in today's video I am going to review the top 8 ETF that a person could feel comfortable with buying and holding forever and by forever I'm really just saying until you're retired kicking back and pina coladas at your beach house and my expectation is that this group of ETFs should continue to be at the top of the list of performance within their Niche for the next 10 to 20 years and if you need a quick refresher an ETF is an exchange traded fund which is just like a mutual fund and that it's made up of dozens hundreds or even thousands of companies that mimic a specific index or a strategy of Investments but an ETF does differ from a mutual fund and that you can buy and sell an ETF on most any exchange or brokerage site regardless of which company is offering or selling the ETF whereas a mutual fund can only be bought and sold from a specific broker like a Vanguard or a Fidelity which is why so many 401ks are kept within one brokerage site and they tend to only offer their specific mutual funds because that's how they make their money and with that covered let's go ahead and get started with our first first ETF of Invesco S P 500 equal weight ETF with the ticker symbol RSP where it holds over 500 stock that are meant to represent or index the S P 500 and the thing that makes this ETF unique is that it is equally weighted meaning that no one company is meant to have a larger stake of ownership within the fund and in order to do that the fund is rebalanced every quarter having the ETF has an equal weight is done maximize the diversification and it's essentially reducing the risk by not putting all your eggs in one basket like most ETFs will have it very heavily weighted with one or two companies for my investments I do like having an ETF like this since it does provide me a little bit of a different risk exposure so many of the ETFs out there have apple as their number one asset and it often makes up 10 or more of the total fund now don't get me wrong I love Apple just as much as anyone else but if they were ever to take a major nosedive they would take most everyone's retirement account with them as for the financials RSP is trading at 149. 69 and has a year-to-date of seven percent the one year is just over 13 percent five you're at 10 and the 10-year is a bit over 11 and one of the best parts about this fund is the expense ratio is only at 0. 2 percent which means you're only paying twenty dollars in expenses for every ten thousand dollars invested but as a quick reminder the total performance of a fund does include all of its expenses and it assumes that any dividends that are paid out are reinvested now when you look at the sectors of this fund it has a different mix for most ETFs simply because it's equally weighted this is why Industrials leads at over 50 percent and it is just below 30 but as I stated before this fund is about diversity and it shows in the sector allocation overall I love the diversification and the low expense ratio on this fund however the downside to this fund is that it performs lower than most of the other funds at least in the shorter term before moving on I want to thank today's sponsor private internet access which is the world's most transparent VPN provider I know about the importance of a VPN firsthand because my computer was hacked about a month back where they took over my entire YouTube channel and they destroyed a lot of my hard work and I've been working very hard to protect myself ever since and one layer of easy protection is to have a VPN or a virtual private Network and since I travel a fair amount I'm on public networks all the time and public networks is considered to be one of the easiest ways for hackers on the same a Wi-Fi network to steal your personal data and one layer of easy protection is to have a VPN or a virtual private Network in layman's terms it hides your IP address and it creates an encrypted tunnel for connection and since private internet accesses software Works across all platforms it protects all my family's Mac OS Windows IOS and Android devices and the subscription covers them all and when I say it covers I'm saying it keeps all of our devices and internet activity encrypted and hidden from our internet service provider Network admins and even government sensors depending on where you live by clicking the link in the description below you can get 83 off private internet access it's just two dollars and three cents a month and you also get four extra free months to provide this a layer of protection across all of your devices the next ETF is the Vanguard Total stock market index fund with the ticker symbol vti since it is an index for the overall total Market it has over 3 500 companies of the fund across a wide array of sectors this ties in with a prior ETF of having a focus on diversity and minimizing risk but this one does it by investing broadly in large mid and small cap stock including value and growth companies it's sort of the American Melting Pot of ETF to provide a very broad exposure even though this is across so many companies the sector is heavy in technology and then it balances out a little bit more between consumer discretionary health care and Industrial and it should be no surprise that the top health company is Apple but at least it isn't over the 10 percent mark As for performance vti is trading at 218 dollars and nine cents and it has a year-to-date of 16.
18 percent the one year is just over 18 percent five year at 11. 3 percent and the 10-year is a bit over 12 percent and just when you thought the expense ratio couldn't get any lower than that last ETF this one comes in at 0. 03 percent which means you're only putting in three dollars in expenses for every ten thousand dollars invested that's next to nothing My overall thoughts are similar on this one where the diversity is great the expenses are incredibly low and it has the American Melting Pot of companies mixed within the fund now on to the next ETF which is the Schwab U.
S dividend Equity ETF with a symbol schd I had to include one of the best performing dividend ETF because it rounds out anyone's portfolio to give that extra option of the dividend if you need it and I love that they leverage a fundamental screen for including companies such as cash flow to debt ratio return on expenses dividend yield and of course the growth rate the goal of this ETF is to to only invest in companies with a 10-year history of consistently paying out dividends they make it a point to have healthy companies within the fund and it's it's not just those dividend traps that push a dividend for failing companies this approach focuses on high quality companies that tend to be large cap and they do exclude reads altogether but I also like that they capped the total invested in a security at four percent and no one sector can exceed 25 percent of the total fund and this helps to ensure that they don't get lopsided with risk and when you look at the top sectors it does tilt more towards Health Tech Finance and consumer not durables and the top 10 companies is quite a bit different from any other ETF today because of the dividend component but they are still high quality companies like Verizon UPS Pepsi and Coca-Cola schd is fairly well known and as of today it is trading at 72. 38 and it has a year-to-date of a negative 3. 24 percent a one year at 2.
48 percent five year at 11. 24 percent and the 10-year is just over 11 percent and it is nice to see that the expense ratio is incredibly low on this one too at only point zero six percent so that's only six dollars for every ten thousand dollars investment the distribution yield from this dividend is at three point five eight percent and this is where you do need to keep in mind that the total return assumes that the dividend is reinvested but if you ever needed to you could take the dividend payout if you wanted but regardless of your choice you will need to pay taxes on all dividends in the year that they're earned to recap this fund it is a dividend focused ETF with high quality companies where it has extremely low expenses and a very solid long-term performance before moving on I have a favor to ask of you if you like my content please consider hitting the like button so my channel could continue to grow and better yet I hope that you consider subscribing so you can be up to date with all my latest content the next fund is the Invesco QQQ trust which tracks the NASDAQ 100 index which is the 100 largest companies that lean in heavily into technology and Innovation which makes up more than fifty percent of the fund followed up by retail trade and health care and when you look at the top 10 Holdings this is more similar to what you would see from most high-tech ETF with apple Microsoft Nvidia Tesla and alphabet in the top 10. this ETF is very different from the first few that I'd already spoken to because this one is not very diverse at all but it is high growth because it is focused on high-tech companies that means that the positive years may be great and the negative years well they're going to be horrible because the emphasis on technology it happens to have the highest highs and the lowest lows but when you balance it out over time there's no question about it this is a great performer QQQ is trading today at 366.
36 and it has a year-to-date over 37 percent one year at 25 percent five years over 16 percent and the 10-year is at 18. 63 percent now I often get a question for people saying hey I can't invest in the stock or ATF because it's too expensive for me well depending on your broker you don't have to buy stock or ETF as a full share you can by fractional shares in fact on many broker sites like Robinhood you can simply buy as much or as little as you like for example this ETF is 366 dollars but you can chip in 20 if you like you can get the same percentage return whether you own a full share or a fractional share for example if you had only eighty dollars a month that you could invest with you could literally put in ten dollars into each ETF that I mentioned today if you wanted to but let's get back to QQQ the expense ratio is at 0. 2 percent so that's twenty dollars for every ten thousand dollars invested I like this fund quite a bit and it has treated me very well over the years and with artificial intelligence blowing up I expect funds like this to do extremely well over the next decade the next fund is the Vanguard S P 500 ETF with the symbol voo this happens to be similar to the Invesco RSP but unlike that ETF this Vanguard version is not weighted instead it attempts to mirror the performance of the S P 500 as best as it can and with it being the top 500 companies they are large cap companies that have been around for quite a while and they have a lot of inertia behind them vo is trading at 402.
95 where the year-to-date is over 16 percent the one year is over 19 five years over 12 percent and the 10-year is at 12. 82 all that performance and the expense ratio is only at 0. 03 percent or just three dollars per ten thousand dollars invested for me this fund is the bread and butter ETF that is foundational and it makes sense for most everyone to have in their portfolio not much bad to say about it it has great performance and it has such a low expense ratio the next fun to review is the Vanguard Information Technology ETF symbol vgt the strategy of vgt is to track the performance of the msci U.
S Information Technology index as closely as possible this is achieved through a full replication strategy which means that the fund holds all the stocks in the index in the same proportions if regulatory constrain trains prevent a full replication the fund does use a form of a sampling strategy to try to approximate the index's key characteristics the sector focus of vjt is in the information technology sector the sector includes companies that develop and sell Hardware software and services related to computers telecommunications and the internet but as you can see it is invested heavily in the system software and Tech hardware and you can see that it matches up perfectly with the Benchmark or the index and when you move over to the Holdings they are heavy with apple and Microsoft but it's nice to see some different players with the likes of Oracle AMD Adobe and Salesforce as of today vjt is trading at 437. 21 where the unit date is up over 39 percent one year is 36 percent Fiverr twenty percent and the 10-year is nearly 21 okay wow this fund has Stellar performance over the long term and the expense ratio is only at 0. 1 percent or ten dollars per ten thousand dollars to me this is another no-brainer EF that is relatively popular and many of you probably already have it but if you don't I highly recommend that you look into it the next font is the Vanguard international dividend appreciation ETF with the symbol vigi where it's meant to track the performance of the s p Global dividend Growers Index this is an international fund to help write out the market fluctuations that may be localized only to the US this is an added layer of diversity that most investors try to incorporate within their portfolio as an added security blanket and when you look at the regions where it's vested it is 75 within Europe and the Pacific and for your context the Pacific is inclusive of countries like Japan and New Zealand and when you look at the companies you can see a mix of common and uncommon names like Sony Nestle sap Novo Nordisk and Novartis as of today this ETF is trading at 73.
69 and it's up over 9 year to date eleven percent at one year and over six percent at the five year and the expense ratio is at 0. 15 percent while having around a 2 half percent yield dividend look a person does not hold this fund for massive growth it's meant for consistent returns in a diverse market and with the added dividend it does give it a nice rounded appeal our next ETF is the van X semiconductor with the symbol SMH where the fund is passively managed like all of the others and it's indexed against the semiconductor sector index where the fund tries to mimic the index like the prior one that I just spoke to and they try to keep the stocks in similar proportions and if you're not aware semiconductors are the building blocks of every electronic device that we have and it can comprise of CPUs gpus or as simple as transistors or the demand for high performing Electronics well I think it's only going to continue to grow which makes me think of the question and I'm being quite serious right now at what age do I let my daughter have a cell phone if you have any advice let me know in the comments below now back to the top 10 Holdings this fund is different from all the others with a unique makeup from companies that include asml buildings TI Intel AMD and broadcom along with some of the few bigger names like Nvidia and tsmc currently SMH is trading at 150. 36 and it's up over 46 year-to-date 45 at the one year 24 of the five years and it's over 24 at the 10-year Mark I believe that this may be the best performance of all the ETF today and that does come with a little bit of an added risk since it is hyper focused on semiconductors this fund also has one of the higher expense ratios at 0.
