In this article, we will take a look at the 5 best long-term investments for a child. See more such investments by clicking 12 Best Long-Term Investments for a Child.
5. Invesco QQQ Trust (NASDAQ:QQQ)
The US has been and will be the center of tech innovation for decades to come. One of the best long-term investments for a child is to have stakes in leading tech companies. Invesco QQQ Trust gives exposure to the top NASDAQ companies. Some of the top holdings of the fund include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), NVIDIA Corporation (NASDAQ:NVDA) and Tesla Inc. (NASDAQ:TSLA).
4. Custodial IRA
Opening a Custodial IRA account for your child (if they are earning an income) allows your kid to enjoy the compounded benefits of IRA accounts and use the saved funds for their education and life expenses later in life. In a Custodial IRA account, all assets are managed by the custodian until the child reaches age 18 (or 25 in some states).
3. Vanguard Total World Stock Index Fund (NYSEARCA:VT)
Despite the volatility, wars, and geopolitical tensions, the global economy is destined to grow as the population grows and more people come out of poverty. The Vanguard Total World Stock ETF gives exposure to both US and foreign stocks. The fund tracks the performance of the FTSE Global All Cap Index, which covers both well-established and still-developing markets.
Among the top holdings of the ETF are Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
Amazon.com, Inc. (NASDAQ:AMZN) was owned by 278 hedge funds tracked by Insider Monkey. The biggest hedge fund stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) was Natixis Global Asset Management’s Harris Associates which owns a $2 billion stake in the company.
2. Fidelity Blue Chip Growth (MUTF:FBGRX)
Having exposure to top blue chip stocks in the US is one of the best long-term investments since these blue chip stocks are stable and have long-term growth catalysts. Fidelity Blue Chip Growth invests in top blue chip companies in the US. Some of the top holdings of the fund include NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT).
NVIDIA Corporation (NASDAQ:NVDA) shares have been on a tear this year, gaining about 226% year to date through October 12. As of the end of the second quarter of 2023, 175 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in NVIDIA Corporation (NASDAQ:NVDA). The biggest stakeholder of NVIDIA Corporation (NASDAQ:NVDA) was Rajiv Jain’s GQG Partners which had a stake worth about $6 billion in the company.
1. Fidelity ZERO Total Market Index (MUTF:FZROX)
Fidelity ZERO Total Market Index (MUTF:FZROX) invests at least 80% of its assets in common stocks included in the Fidelity U.S. Total Investable Market Index. The fund gives exposure to small-, mid-, and large-cap stocks. Some top holdings of the fund include Apple Inc. (NASDAQ:AAPL), Exxon Mobil Corporation (NYSE:XOM) and Meta Platforms, Inc. (NASDAQ:META).
Exxon Mobil Corporation (NYSE:XOM) is one of the top dividend-paying energy stocks. Exxon Mobil Corporation (NYSE:XOM) has upped its dividend consistently for about 40 years now. As of the end of the second quarter of 2023, 71 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Exxon Mobil Corporation (NYSE:XOM). The biggest stakeholder of Exxon Mobil Corporation (NYSE:XOM) was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $1.4 billion stake in the company.
You can also take a peek at 15 Most Innovative Companies in Canada and 15 Best Casino Stocks To Buy Heading Into 2024.
