Title: U.S. Stock Market Soars: 3 ETFs to Consider for Long-Term Wealth Building
The U.S. stock market has been on a remarkable ride since late 2022, fueled by a resilient economy and anticipation of an artificial intelligence revolution. Despite the challenges faced 18 months ago, the stock market has proven its durability time and time again.
Whether you enjoyed Wall Street’s rally or missed out on the bull market recovery, there’s no need to worry. It’s always a great time to invest, and these three exchange-traded funds (ETFs) can help you build wealth for decades to come.
1. SPDR S&P 500 ETF:
Consider the SPDR S&P 500 ETF (NYSEMKT: SPY) to support your portfolio with a solid and simple foundation. This ETF tracks the S&P 500 index, which consists of 500 top U.S. companies and is known as one of the most famous stock indexes globally. With an average annual return near 10%, the S&P 500 is a proven wealth-building tool that every long-term investor should consider.
2. Schwab US Dividend Equity ETF:
For investors seeking dividends, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a popular choice. This ETF tracks the Dow Jones U.S. Dividend 100 index, comprised of 100 prominent dividend-paying U.S. corporations. With a dividend yield of 3.3% and actively managed to protect investors, this ETF offers a balance of income and growth potential.
3. ARK Innovation ETF:
Investors looking for higher risk and potential reward may be interested in Cathie Wood’s ARK Innovation ETF (NYSEMKT: ARKK). Focused on high growth and innovation, this fund tracks trends like cryptocurrency, electric vehicles, and artificial intelligence. While more volatile and actively managed, the fund’s success with investments like Tesla showcases its potential for significant returns.
In conclusion, whether you choose a broad market ETF like SPDR S&P 500, a dividend-focused ETF like Schwab U.S. Dividend Equity, or an innovation-focused ETF like ARK Innovation, investing in ETFs can help you build wealth over the long term. Consider your investment goals and risk tolerance when selecting the right ETF for your portfolio.
Source: The Motley Fool
