For people just looking to dip their toe into investing, there is perhaps no better way to get started than buying a high-quality exchange-traded fund (ETF). These are essentially funds that trade like individual stocks and are a great way to get instant diversification rather than betting on one single stock.
Investing $1,000 can be a great start, although if you want to build long-term wealth, it is just that -- a start. If you can invest $1,000 a month through a dollar-cost averaging strategy, you can easily build a multimillion-dollar portfolio over the next 30 years, with the vast majority of that coming from stock gains. The key is consistency and time, as compounding will do the rest.
Let's look at five simple ETFs to begin buying today with $1,000 (or any amount, really) that you can hold for a lifetime.
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The Vanguard 500 ETF
The Vanguard 500 ETF (VOO 0.20%), or a similar fund that tracks the S&P 500, should arguably be the foundation of most investors' portfolios. The fund gives you an instant portfolio of 500 of the largest U.S. companies that have become leaders in their respective fields. These are companies that are proven winners that continue to just succeed.
The ETF has been a strong winner over the years, and very few actively managed funds have been able to outperform it over the past decade. The fund has generated an average annual return of 14.8% over the last 10 years and 23% over the past three.
The Vanguard Growth ETF and Invesco QQQ Trust
Growth stocks have led the market higher for much of the past decade, and the Vanguard Growth ETF (VUG 0.26%) and Invesco QQQ Trust (QQQ 0.15%) are two great growth index funds to play this trend. The former is essentially the growth portion of the S&P 500, while the latter tracks the Nasdaq-100 index. Both ETFs are heavily weighted toward megacap tech stocks and artificial intelligence (AI) leaders, and their top-10 holdings are very similar.
The Vanguard Growth ETF has produced a yearly return of 17.5% over the past 10 years and 32.5% over the last three. The Invesco QQQ Trust, meanwhile, has generated an average return of 19.4% over the last decade and a 32.9% average return over the past three years.
The Global X Artificial Intelligence & Technology ETF
For investors looking to invest just in AI stocks, the Global X Artificial Intelligence & Technology ETF (AIQ 0.96%) is a solid option. One of the things I like best about the ETF is that it gives investors exposure to some top international AI companies, which is something many funds lack. Nearly 35% of the portfolio is in international stocks, and Samsung, SK Hynix, Taiwan Semiconductor Manufacturing, and Alibaba are among its top-10 holdings.
With the boom in AI, the ETF has been a greater performer in recent years. The fund managed a 32% return in 2025 and is up an average of 36.4% over the past three years.
Schwab U.S. Dividend Equity ETF
For investors looking for less tech exposure and some dividend income, the Schwab U.S. Dividend Equity ETF (SCHD +0.42%) is a nice option. The fund is not just buying high-yield stocks; it's looking for companies that can maintain and raise their dividends in the future. It tracks the Dow Jones U.S. Dividend 100 Index, which analyzes a company's dividend based on its free cash flow, debt, return on equity (ROE), and 5-year dividend growth rate, and it adds and removes stocks yearly based on its analysis.
Given that the market has been driven by growth stocks over the past 15 years or so, the Schwab U.S. Dividend Equity ETF doesn't have as robust returns as growth ETFs. However, it carries a 3.8% forward yield and has generated a solid 11.5% average annual return over the past decade, which has outperformed the value fund category.
Should you buy shares in Vanguard S&P 500 ETF right now?
Before you buy shares in the Vanguard S&P 500 ETF, consider this:
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 14, 2026
Geoffrey Seiler has positions in Invesco QQQ Trust and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
This article was originally published by The Motley Fool
