Top best ETF for long term investment.

[Hakiza]

Help me understand the top best ETF for long term investment.

[Dan]

Hello Hakiza,

As an ETF investor, you have to come up with your trading strategy. One thing that you need to consider in this strategy is the amount of time that you are willing to hold on to your market position.

You need to select the ETF suitable for long-term investing when you decide to be a long-term investor. Therefore, you will buy and hold that ETF for a long time until you get the profit you need, after which you sell off your position.

 Index-based ET may be excellent if you want a long-term investment. These ETFs seek to track the functioning of benchmarks.

Vanguard Total Stock Market ETF (VTI) is an excellent index-based ETF for long term investing. In this ETF, you have the advantage of investing in various sectors. It has a variety of market capitalization stocks that you can use. It is also an efficient ETF, and you incur low expenses while using it.

The SPDR S&P 500 ETF (SPY) is also another excellent ETF for long term purposes. It allures many investors into it. It tends to follow the performance of the S&P 500 index. You cannot reinvest this fund since it is a unit investment trust.

The iShares Core MSCI EAFE ETF (IEFA) is also worth the mention. Its benchmarks the performance of the MSCI EAFE and reveals to evolved market stocks in places like Asia and Europe. It also incorporates small-capitalization in harmony with the market.

There are many other good long-term ETF that you can use, and your choice will depend on the strategy you use.