The U.S. stock market has been on a remarkable journey since late 2022, with indexes soaring back fueled by a resilient economy and anticipation of an AI revolution. Whether you rode the Wall Street rally or missed out on the bull market recovery, there’s no need to worry. It’s always a great time to invest, and three exchange-traded funds (ETFs) can help you build wealth for the long term.
First up is the SPDR S&P 500 ETF (SPY 1.24%), which tracks the S&P 500 index, a collection of 500 top U.S. companies. Known as the world’s most famous stock index, the S&P 500 has a history of resilience and has delivered annual returns near 10%, making it a solid foundation for any portfolio.
For those seeking dividends, the Schwab U.S. Dividend Equity ETF (SCHD 0.91%) may be a good fit. This ETF tracks the Dow Jones U.S. Dividend 100 index, offering a dividend yield of 3.3% from blue-chip dividend-paying companies. Managed actively with a low expense ratio, this fund provides a balance of income and growth potential.
Investors looking for more risk and potential reward may consider Cathie Wood’s ARK Innovation ETF (ARKK 1.20%). Focused on high growth and innovation, this fund tracks trends like cryptocurrency, electric vehicles, and AI. While the fund has faced challenges recently, its success with Tesla highlights the potential for big wins in the innovation space.
Whether you prefer a solid foundation, dividend income, or high growth potential, these ETFs offer a range of options for investors. Remember, it’s not about timing the market, but about staying invested for the long term. Justin Pope has no position in any of the stocks mentioned, and The Motley Fool has positions in and recommends Berkshire Hathaway and Tesla, as well as recommending 3M.
