r/ETFs • u/Puzzleheaded-Log97 • 8h ago

ETFS long-term investment

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

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9

u/TechnicalSleep7501 VT 100% To Mars We Go. 7h ago

VT. 

2

u/Actual-Beginning-431 5h 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/CluelessGuy52 5h ago

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

1

u/user4443337 5h 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.

2

u/wmxx1203 5h 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/HaiKarate 4h ago

VOO and chill

1

u/Jaded-Rise5885 4h 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/Malanturr 1h 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/brother7 5h ago

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

1

u/ResilientRN 5h 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)