4 Simple Vanguard ETFs Worth Buying and Holding for the Next 20 Years
When investing for the long term, diversified exposure is important, but you can also take on a little more risk.
Overview
A lot of people view stocks and ETFs through the lens of whether or not it's a good buy today. Is it a buy-low candidate? How will it do over the next 6 to 12 months? If you're a long-term investor, the better question is, how will it do over the next few decades?
After all, if you're funding goals many years down the road, such as retirement, how an investment performs over the next few months doesn't really matter. Short-term conditions don't really matter either. In reality, it comes down to whether it has the potential to build wealth and grow into a substantial amount of money when you ultimately need it.
Details
If you're building a portfolio today that you'll need to draw from 20 years from now, you still need to be diversified. Loading up on the best tech ETFs or the hottest artificial intelligence (AI) stocks may sound like a good plan. But when this theme turns out of favor, there's almost no downside protection to help you out. A bit of balance may limit your upside, but it'll also provide a degree of protection to smooth out the ride.
Source
Originally published at www.fool.com.