4 ETFs That Are All You Need for Retirement

[ETF Daily News]( July 11th, 2022 SPONSORED AD [Nevada Desert more Valuable than Wall Street or Silicon Valley?]( It could be true, according to Nevada Governor Steve Sisolak. The state's desert flats contain more lithium than any other geography in the world. And with electric vehicles driving a global boom in demand for lithium-ion batteries, Nevada should be on every investor's radar. [Find Out How to Take Advantage of Nevada's Lithium Bonanza]( [4 ETFs That Are All You Need for Retirement]( When you’re building a nest egg, diversification is essential. You’ve heard the saying: Never put all your eggs in one basket. But it’s surprisingly easy to build a diversified portfolio to fund your retirement without handpicking dozens of investments. An [exchange-traded fund (ETF)]( is a bundle of securities — often hundreds or more — that trades via major exchanges like a regular stock. Because an ETF invests across so many securities, you get automatic diversification. So, building a secure retirement portfolio can be as simple as investing in these four ETFs. 1. Vanguard S&P 500 ETF (VOO) A great backbone for your retirement portfolio is the Vanguard S&P 500 ETF ([VOO]( -0.06%). It tracks the S&P 500 index, a collection of 500 of the largest publicly traded corporations in the U.S., representing about 80% of the domestic stock market. Although the index is down nearly 20% thus far in 2022, historically, it’s delivered average annual returns of about 10% for investors. Thanks to compounding, that translates to serious wealth over time. You really can’t go wrong with any [S&P 500 index fund](. But the Vanguard S&P 500 ETF is a good pick because the fees are minuscule. The expense ratio is 0.03%, which means you’d only pay $3 in fees on a $10,000 investment. 2. iShares Core S&P Small-Cap ETF (IJR) The large-cap stocks in the S&P 500 index are a predictable generator of wealth in the long term, but [small-cap stocks]( have greater growth potential. That’s why the iShares Core S&P Small-Cap ETF ([IJR]( -0.20%) is an excellent addition to your retirement portfolio, particularly if you’re young and have relatively high risk tolerance. The fund’s benchmark index is the S&P Small-Cap 600 Index, which consists of 600 U.S. stocks with a market capitalization of between $850 million and $3.7 billion. Because the index doesn’t include any S&P 500 companies, the fund works well as a diversifier. Plus, it requires companies to have positive [GAAP (generally accepted accounting principles) earnings]( for both the most recent quarter and the past four quarters, which shields investors from small companies with shaky finances. The iShares Core S&P Small-Cap ETF is the largest small-cap ETF, with around $60 billion in assets under management. It also has a dirt-cheap expense ratio of 0.06%. 3. Vanguard Real Estate Index Fund ETF (VNQ) Investing in real estate can provide additional diversification for your nest egg and reduce your portfolio’s volatility. But buying physical property can be a hassle. The Vanguard Real Estate Index Fund ([VNQ]( -0.53%) allows you to become a real estate investor without actually buying property. The fund invests in 171 [real estate investment trusts (REITs)]( which own, operate, and finance commercial properties. REITs are a good addition to a retirement portfolio because they’re a faithful source of dividends. The reason? REITs are legally required to return 90% of their taxable income to shareholders. With about $38 billion in assets under management, the Vanguard Real Estate ETF is by far the largest real estate ETF, with an annual yield of 2.46% and a relatively low… Continue reading at [THE MOTLEY FOOL]( Copyright © 2022 Mesh Publishing | All Rights Reserved [Unsubscribe]( [Privacy Policy]( [Terms & Conditions]( 146 W 29th St, Rm 8E, New York, NY 10001