Best ETFs to Buy and Hold Forever: Set-and-Forget Investing

By James Wilson · 2026-01-04

Best ETFs to Buy and Hold Forever

The best investors often do the least. Instead of constantly trading, they buy quality investments and hold for decades. ETFs (Exchange-Traded Funds) make this easier than ever. Here are the best ETFs to buy and never sell.

Why "Buy and Hold Forever" Works

The evidence is clear:

• S&P 500 has returned ~10% annually over 100 years
• Most active traders underperform the market
• Frequent trading = taxes + fees + mistakes
• Time in market beats timing the market

The strategy: Own the entire market, reinvest dividends, wait.

Characteristics of Forever ETFs

What makes an ETF "buy and hold forever" worthy?

✅ Broad diversification - Hundreds or thousands of stocks ✅ Ultra-low fees - Less than 0.1% expense ratio ✅ Proven track record - Decades of history ✅ High liquidity - Easy to buy/sell if needed ✅ Covers essential markets - Not niche or trendy

The Core Forever ETFs

1. Total US Stock Market ETFs

What they hold: Every publicly traded US company (3,000-4,000 stocks)

Why forever: Own all of American capitalism in one fund

| ETF | Expense Ratio | Holdings | |-----|---------------|----------| | VTI (Vanguard) | 0.03% | 3,900+ | | ITOT (iShares) | 0.03% | 3,700+ | | SWTSX (Schwab) | 0.03% | 3,000+ |

The winner: Any of these. Differences are minimal.

2. S&P 500 ETFs

What they hold: 500 largest US companies

Why forever: The benchmark for American stocks

| ETF | Expense Ratio | AUM | |-----|---------------|-----| | VOO (Vanguard) | 0.03% | $400B+ | | SPY (SPDR) | 0.09% | $500B+ | | IVV (iShares) | 0.03% | $350B+ |

Best choice: VOO or IVV (lower fees than SPY)

3. Total International Stock ETFs

What they hold: Thousands of stocks outside the US

Why forever: Own the rest of the world

| ETF | Expense Ratio | Holdings | |-----|---------------|----------| | VXUS (Vanguard) | 0.07% | 8,000+ | | IXUS (iShares) | 0.07% | 4,400+ |

Why it matters: US won't always outperform. Diversify globally.

4. Total World Stock ETFs

What they hold: US + International combined

Why forever: One fund, entire planet

| ETF | Expense Ratio | Holdings | |-----|---------------|----------| | VT (Vanguard) | 0.07% | 9,900+ | | ACWI (iShares) | 0.32% | 2,300+ |

Simplest approach: Just buy VT. Done.

5. Total Bond Market ETFs

What they hold: Thousands of US bonds

Why include: Reduces volatility, especially near retirement

| ETF | Expense Ratio | Holdings | |-----|---------------|----------| | BND (Vanguard) | 0.03% | 10,000+ | | AGG (iShares) | 0.03% | 12,000+ |

Role in portfolio: 20-40% allocation as you near retirement.

The Simplest Forever Portfolios

One-Fund Solution

• 100% VT (Total World Stock)
• Literally one purchase, own the world

Two-Fund Solution

• 60% VTI (US Stocks)
• 40% VXUS (International Stocks)

Three-Fund Portfolio (Classic)

• 50% VTI (US Stocks)
• 30% VXUS (International Stocks)
• 20% BND (Bonds)

Adjust bond allocation based on age and risk tolerance.

Specialty ETFs Worth Holding Forever

Dividend-Focused

SCHD (Schwab US Dividend Equity)

• 0.06% expense ratio
• Quality dividend companies
• Strong long-term performance

VIG (Vanguard Dividend Appreciation)

• 0.06% expense ratio
• Companies with 10+ years dividend growth

Growth-Focused

VUG (Vanguard Growth)

• 0.04% expense ratio
• Large-cap growth companies

QQQM (Invesco NASDAQ 100)

• 0.15% expense ratio
• Tech-heavy, higher growth potential

ETFs NOT to Hold Forever

Avoid for long-term holding:

❌ Leveraged ETFs (2x, 3x) - Decay over time ❌ Inverse ETFs - Designed for short-term hedging ❌ Niche/Thematic ETFs - Trends fade ❌ High-fee ETFs - Fees compound against you ❌ Illiquid ETFs - Wide bid-ask spreads

Building Your Forever Portfolio

Step 1: Choose Your Core

Pick VTI, VOO, or VT as foundation.

Step 2: Add International (If Not VT)

VXUS for global diversification.

Step 3: Consider Bonds

BND if you want stability (especially approaching retirement).

Step 4: Optional Tilt

Small allocation to dividend or growth ETFs if desired.

Step 5: Automate and Forget

Set up automatic investments. Check annually at most.

The Math of Forever Holding

$10,000 invested for 30 years at 8% average return:

| Expense Ratio | Final Value | Fees Paid | |---------------|-------------|-----------| | 0.03% | $97,610 | $889 | | 0.50% | $87,550 | $10,949 | | 1.00% | $78,430 | $20,069 |

Low fees compound into tens of thousands saved.

Why You Shouldn't Tinker

Common mistakes that hurt returns:

1. Selling during crashes - Locks in losses
2. Chasing hot sectors - Buying high, selling low
3. Over-diversifying - 50 ETFs is not better than 3
4. Checking too often - Leads to emotional decisions
5. Trying to time markets - Almost always fails

When to Actually Sell

Legitimate reasons to sell:

• You need the money
• Rebalancing to target allocation
• Tax-loss harvesting
• Life circumstances change dramatically

Not reasons to sell:

• Market is down
• News is scary
• Someone has a "hot tip"
• FOMO on trending investments

Rebalancing: The Only Maintenance Needed

Once yearly:

1. Check if allocations drifted significantly (>5%)
2. If yes, sell winners and buy losers to rebalance
3. Consider tax implications (do in tax-advantaged accounts if possible)

That's it. No daily checking. No trading. No stress.

The Bottom Line

The best ETFs to hold forever are:

• Broadly diversified
• Ultra-low cost
• From reputable providers
• Covering essential markets

VTI, VOO, VXUS, VT, BND—these aren't exciting. They won't make cocktail party conversation. But they'll quietly build wealth for decades while you live your life.

Related Reading

→ ETFs vs Individual Stocks - Compare approaches

→ How to Invest $1,000 - Start your ETF portfolio

→ Dollar Cost Averaging Explained - Best strategy for ETF investing

Start Your Forever Portfolio

→ Research ETFs - Analyze funds before buying

→ Build Your Allocation - Test different mixes

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Past performance doesn't guarantee future results. All investing involves risk. This is educational content, not financial advice.