Robinhood merchants have a standing for getting high-growth stocks. Actually, just a few of the most well liked stocks on the platform match that description, along with Virgin Galactic Holdings, Penn Nationwide Gaming, and Tesla.
Nonetheless, no fewer than seven exchange-traded funds, or ETFs, appear in Robinhood’s current Excessive 100 file. Whereas hundreds and hundreds of Robinhood merchants are literally making an attempt to get in on the underside flooring of the next massive issue, many are moreover creating good, low-maintenance, long-term funding portfolios with the magic of index funds.
In case you’re looking for some investments that might produce great long-term returns whereas nonetheless allowing you to sleep soundly at night, listed beneath are three great ETFs.
Among the thrilling tech traits
The easiest way we pay for gadgets and firms has radically reworked over the earlier decade or so, and might most likely proceed to take motion. Financial know-how consists of price processing companies like Sq. and PayPal, financial software program program companies like Intuit and Bill.com, and companies that make it less complicated and less expensive to borrow cash like LendingTree, merely to name a few.
In its place of making an attempt to pick winners inside the home, it may be a larger thought to simply perceive that “a rising tide lifts all ships” and spend cash on the entire fintech leaders. The Worldwide X FinTech ETF (NASDAQ:FINX) does merely that. Its portfolio incorporates 33 of most likely probably the most compelling fintech stocks, along with the 5 companies talked about inside the remaining paragraph, along with just a few of probably the most enjoyable internationally listed fintech leaders that may not be accessible by means of Robinhood.
With a 0.68% expense ratio, the Worldwide X FinTech ETF shouldn’t be low-cost, nonetheless it’s not too steep of a price to pay for an all-in-one portfolio that might revenue from one of many important thrilling growth markets of this expertise.
Get rich slowly with dividends
With charges of curiosity near doc lows, discovering investments that pay an sincere yield and never utilizing a ton of menace is perhaps tough. Vanguard Extreme Dividend Yield ETF (NYSEMKT:VYM) is one amongst a unusual few.
This fund invests in a varied portfolio of larger than 400 stocks that pay above-average dividends. Excessive holdings embrace Johnson & Johnson, Procter & Gamble, and JPMorgan Chase. These stocks are robust funding picks on their very personal, nonetheless it might probably be a wonderful increased thought to private all of these extreme yielders as part of an ETF.
The Vanguard Extreme Dividend Yield ETF has a dividend yield of about 4.3% as of this writing and has a rock-bottom 0.06% expense ratio. This isn’t merely an income play; over the earlier decade, the fund has generated full returns averaging over 11% per yr.
Market-beating full returns with comparatively low volatility
One sector notably absent from Robinhood’s Excessive 100 file — every in stock and ETF sort — is precise property. There are a few good causes Robinhood merchants may want to change that. First, precise property stocks are usually a lot much less dangerous than the rest of the market and may diversify a stock portfolio.
Second, precise property stocks are usually great dividend payers. The Vanguard Precise Property ETF (NYSEMKT:VNQ) pays 3.5% as of this writing and invests in a portfolio of 181 precise property funding trusts, or REITs.
Lastly, whereas many merchants take into account precise property as a boring and low-return funding, that’s a complete misunderstanding. Truly, over the earlier 20 years, precise property funding trusts have produced increased full returns than the S&P 500.
It is usually worth mentioning that many dividend-focused ETFs, similar to the Vanguard Extreme Dividend ETF talked about earlier, significantly exclude precise property stocks, so every might probably be great additions to your long-term funding method.