In this article, we discuss 5 ETFs to buy and hold for the next 10 years. If you want our detailed analysis of these exchange traded funds, go directly to 10 ETFs to Buy and Hold for the Next 10 Years.
5. Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS)
Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS) tracks the performance of the FTSE Global All Cap ex US Index, which measures the investment returns of stocks issued by companies located outside the United States. The passively managed index allows exposure to investors across developed and emerging non-U.S. equity markets.
Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS)’s total net assets as of January 31 amounted to roughly $403 billion, with the 7,717 holdings in its portfolio allocated across securities from emerging markets, Europe, Pacific, the Middle East, and North America.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the biggest underlying security in Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS)’s portfolio. The company manufactures and sells integrated circuits and semiconductors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) on March 10 reported that its February revenue increased 37.9% year-over-year to NT$146.93 billion. On a year-to-date basis, revenue for the company grew 36.8% to NT$319.11 billion. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is committed to cooperating with new control rules, after Taiwan’s government said that it would join international sanctions on Russia following the invasion of Ukraine.
Among the hedge funds monitored by Insider Monkey in Q4, 72 funds were bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), up from 67 funds in the preceding quarter. The total stakes held in the fourth quarter amounted to roughly $11 billion. Fisher Asset Management held the biggest position in the company, holding close to 26 million shares worth $3.12 billion.
Here is what Saturna Capital Amana Funds has to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2021 investor letter:
“Concerning the stock market, we avoid short-term predictions. But what of the next decade? A theme since the start of the pandemic has been getting bigger. On one hand, semiconductors are foundational to the global economy and Taiwan Semiconductor dominates, but Taiwan’s geopolitical vulnerabilities raise risks.”
4. Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG)
Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG) is an exchange traded fund that tracks the Russell 1000 Growth Index, a widely diversified market index consisting primarily of growth stocks of large U.S. companies. The ETF’s 1-year annual returns came in at 27.50% as of December 31, whereas the benchmark returns were 27.60%.
Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG)’s portfolio is dominated by technology, industrials, healthcare, and consumer discretionary stocks. With total assets of $11 billion and the top ten holdings comprising 50.3% of the total investments, Jeff Bezos’ Amazon.com, Inc. (NASDAQ:AMZN) is a prominent underlying security of the exchange traded fund.
Amazon.com, Inc. (NASDAQ:AMZN) traded higher on March 10 after the announcement by the company of a 20-for-1 stock split and a $10 billion buyback authorization. There is also some discussion that Amazon.com, Inc. (NASDAQ:AMZN) split could set it up for inclusion in the Dow Jones Industrial Average.
Amazon.com, Inc. (NASDAQ:AMZN) is perhaps the most popular growth stock in the hedge fund universe. According to the Q4 database of Insider Monkey, 279 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), up from 242 funds in the prior quarter. Eagle Capital Management held a significant stake in Amazon.com, Inc. (NASDAQ:AMZN) in the fourth quarter, with 677,828 shares worth $2.26 billion.
Here is what Polen Focus Growth has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:
“Amazon has lagged over the past year and a half. The company now must surpass the substantial revenue windfall it achieved in 2020 while also managing supply chain disruptions, wage inflation, and investments to further distance itself from its competition and serve heightened demand. We feel these headwinds are short-term and transitory. Amazon’s first-party ecommerce business is a low (actually negative) margin business, and these short-term investments and inefficiencies are pushing it further into the red. However, the now large, faster-growing, higher-margin businesses like Amazon Prime, AWS, and advertising should allow margins to move much higher over time.
Our view of long-term growth and margin expansion potential for Amazon remains unchanged, and the valuation has only become more attractive. According to our research, if our expectations for free cash flow growth over the next five years materialize, then Amazon has the potential to deliver among the highest returns across our Focus Growth portfolio. It is now our second-largest position, just behind Alphabet.”
3. Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI)
Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI) is a passively managed exchange traded fund that employs an index-sampling strategy, and seeks to track the performance of the CRSP US Total Market Index. As of December 31, Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI)’s average annual 1-year returns were similar to its benchmark, coming in at 25.72%.
Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI)’s portfolio holds a diversified basket of 4,136 stocks, with total net assets amounting to $1.3 trillion as of January 31. NVIDIA Corporation (NASDAQ:NVDA), an American semiconductor and chip maker, is a notable underlying security in the ETF’s portfolio.
NVIDIA Corporation (NASDAQ:NVDA) is extremely popular among institutional investors. The fourth quarter database of Insider Monkey shows that 110 hedge funds held long positions in NVIDIA Corporation (NASDAQ:NVDA), up from 83 funds in the quarter earlier. Millennium Management owned a prominent position in NVIDIA Corporation (NASDAQ:NVDA), with 3.8 million shares worth $1.14 billion.
Here is what Saturna Capital Amana Funds has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2021 investor letter:
“Concerning the stock market, we avoid short-term predictions. But what of the next decade? A theme since the start of the pandemic has been getting bigger. Nvidia carved out a strong business, but we do not view its position as unassailable given evolving markets and capable competitors.”
2. SPDR S&P MIDCAP 400 ETF Trust (NYSE:MDY)
SPDR S&P MIDCAP 400 ETF Trust (NYSE:MDY) seeks to track the price and yield performance of the S&P MidCap 400 Index, and the benchmark measures the performance of mid-sized companies. The exchange traded fund has close to $19.4 billion in assets under management as of March 10.
The biggest holding in SPDR S&P MIDCAP 400 ETF Trust (NYSE:MDY)’s portfolio is Camden Property Trust (NYSE:CPT), a Texas-based real estate company primarily investing in the acquisition and construction of multifamily apartment communities.
On February 3, Camden Property Trust (NYSE:CPT) declared a $0.94 per share quarterly dividend. The dividend is payable on April 18, for shareholders of record on March 31. As of December 31, 2021, Camden Property Trust (NYSE:CPT) had approximately $1.5 billion of liquidity comprising approximately $613.4 million in cash and cash equivalents, and no amounts outstanding on its $900 million unsecured credit facility. The company’s revenue of $305.36 million beat market consensus by $1.01 million, up 16.8% year-over-year.
Of the 924 hedge funds tracked by Insider Monkey in Q4, 26 funds were long Camden Property Trust (NYSE:CPT), up from 23 funds in the previous quarter. Waterfront Capital Partners is one of the leading shareholders of the company, with 375,295 shares worth $67 million.
1. Vanguard Real Estate Index Fund ETF Shares (NYSE:VNQ)
Vanguard Real Estate Index Fund ETF Shares (NYSE:VNQ) invests primarily in real estate investment trusts, closely tracking the returns of the MSCI US Investable Market Real Estate 25/50 Index. The exchange traded fund holds 168 securities in its portfolio, with total net assets amounting to $84.7 billion as of January 31, 2022.
One of the biggest underlying equities in Vanguard Real Estate Index Fund ETF Shares (NYSE:VNQ)’s portfolio is Prologis, Inc. (NYSE:PLD), a global leader in logistics real estate.
Elite hedge funds are buying Prologis, Inc. (NYSE:PLD) stock. At the end of December 2021, 37 funds reported owning stakes in Prologis, Inc. (NYSE:PLD), up from 32 funds in the preceding quarter. The total stakes held in the fourth quarter amounted to $544.3 million. Jeffrey Furber’s AEW Capital Management is the largest shareholder of Prologis, Inc. (NYSE:PLD), with 2.1 million shares worth over $358 million.
Here is what Third Avenue Management has to say about Prologis, Inc. (NYSE:PLD) in its Q1 2021 investor letter:
“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
You can also take a look at 10 Semiconductor Stocks to Buy Under $50 and 10 Dividend Stocks with Over 10% Yield.
