The Only 4 ETFs You Really Need: VOO, VYM, JEPI, and SOXX

As a smart investor, can you really cover all of your bases with just four exchange traded funds (ETFs)? The answer is yes, but only if you pick the right funds.

There will undoubtedly be some overlap between the four ETFs I’ve selected for you today. Nevertheless, there are enough differences to justify these picks and to consider putting 25% of your investable capital into each of them.

Of course, it’s your call and you’ll definitely want to conduct your due diligence before considering buying any of these ETFs. At the end of the day, however, you’ll surely agree that combining the following funds can help you build wealth forever.

VOO: Wide Diversification, Rock-Bottom Fees

If you’re going to stock to only four funds, it makes sense to have at least one ETF that tracks the S&P 500. To achieve that objective, investors can turn to the Vanguard S&P 500 ETF (NYSEARCA:VOO).

With approximately 500 stocks in its holdings, the Vanguard S&P 500 ETF is market capitalization weighted and covers all of the most important sectors of the U.S. economy. From technology to industrials, utilities, energy, consumer discretionary, and more, the VOO ETF ensures immediate, broad-based, multi-market stock exposure.

To sweeten the deal, the Vanguard S&P 500 ETF also provides passive income seekers with a 1.17% annualized dividend yield. Perhaps the fund’s most prominent feature, though is its rock-bottom fee structure.

Believe it or not, the Vanguard S&P 500 ETF only deducts 0.03% worth of annual management fees (known as the expense ratio). We’re talking about $0.03 per $100 per year to get portfolio exposure to large-cap winners like Apple (NASDAQ:AAPL), Coca-Cola (NYSE:KO), Exxon Mobil (NYSE:XOM), Home Depot (NYSE:HD), and too many others to mention.

VYM: Income Opportunities Through Better Yield

Sure, you could play it safe and just allocate 100% of your capital into the Vanguard S&P 500 ETF. However, to boost your income potential for the long term, you can buy and hold the Vanguard High Dividend Yield Index Fund ETF Shares (NYSEARCA:VYM).

With its 2.57% annualized dividend yield, the VYM ETF will be more attractive to income-focused investors than the Vanguard S&P 500 ETF. Furthermore, much like the VOO ETF, the Vanguard High Dividend Yield Index Fund ETF Shares bears a low fee schedule as its expense ratio is only 0.06%.

You’ll also get plenty of diversification with VYM. As of August 28, 2025, I found a whopping 578 stocks in the holdings list of the Vanguard High Dividend Yield Index Fund ETF Shares.

The VYM ETF’s basket of stocks includes famous names like Walmart (NYSE:WMT), Broadcom (NASDAQ:AVGO), JPMorgan Chase (NYSE:JPM), and Procter & Gamble (NYSE:PG). All in all, the Vanguard High Dividend Yield Index Fund ETF Shares delivers respectable yield and pairs well with VOO for multi-sector diversification.

JEPI: Monthly Income, Tax Efficiency

Can you go even higher than VYM’s decent annual yield? You certainly can if you put 25% of your investable capital into the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI).

For one thing, the JPMorgan Equity Premium Income ETF provides decent diversification with 126 stocks in its holdings list. Lots of blue-chip businesses across multiple sectors are represented: Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA), Mastercard (NYSE:MA), utilities giant The Southern Company (NYSE:SO), and so on.

This is a low-fee fund with a 0.35% expense ratio, and the JEPI ETF uses options-trading strategies to generate a huge 8.38% annual dividend yield. Not only that, but the JPMorgan Equity Premium Income ETF pays its cash distributions on a monthly basis instead of the typical quarterly payout schedule.

Plus, there may be tax advantages since the JEPI ETF doesn’t treat its dividend payments as distributed capital gains. It’s another potential benefit that makes the JPMorgan Equity Premium Income ETF a worthy addition to VOO and VYM.

SOXX: Aim for Tech-Fueled Growth

With a 0.69% dividend yield and a 0.34% expense ratio, the iShares Semiconductor ETF (NASDAQ:SOXX), might not seem like anything special at first glance. Yet, the SOXX ETF is an ideal complement to the other funds mentioned today because of its growth characteristics.

As of August 28, 2025, the iShares Semiconductor ETF’s share price increased by 149.4% during the past five years. I think you’ll agree that this fund’s rapid growth makes up for its mediocre dividend yield.

The secret sauce here is the SOXX ETF’s heavy allocation into successful semiconductor firms. In a technology-driven world, you won’t go wrong with strong revenue generators like Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), Taiwan Semiconductor Manufacturing (NYSE:TSM), and Micron Technology (NASDAQ:MU).

While the iShares Semiconductor ETF doesn’t diversify across many sectors or offer a high dividend yield, it can be combined with VOO, VYM, and JEPI for a powerful growth impact. So, feel free to put all four of these funds into your portfolio mix as they’ll collectively cover everything you’ll need to build wealth for years.

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