Want $1 million in retirement? 9 ETFs to buy now and hold for decades.

The question of How much money will you need to retire? It’s complicated as it’s different for each of us depending on factors like expected longevity, household expenses and general cost of living, and whether we have sources of income lined up in addition to Social Security Benefits.

Many people bet on $1 million, and that’s a reasonable amount for many of us. However, if your retirement is far away, you may be aiming for considerably more, as inflation will decrease the purchasing power of your savings over time. Here are nine ETFs (exchange-traded funds) to consider that could help you reach your goal of $1 million or more.

How to Achieve Solid Portfolio Growth with ETFs

First, learn how money grows and how much you can accumulate over time. O S&P 500 The America’s 500 largest companies index has averaged annual returns close to 10% (ignoring inflation) over long periods, so let’s be a little conservative and assume average annual growth of 8%:

Calculations by author.

Clearly, you can do very well with a simple, low-fee broad market index fund. Here are three to consider in the table below. (Note that an expense ratio is an annual fee.)

Source: Morningstar.com and Vanguard.com, as of June 17, 2024.
*Since inception, September 7, 2010.

Here’s a little about each:

• S&P 500 Vanguard ETF: S&P 500 index funds are among the most common, for good reason. They are focused on 500 of the largest companies in America, which together represent about 80% of the entire US market.

• Vanguard Total Stock Market ETF: It is reasonable to consider this ETF as well, because it aims to include all US stocks, including small and mid-cap stocks.

• Vanguard Total World Stock ETF: This ETF aims to cover virtually every stock in the world.

The low-fee index funds above may be all you need to build a secure financial future for yourself.

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Do you want to try to boost the growth of your portfolio?

If you can handle more risk and volatility, consider parking part of your portfolio in more aggressive producers, like the ETFs below, each of which focuses on a specific market sector. They have an impressive track record, but understand that past results do not determine future results. So think about which market sectors you are most bullish on and keep an eye on the sectors you invest in.

Source: Morningstar.com, June 17, 2024.

Here’s a little about each of the ETFs above:

• VanEck Semiconductors ETF: This ETF holds about 25 stocks, with nearly a quarter of its value recently in Nvidia alone.

• Technology Selection Sector SPDR ETF: This ETF covers semiconductors, IT consultants, software, computers and more. It recently held about 65 shares, with the first few spots going to Microsoft, Litterand Nvidia.

• Healthcare Select Sector SPDR ETF: This ETF includes companies involved in everything from biotechnology and pharmaceuticals to healthcare equipment and supplies. His 64 appearances were recently led by Eli Lilly, UnitedHealthIt is Johnson & Johnson.

• iShares US Home Construction ETF: This ETF is focused on North American companies that build homes. Recently, it held around 44 shares, with its largest holdings being DR Horton, LennarIt is NVR.

• Vanguard Information Technology ETF: This ETF has recently boasted 313 stocks, with its largest holdings recently being Microsoft, Apple, Nvidia, BroadcomIt is Sales force.

• Fidelity Cloud Computing ETF: This ETF is relatively new, having launched in 2021, so there are no long-term returns to share in the table above. Know that it lost 41% in 2022 and gained 53% in 2023. It is likely to remain volatile, but consider this if you are optimistic about cloud computing. Your 48 recently featured entries OracleMicrosoft and intention.

Keep this in mind

When saving and investing for retirement, make sure you have an overall retirement plan and stick to it. Making good use of tax-advantaged retirement accounts like IRAs and 401(k)s is also a good idea. Also remember that you can park most of your money in one or more broad market index ETFs and a portion of your portfolio in a few ETFs that you hope will grow even faster.

Should you invest $1,000 in the Vanguard S&P 500 ETF right now?

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Selena Maranjian has positions at Apple, Microsoft, Nvidia, Oracle and Salesforce. The Motley Fool has positions and recommends Apple, Intuit, Lennar, Microsoft, NVR, Nvidia, Oracle, Salesforce, Vanguard Index Funds-Vanguard Total Stock Market ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The motley fool has a disclosure policy.

Want $1 million in retirement? 9 ETFs to buy now and hold for decades. was originally published by The Motley Fool