2 ETFs That Are All You Need for Retirement
To get a fair mix of diversification, balance, and growth in a hand-picked portfolio of stocks, you as an individual investor might need to own shares of 10 to 20 different companies, or more. But you can achieve those same goals by investing in just a few exchange-traded funds (ETFs), as a single fund may include dozens, hundreds, or even thousands of stocks.
However, many ETFs contain many of the same stocks, particularly if they track similar indexes or market segments. But you could be pretty well diversified, and have excellent long-term growth potential, with as few as two ETFs. In fact, these two very different ETFs might be all you need, outside of your employer-sponsored plan, for retirement.
The Vanguard Information Technology ETF (NYSEMKT: VGT) has been one of the best-performing ETFs since it launched in 2004. Over the past 10 years, it has posted an average annual total return of 17.8%, which beats one of its biggest rivals, the similarly tech-focused Invesco QQQ (NASDAQ: QQQ). And since its inception, it has had an average annual total return of 11%. While both the QQQ and Vanguard Information Technology ETFs are top-notch, I give the slight edge to the latter, not only for its superior long-term performance but also because it is more diversified.
Source Fool.com
