However, no less than seven exchange-traded funds, or ETFs, are on Robinhood’s current Top 100 list. While millions of Robinhood investors are certainly trying to get on the first floor of the next big thing, many are also creating smart, low-maintenance, long-term investment portfolios with the magic of index funds.
If you’re looking for investments that could produce great long-term returns while still allowing you to sleep soundly at night, here are three great ETFs.
One of the most exciting tech trends
The way we pay for goods and services has changed dramatically over the past decade and will likely continue to do so. Financial technology includes payment processing companies like Square and Pay Pal, financial software publishers like Intuit and Bill.comand businesses that make borrowing money easier and more profitable, such as LendingTree, Just to name a few.
Instead of trying to pick winners in space, it might be better to just realize that “a rising tide lifts all ships” and invest in all leaders in fintech. the FNB Global X FinTech (NASDAQ: FINX) does just that. Its portfolio contains 33 of the most compelling fintech stocks, including the five companies mentioned in the last paragraph, as well as some of the most exciting fintech leaders listed internationally that may not be available through Robinhood.
With an expense ratio of 0.68%, the Global X FinTech ETF is not cheap, but it is not too expensive for an all-in-one portfolio that could benefit from one of the markets of most exciting growth in this market. generation.
Get rich slowly with dividends
With interest rates close to their all-time low, finding investments that pay a decent return without a ton of risk can be tricky. Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is one of the few.
This fund invests in a diversified portfolio of over 400 stocks that pay above-average dividends. The main titles include Johnson & Johnson, Procter & Gamble, and JPMorgan Chase. These stocks are sound investment choices in and of themselves, but it might make even more sense to own all of those high returns as part of an ETF.
The Vanguard High Dividend Yield ETF has a dividend yield of approximately 4.3% at the time of writing and an expense ratio of 0.06% at its lowest. It’s not just a revenue game; Over the past decade, the fund has generated total returns of over 11% per year on average.
Total returns above the market with relatively low volatility
Real estate is a sector particularly absent from Robinhood’s Top 100 list – both in stocks and in ETF form. There are a few good reasons why Robinhood investors might want to change this. First, real estate stocks tend to be less volatile than the rest of the market and can diversify a portfolio of stocks.
Second, real estate stocks tend to be excellent dividend payers. the Vanguard Immobilier ETFs (NYSEMKT: VNQ) pays 3.5% at the time of writing this article and invests in a portfolio of 181 Real Estate Investment Trusts, or REITs.
Finally, while many investors view real estate as a boring, low-return investment, this is a complete misconception. In fact, over the past 20 years, real estate investment trusts have produced better total returns than the S&P 500.
It’s also worth mentioning that many dividend-focused ETFs, like the previously mentioned Vanguard High Dividend ETF, specifically exclude real estate stocks, so both could be great additions to your long-term investing strategy.