The summary of ‘8 Best ETF to Buy and Hold Forever – This is a Millionaire's Portfolio’

00:00:00

In this part of the video, the presenter reviews the first of the top 8 ETFs suitable for long-term investment, specifically the Invesco S&P 500 Equal Weight ETF (RSP). The ETF includes over 500 stocks representing the S&P 500, distinguished by its equal weighting, meaning each company has an equal stake. This requires quarterly rebalancing to maintain equal weightings, enhancing diversification and reducing risk compared to other ETFs that might have a significant concentration in one or two companies. Financial details of RSP are: trading at $149.69, with year-to-date returns of 7%, one-year returns of over 13%, five-year returns of 10%, and ten-year returns just over 11%. The expense ratio is notably low at 0.2%. The sector allocation is diverse, with Industrials leading at over 50%. The presenter appreciates the diversification and low expense ratio but notes its relatively lower short-term performance compared to other funds.

00:03:00

In this part of the video, the speaker shares their personal experience of having their computer hacked, which led to their YouTube channel being compromised. To prevent further incidents, they emphasize the importance of using a VPN (Virtual Private Network). A VPN provides an added layer of security, especially on public networks, by hiding IP addresses and creating encrypted connections. They recommend Private Internet Access (PIA) for its cross-platform support and affordability, mentioning a promotion for a subscription at a reduced rate with extra free months.

The segment then transitions to discussing the Vanguard Total Stock Market Index Fund (VTI), highlighting its extensive diversification with over 3,500 companies across various sectors. Despite its wide range, it has a significant focus on technology, with Apple being a top holding. The ETF is praised for its performance, low expense ratio of 0.03%, and broad exposure to the market, making it a good option for minimizing risk.

Finally, the speaker introduces the Schwab U.S. Dividend Equity ETF (SCHD), noting its strong performance and strategy of including companies based on fundamental screens such as cash flow to debt ratio, return on expenses, and dividend yield. This ETF is suggested for those looking to diversify their portfolio with high-performing dividend options.

00:06:00

In this part of the video, two exchange-traded funds (ETFs) are discussed in detail.

First, a dividend-focused ETF is highlighted for its 10-year history of consistent dividend payouts and focus on high-quality, large-cap companies, excluding REITs. It has diversification rules, including capping individual securities at 4% and any one sector at 25% of the total fund, to avoid lopsided risk. The ETF’s top sectors are Health, Tech, Finance, and Consumer non-durables, with notable companies like Verizon, UPS, Pepsi, and Coca-Cola. The ETF is praised for its low expense ratio (0.06%) and solid long-term performance.

Next, the Invesco QQQ Trust, which tracks the NASDAQ 100 index, is described. This ETF focuses heavily on technology and innovation, comprising over 50% of the fund, with major holdings in companies such as Apple, Microsoft, Nvidia, Tesla, and Alphabet. While not very diverse, it is known for high growth and high risk, with significant performance fluctuations. QQQ’s recent trading value and its strong historical performance are noted.

The presenter also emphasizes the option of buying fractional shares for investors who find full shares too expensive, depending on the broker.

00:09:00

In this part of the video, the speaker discusses various ETFs and their benefits, starting with the flexibility of purchasing fractional shares on platforms like Robinhood. They highlight the Invesco QQQ ETF, noting its 0.2% expense ratio and potential for growth due to the rise of artificial intelligence. Next, the Vanguard S&P 500 ETF (VOO) is introduced, emphasizing its low expense ratio of 0.03% and strong historical performance. Lastly, the Vanguard Information Technology ETF (VGT) is reviewed, detailing its strategy to replicate the MSCI U.S. Information Technology Index, its heavy investments in companies like Apple and Microsoft, and its impressive long-term performance with a 0.1% expense ratio.

00:12:00

In this segment of the video, the speaker discusses two specific ETFs. The first is the Vanguard International Dividend Appreciation ETF (VIGI) which tracks the performance of the S&P Global Dividend Growers Index. It focuses on international markets, primarily in Europe and the Pacific, investing in companies such as Sony, Nestle, and Novartis. The ETF is valued at $73.69, showing consistent returns with a 0.15% expense ratio and a 2.5% yield dividend.

The second ETF is the VanEck Semiconductor ETF (SMH) which monitors the semiconductor sector index and includes companies like ASML, Intel, AMD, Broadcom, Nvidia, and TSMC. Trading at $150.36, it boasts strong performance figures: 46% year-to-date, 45% over one year, and 24% over five years, with a 0.35% expense ratio. Despite being focused on semiconductors, it shows significant growth potential, though with higher risk. Towards the end, the speaker hints at the importance of bond ETFs for a near-perfect portfolio, though this topic is not covered in the segment.

00:15:00

In this part of the video, the speaker highlights the final balance amounting to 867-5309 and notes their surprise that none of their fellow Gen Xers have remarked on it. They also encourage viewers to check out a related video linked in the segment.