3 ETFs to Keep Your Retirement Savings on Track
At the Motley Fool, we believe investing in stocks is the most effective way to predictably generate wealth over the long term, which lets the power of compounding returns do its work. But not everyone has the time or inclination to research individual stocks. So thankfully, one promising alternative is to invest in an exchange-traded fund (ETF), a marketable security that tracks a particular index and trades on a major stock exchange. To that end, we asked three top Motley Fool investors to offer an ETF investors could use to help keep their retirement savings on track, and they chose the Vanguard S&P 500 ETF (NYSEMKT: VOO), the Vanguard REIT ETF (NYSEMKT: VNQ), and the Vanguard Mid-Cap Value ETF (NYSEMKT: VOE).
Put your cash to work in a high-quality ETF. IMAGE SOURCE: GETTY IMAGES
Steve Symington (Vanguard S&P 500 ETF): It's already exceedingly difficult to beat the S&P 500 Index, which is arguably the most widely followed barometer for the broader-market's performance, and has averaged historical annual returns of roughly 10%. In fact, according to a research report from Standard & Poor's on actively managed funds earlier this year, 92.15% of all large-cap, 95.4% of mid-cap, and 93.21% of small-cap managers have lagged their respective benchmarks over the 15-year period ended December 2016.
Source: Fool.com
