Summary of "The Only 5 ETFs I’d Hold for the Next 20 Years (Even Through Crashes)"
Summary of Finance-Specific Content from “The Only 5 ETFs I’d Hold for the Next 20 Years (Even Through Crashes)”
Market Context & Investing Behavior
- Stock Market Growth & Volatility:
- Average growth is approximately 10% annually.
- Recent annual returns:
- 2018: -4%
- 2019: +31%
- 2020: +18% (pandemic year)
- 2021: +28%
- 2022: -20%
- 2023: +24%
- 2024: +23%
- 2025: +16% (projection)
- Many investors tend to buy high (during market peaks) and sell low (during downturns), resulting in losses.
- The emphasized strategy is “Always Be Buying” (ABB) — investing consistently regardless of market direction to capitalize on volatility and dollar-cost averaging.
What is an ETF?
An ETF (Exchange-Traded Fund) is a basket of stocks that provides diversified exposure across many companies and sectors. Benefits include:
- Passive management
- Diversification
- Less need to monitor individual companies
Five ETF Categories to Hold for the Next 20 Years
1. Broad Economy ETFs
These ETFs provide low-risk, diversified exposure to the overall economy.
Examples:
- VT (Vanguard Total World Stock ETF): ~10,000 global stocks, offering global economy exposure.
- VTI (Vanguard Total Stock Market ETF): ~3,500 U.S. stocks, covering small, mid, and large caps.
- SPY (SPDR S&P 500 ETF): Tracks the S&P 500, representing the largest 500 U.S. companies.
- QQQ (Invesco NASDAQ 100 ETF): 100 largest non-financial stocks, mostly tech-heavy and more volatile.
2. Dividend ETFs
Focus on companies that pay and grow dividends, providing steady cash flow and income.
- Dividend investing requires patience (10+ years to build meaningful income).
- Tax considerations: dividends are taxable income; dividend-paying companies may have slower growth.
Examples:
- SCHD (Schwab U.S. Dividend Equity ETF): High dividend U.S. companies with strong dividend growth. (Presenter is personally invested.)
- VMI (Vanguard International High Dividend Yield ETF): High dividend international companies, with higher risk and volatility but potentially higher yields. (Presenter is personally invested.)
- NOBL (ProShares S&P 500 Dividend Aristocrats ETF): Companies in the S&P 500 that have increased dividends for 25+ years.
- VIG (Vanguard Dividend Appreciation ETF): Companies with 10+ years of dividend growth.
3. International ETFs
Diversify outside the U.S. to mitigate inflation, currency, tariff, and political risks.
Examples:
- VXUS (Vanguard Total International Stock ETF): ~8,000 stocks outside the U.S., including developed and emerging markets.
- VEA (Vanguard FTSE Developed Markets ETF): Focuses on developed international markets (excludes emerging markets).
- VWO (Vanguard FTSE Emerging Markets ETF): Exposure to emerging markets such as China, India, Taiwan, and Brazil.
Country-specific ETFs for targeted exposure:
- INDA: Indian market
- MCHI: Chinese market
- EWJ: Japan
- EWG: Germany
4. Protectionary ETFs (Hedge Investments)
Used to hedge against market downturns and economic uncertainty.
- Traditional hedge: physical gold (preferred by presenter) or paper gold ETFs.
- Gold tends to rise during economic uncertainty and inflation concerns but does not produce income or growth.
- Considered insurance/hedge for portfolio risk management rather than a growth investment.
Example:
- GLD (SPDR Gold Shares): Provides exposure to gold price movements.
5. Risk-On (Thematic/Active) ETFs
Higher risk, higher potential reward by investing in specific growth industries or innovations.
- Risks include regulatory changes, policy shifts, or sector-specific downturns.
Examples:
- QQQ: Tech-heavy NASDAQ 100 (also mentioned under broad economy).
- SOXX (iShares Semiconductor ETF): Exposure to the semiconductor industry benefiting from government support and AI growth.
- QTUM (Defiance Quantum ETF): Exposure to quantum computing companies, a speculative long-term bet on emerging technology.
Key Investing Framework & Recommendations
- ABB (Always Be Buying):
- Automate regular investments (weekly, biweekly, monthly) regardless of market conditions.
- Buy more during downturns to capitalize on discounted prices.
- Maintain a long-term horizon (20+ years), especially for dividend and international ETFs.
- Diversify across broad economy, dividend, international, protective, and risk-on ETFs to balance growth, income, and risk.
- Understand that markets will experience crashes and recessions; these are opportunities for disciplined buying to build wealth.
- Patience is essential, particularly for dividend investing, which may take a decade or more to generate meaningful income.
Disclaimers & Disclosures
The presenter is not a financial advisor; this content is educational and not financial advice. Investing carries risks; there are no guarantees of profit. The presenter discloses personal investments in SCHD and VMI ETFs. Viewers are encouraged to conduct their own due diligence.
Mentioned ETFs & Tickers
- Broad Economy: VT, VTI, SPY, QQQ
- Dividend ETFs: SCHD, VMI, NOBL, VIG
- International ETFs: VXUS, VEA, VWO, INDA, MCHI, EWJ, EWG
- Protectionary: GLD
- Risk-On: QQQ, SOXX, QTUM
Presenter / Source
- A YouTube content creator (name not specified), associated with Market Briefs Pro (investment newsletter and masterclass).
- Offers a free investing masterclass and newsletter for further education.
This summary captures the core investing strategies, ETF recommendations, risk management insights, and macroeconomic context presented in the video.
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Finance
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