In the wake of the global financial crisis, it was often said that buy-and-hold investing was dead. Add to that, critics of the exchange-traded fund industry have often said ETFs would turn investors in a nation of day traders thanks to their intraday liquidity — a feature not offered by mutual funds.
Those assertions have largely proven false.
ETFs have been validated as ways for long-term investors to gain cost-effective exposure to myriad assets — stocks, bonds, even commodities.
Every year, the ETF industry continues to shatter its own asset records. In the first quarter of this year, U.S.-listed exchange-traded funds added a record $132 billion in new assets — toppling the previous record set in the fourth quarter of 2016. Yes, some of that money is coming from traders using ETFs for tactical, short-term trades … but data suggests most of the money is coming in from investors that are looking to stick around.
So, contrary to what others might say, ETFs and “buy and hold” are a match made in heaven. That’s particularly true as ETF providers continue to lower fees. The ETF business is a business like any other, where competitors want to beat each other — but lower fees really do benefit investors, too. Particularly those that hold on for the long-term.
Here’s a trio of ETFs that you can buy and hold forever, so you never have to worry about checking in and seeing how things are going. They’ll be just fine.