4 Simple Vanguard ETFs Worth Buying and Holding for the Next 20 Years
Key PointsIdeal long-term investments are broadly diversified, ultra-cheap, and offer solid growth opportunities.
Investors often focus on whether an ETF is a smart purchase at the moment. They consider whether it is a buy-low opportunity or how it will perform in the next six to twelve months. However, for those with long-term goals, such as retirement, the crucial question is how the investment will fare over the span of several decades. At the end of the day, the performance of an investment in the short term is irrelevant.
Short-term circumstances do not really matter either. The key is whether the investment has the potential to build wealth and grow into a significant sum of money by the time it is ultimately needed. When constructing a portfolio intended for withdrawal 20 years in the future, diversification remains essential. Focusing solely on the top tech ETFs or the most promising artificial intelligence (AI) stocks, while intuitive, may not provide adequate downside protection if the trend turns against these themes.
While diversification might limit upside potential, it also offers a measure of protection to smooth out the investment journey.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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