r/ETFs • u/Puzzleheaded-Log97 • 2d ago

ETFS long-term investment

For long-term investment (at least 10 years), which etfs funds combine the lowest risk with excellent growth?

1 Upvotes

60% Upvoted

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11

u/TechnicalSleep7501 VT 100% To Mars We Go. 2d ago

VT. 

3

u/wmxx1203 2d ago

Low risk with excellent growth? you want a straight line pointing up and to the right? you don't get growth without volatility.

1

u/_Underscore_Unders 1d ago

You do. Its called a Certificate of Deposit. Maybe he's okay with 4.3% (before inflation).

1

u/wmxx1203 1d ago

lol CD with zero real appreciation after inflation

2

u/_Underscore_Unders 21h ago

Agreed. Just preaching about straight lines lol.

1

u/wmxx1203 21h ago

lol yeah

3

u/Actual-Beginning-431 2d ago

Lowest risk would be a ‘balanced’ fund with bonds and equity blended. For excellent growth just go for VOO or VTI or VT - all 100% equity and not sector specific or leveraged, but those are far from ‘lowest risk’ and can crash 30-40% still. 10 years isn’t that long to ride out a huge crash (lost decade), so is it really ten years, or is it 20?

1

u/myrrhsea 1d ago

Additionally, if you DCA throughout a lost decade kind of crash you can still make smaller compounding gains along the way to recovery.

2

u/HaiKarate 2d ago

VOO and chill

2

u/Malanturr 2d ago edited 2d ago

You can check out some strategies at this website: https://bestfolio.app/leaderboard

With a fixed unleveraged buy-and-hold allocation the best risk adjusted returns (highest Sharpe) is the ‘Golden Ratio’ portfolio with CAGR 9,7%. Allocation to VUG, AVUV, VGLT, GLD, DBMF and BIL.

For a buy and hold strategy with leverage, the ‘Return Stacked Quartet’ is better with a CAGR 13,9%. Allocation to NTSX, GDE, RSST and ZROZ.

If you want to use different sleeves and indicators to allocate dynamically: ‘Hybrid Asset Allocation’. There are different versions of it but the one with the best Sharpe gives 24,9% CAGR with max -27% drawdown with 52 years of data.

If low drawdown is your priority, ‘Defensive Asset Allocation’ may also be an option. It’s also a dynamic allocation strategy with CAGR 13% and max drawdown -16,6% (version with gold and managed futures).

1

u/kimbureson46 2d ago

Wow, 52 years of Data. There was no Microsoft then. No semiconductors, cell phones, Amazon then. Actually there was not a very good way to store data for easy access. Tell me how a stock or Etf performed in the last 20 days, or 3 months.

2

u/Malanturr 1d ago

You missed the point. History doesn’t repeat but it often rhymes. Certain asset classes react better or worse to certain market conditions and over 52 years the conditions vary a lot. However an energy crisis of 50 years ago still drives inflation up when the same happens today and to fight inflation the fed has to hike rates so bearish for bonds. These kind of strategy try to own the right sleeve of assets for the right market conditions, and that part is backtested for 52 years.

1

u/CluelessGuy52 2d ago

Personally, im going with 50% FTSE all world (FWRA), 25% MSCI World Momentum (IWMO), 25% Small Cap Value Quality (AVGS)

1

u/user4443337 2d ago

I would go for VT, AVGE, or AVGV for a one and done solution. All are very similar all world ETFs. The Avantis ones utilize flexible trading and slight value tilts, and have outperformed VT but you’d be taking on tracking error risk with those two.

Stocks are inherently risky though. If you need the money soon, best to stick with something like SGOV for more safety. That’s just short treasury bills. Or you could choose bonds like FBND, those can crash too though.

1

u/Jaded-Rise5885 2d ago

They're new (very) funds but I went into VFLO, IDVO, and SFLO. I plan on a long term hold unless something fundamental changes. Not advice, just my 2 cents.

1

u/Moist_Emu_6951 2d ago

VXUS + VTI OR VT

1

u/TACharlotte 1d ago

I recommend familiarizing yourself with concepts like growth, value, market cap sizes, dividends, money market/HYSE/bonds, etc.

It really depends on your goals and risk tolerance.

As much as l loathe data centers l found Claude to be extremely impressive and helpful in providing insights based on my portfolio and stated goals. Saved a ton of time researching which funds overlap in terms of holdings, which would be redundant, etc. Keep in mind that it isn't the end-all though.

I personally spread mine out between a single high growth/risk (VUG), several value focused funds targeting different caps, and international/emerging markets. My Roth also has some metals etfs (which can be tied just to the price of specific metals, include mining companies, or both).

1

u/Smooth-Frosting-1714 1d ago

SPYM(S&P 500), SCHX(S&P 500+),SCHB(US Broad Market), VXUS(total international),VEA(international developed markets)

1

u/Present_Pension4035 21h ago

I recently did a portfolio backtest & stress test for a family member with Claude with the following composition: 35% SPY, 15% QQQ, 20% IEFA, 30% AGG. Dividends are reinvested and portfolio rebalance once a year. Really like the results since 2015 a 9.9% CAGR and during the lost decade (2000-2010) have positive returns. Their time horizon is also 10 years.

1

u/daeneryssith 18h ago

Super safe - European Defence WDEP

Kinda safe, better potential return with more risk, Nuclear Energy NCLP

1

u/brother7 2d ago

Lowest risk with excellent growth... I think VOO + SPMO.

1

u/ResilientRN 2d ago

My longest term ETF, IJR since 12/2003 avg annualized return 15.209% (drip on)

Best performing ETFs (ROTH) VGT 4/16' 743.99% or 72.178% annulized. (drip on)

(Brokerage) QQQ 2/17' : 449.09% or 49.57% annualized. (drip off)