5 ETFs To Buy And Hold For The Next 5 Years

U.S stocks have been extremely shaky lately and with Federal Reserve uncertainty hanging over the market, the near term may continue to be rocky. Add in emerging market worries, general China concerns, and lackluster wage growth, and we could be in for a rocky stretch right now.

Do you have time to stay invested? Consider these longer term ETFs.

In times like these, it can be very useful to look past the current turmoil and to consider investments that will be solid not just this year, but five years out as well. In the interest of taking this longer view, consider a few of the ETFs below which could make for great selections for investors who are seeking buy-and-hold type investments in this turbulent time:

SPDR S&P Dividend ETF (SDY - ETF report)

Investors in it for the long haul probably want to take a look at some stocks which have proven to be great dividend payers over decades. Fortunately this is easy to find in the ETF world by looking at any number of the ‘dividend aristocrat’ funds current on the market. These look at stocks that have been consistently raising dividends year after year for decades, making them extremely promising choices for income-focused investors.

While there are a number of choices on this list, let’s look at SDY from SPDR today. This fund follows the S&P High Yield Dividend Aristocrats Index which holds 100 stocks in its basket. The focus here is on dividend payers which have raised dividends for at least 20 consecutive years (read 5 Dividend ETFs for Growth).

Financials take the biggest chunk here while staples and industrials round out the top three, though no single company makes up more than 3% of the total. The yield is a solid but uninspiring 2.7%, but you know you will get a list of great companies with impressive track records by buying into SDY.

Market Vectors Morningstar Wide Moat ETF (MOAT - ETF report)

If you are looking for companies that can stand the test of time, it might be a good idea to look to ‘wide moat’ stocks. These companies have built up defensible competitive advantages that make it very difficult for others to unseat them. This can include high switching costs, low cost provider, or network effects, and it can give some firms a huge edge.

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