Looking for the best ETFs for long-term retirement investing? Whether you’re building a portfolio for your 401(k), IRA, or taxable brokerage account, exchange-traded funds (ETFs) offer low fees, diversification, and long-term growth potential. The key to successful retirement investing is choosing funds that are diversified, cost-efficient, and built to weather market cycles. Below are the top 10 ETFs for long-term retirement investing to help you decide what fits your strategy.
1. Vanguard Total Stock Market ETF (VTI)
If you want one ETF that basically owns the entire U.S. stock market, VTI is hard to beat. It tracks thousands of companies from mega-cap tech giants to small growing businesses, giving you instant diversification. With ultra-low expense ratios and broad exposure, it’s a favorite for long-term retirement portfolios. VTI works well as a core holding, especially for investors who want simple, set-it-and-forget-it growth. Over decades, the total U.S. market has historically trended upward, making this ETF a strong foundation for compounding wealth over time.
2. Vanguard S&P 500 ETF (VOO)
VOO tracks the S&P 500, giving you exposure to 500 of the largest U.S. companies. For retirement investors, this ETF offers stability, scale, and strong historical returns. It’s slightly more concentrated than total market ETFs, focusing on established large-cap firms. Many investors pair VOO with international or bond ETFs for balanced diversification. Thanks to its low fees and consistent performance, VOO is a go-to option for anyone building a long-term retirement strategy centered around American corporate growth.
3. Schwab U.S. Broad Market ETF (SCHB)
SCHB is another excellent total-market ETF, similar to VTI but offered by Charles Schwab. It provides exposure to large-, mid-, and small-cap U.S. stocks in one low-cost package. For retirement investing, cost matters; a small fee difference compounded over 30 years can mean thousands of dollars. SCHB’s ultra-low expense ratio makes it attractive for long-term investors who value simplicity and diversification. It fits perfectly in IRAs or 401(k) rollovers where steady growth and minimal management are priorities.
4. Vanguard Total International Stock ETF (VXUS)
Retirement investing isn’t just about the U.S. market. VXUS gives you exposure to thousands of companies outside the United States, including Europe, Asia, and emerging markets. International diversification can reduce risk and provide growth opportunities when U.S. markets slow down. Adding VXUS to your portfolio helps balance domestic holdings like VTI or VOO. For long-term investors, global exposure ensures your retirement savings benefit from worldwide economic expansion, not just one country.
5. iShares Core MSCI Total International Stock ETF (IXUS)
IXUS is another strong international ETF option for long-term retirement portfolios. It tracks developed and emerging markets outside the U.S., offering broad geographic diversification. For investors who prefer BlackRock’s iShares platform, IXUS is a cost-effective alternative to VXUS. Over decades, different regions outperform at different times, so holding a global ex-U.S. fund can smooth volatility. If your retirement strategy focuses on balanced global growth, IXUS deserves a place alongside your core U.S. equity ETF.
6. Vanguard Total Bond Market ETF (BND)
Stocks drive growth, but bonds add stability, especially as retirement approaches. BND tracks the broad U.S. investment-grade bond market, including government and corporate bonds. It helps reduce portfolio volatility and provides steady income. Younger investors might allocate a smaller portion to BND, while those nearing retirement may increase bond exposure to protect capital. For long-term retirement planning, having a bond ETF like BND balances risk and helps smooth out market swings during downturns.
7. iShares Core U.S. Aggregate Bond ETF (AGG)
AGG serves a similar purpose to BND, offering diversified exposure to U.S. investment-grade bonds. For retirement investors, it provides income and risk reduction in a low-cost, easy-to-hold ETF structure. AGG is particularly useful in tax-advantaged accounts like IRAs, where income distributions are shielded. Including a bond ETF like AGG in your long-term retirement portfolio can improve stability and reduce emotional decision-making during stock market downturns.
8. Vanguard Growth ETF (VUG)
For investors seeking higher growth potential, VUG focuses on large-cap U.S. growth companies, including technology and innovative sectors. While more volatile than broad market ETFs, growth funds can significantly boost long-term returns over decades. Younger retirement investors with longer time horizons often allocate part of their portfolio to growth ETFs like VUG. Just remember: higher reward typically means higher short-term swings, so balance it with broader market and bond holdings.
9. Vanguard Dividend Appreciation ETF (VIG)
VIG targets companies with a strong history of increasing dividends. For retirement investors, dividend growth can provide both income and capital appreciation. These companies are often financially stable and less volatile than pure growth stocks. Over time, reinvested dividends compound dramatically, making VIG attractive for long-term wealth building. As retirement nears, dividend-focused ETFs can also serve as a partial income source while maintaining equity exposure.
10. Schwab U.S. Dividend Equity ETF (SCHD)
SCHD is widely praised for combining dividend income with quality screening. It focuses on high-quality U.S. companies with strong cash flow and consistent dividend payments. For long-term retirement investing, SCHD offers a blend of income, value, and moderate growth. Many investors use it to complement broader index ETFs like VTI or VOO. Its low expense ratio and strong historical performance make it a popular choice for those building a retirement portfolio centered on reliable dividend income.
Building a Retirement ETF Portfolio
The best ETFs for long-term retirement investing usually include a mix of:
- Broad U.S. market exposure (VTI, VOO, SCHB)
- International diversification (VXUS, IXUS)
- Bonds for stability (BND, AGG)
- Growth or dividend tilt (VUG, VIG, SCHD)
A simple three- to five-fund portfolio using these ETFs can provide diversification, low costs, and strong long-term compounding potential. The key isn’t chasing trends; it’s staying consistent, investing regularly, and thinking in decades, not months.