesco QQQ Trust (QQQ) | $324 billion | 0.20% |
| Vanguard Dividend Appreciation ETF (VIG) | $86 billion | 0.05% |
| Vanguard Total World Stock ETF (VT) | $43 billion | 0.06% |
| Vanguard Total Bond Market ETF (BND) | $127 billion | 0.03% |
| iShares Gold Trust (IAU) | $47 billion | 0.25% |
iShares Core S&P 500 ETF (IVV)
Assets: $572 billion Expense ratio: 0.03%
To be honest, it’s hard to pick among the leading S&P 500 index funds out there as many have huge asset hoards and rock-bottom expenses. But while IVV is not the largest of this batch, it stands tall with more than $570 billion in assets to make it the third-largest ETF in the entire U.S. stock market — behind two other S&P index funds, the SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO). No matter which of the trio you choose, you’ll be getting simple one-stop exposure to the 500 most dominant U.S. stocks, including Apple Inc. (AAPL) and Microsoft Corp. (MSFT). If you’re a long-term, low-risk investor then an S&P 500 index fund like IVV is probably the first place to start.
iShares Core S&P Small-Cap ETF (IJR)
Assets: $75 billion Expense ratio: 0.06%
Another great long-term ETF from iShares is this fund that is focus on the S&P 600 index of small-cap stocks. With the way S&P sets up its indexes, you have the 500 largest stocks in the prior funds, Nos. 501 through 900 as the mid-sized companies that make up the S&P 400, and then this final tranche of Nos. 901 through 1,500 to make up the small-cap S&P 600. Since you’re skipping the 900 largest picks, many of these companies are lesser known and the average market cap is only around $2.8 billion. That makes these companies a bit riskier but also gives more room to run if things go well — and in the long term, that can be a profitable proposition as small companies become tomorrow’s large-cap leaders.
Invesco QQQ Trust (QQQ)
Assets: $324 billion Expense ratio: 0.20%
Another long-term ETF with a growth focus, the Invesco QQQ Trust is tied to the Nasdaq-100 index of the largest stocks listed on this tech-heavy stock exchange. That means Apple, Microsoft, Nvidia and Amazon.com Inc. (AMZN) make up the top four holdings — and thanks to a weighting based on market value, more than half of all assets are in the technology sector. Investors should be aware of this bias, as the QQQ ETF is definitely less diversified than some of the other alternatives on this list. That said, if you’re interested in the most popular technology stocks, then this ETF is a simple one-stop shop to tap into the top stocks in this sector with tremendous long-term growth potential.
[Read: 10 Stocks Warren Buffett Just Bought and Sold]
Vanguard Dividend Appreciation ETF (VIG)
Assets: $86 billion Expense ratio: 0.05%
The flip side of riskier small-cap companies or a tech-focused portfolio with growth potential is VIG, the largest dividend-focused ETF out there. This long-term ETF invests in large-cap stocks with a record of growing their dividends year over year, and features blue-chip leaders like chipmaker Broadcom Inc. (AVGO), pharma giant Eli Lilly & Co. (LLY) and megabank JPMorgan Chase & Co. (JPM). With about 340 total dividend payers making up the portfolio of this long-term dividend ETF, it is highly diversified among the most stable companies on Wall Street. That will give investors peace of mind that their portfolio can hang tough in any market environment.
Vanguard Total World Stock ETF (VT)
Assets: $43 billion Expense ratio: 0.06%
A wide-ranging fund that incorporates all of the former long-term ETF strategies along with an extra layer of geographic diversification, VT holds almost 10,000 stocks in the U.S. as well as abroad. As the name implies, it is designed to give you exposure to every kind of stock in every market in the world. This “total world” fund is weighted towards the biggest names, so familiar domestic blue chips like Apple will still rank as top components. In fact, roughly 60% of the portfolio is in the U.S., with other leading regions being Japan and the UK. Particularly for long-term investors who simply want to play the general growth potential of the stock market regardless of sector or geography, this “kitchen sink” ETF could be a good long-term option.
Vanguard Total Bond Market ETF (BND)
Assets: $127 billion Expense ratio: 0.03%
With a focus on diversification again, but this time beyond the stock market and into fixed-income markets, BND is a one-stop fund for broad exposure to the bond market. Bonds are largely uncorrelated to stocks, which means they can hang tough even if we see deep declines in the S&P 500. That said, the disparity can cut both ways as BND is actually down over the last five years after a long-term uptrend in interest rates from post-pandemic lows; meanwhile, the S&P 500 is up 90% or so in the same period. But keep in mind that diversification isn’t about optimization, but rather protecting your portfolio for the long haul. Given current market uncertainty and the prospect of lower rates in the next year or two, the short-term environment may be improving for bonds.
iShares Gold Trust (IAU)
Assets: $47 billion Expense ratio: 0.25%
Speaking of stability and diversification across asset classes, gold stands out as a great alternative to both stocks and bonds. It has significantly outperformed both stocks and bonds so far in 2025 thanks to its low-risk and inflation-protected positioning. Admittedly, long-term investments in gold tend to underperform investments in growth stocks. That said, there is decidedly less risk — and in the current market, that is very appealing to many investors. IAU one of the largest and most affordable ETFs to get direct exposure to gold, as the fund is tied to physical bullion prices rather than gold miners or other related investments. Shares are up around 40% in the last 12 months to prove the profit potential of a gold investment in tough times, and unfortunately there are likely to be more periods like this one on a long investment horizon.
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7 Best Long-Term ETFs to Buy and Hold originally appeared on usnews.com
Update 05/27/25: This story was previously published at an earlier date and has been updated with new information.