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5 Best ETFs for Long-Term Investors

Best ETF, best ETFs, ETF, ETFs

Best ETF, best ETFs, ETF, ETFsAre you looking for the best ETFs? If there is something capable of making the difference regarding investment, that is certainly the time. In fact, it is he who, by sliding it slowly, helps heal the portfolio after the many turmoils related to rotation and volatility.

Time also helps to recover after a loss, and the mechanism which underpins the composition is just based on time: the longer you apply the diversification, and the more you will earn. And these are the facts and are the same investors to prove it.

The best ETFs are just the long-term ones that seem to be designed specifically for young people who have in front of them a whole working life to manage their savings and strengthen the diversify.

So, here are the 5 best ETFs to invest in the long period.

 

iShares Exponential Technologies ETF

Young investors and the latest fashion technology go hand in hand. After all, it was this generation to grow with a personal computer, and today's technological landscape is equally innovative. 3-D printers, nanotechnology, cloud storage are just a few of the latest high-tech sectors.

ETF iShares Exponential Technologies (Ticker: XT) replicates the Morningstar Exponential Technologies Index that measures those technologies that could be able to transform our society. This sector, ranging from robotics to DNA: XT includes, in fact, the world's most advanced technology and is the perfect ETF for portfolios with ample horizons.

 

Guggenheim S&P 500 Pure Growth ETF 

So much available time means more growth opportunities, and there is a whole investment sector devoted to this purpose. Development equities are recognised as those whose growth is considerably above the average when compared to the others in their sector or the market in general.

These equities relate to capital gain and are very appealing to the young investors and their timely availability. The only thing is that, for example, the S&P 500 Growth Index and the S&P 500 Value Index have in many common companies.

The Guggenheim S&P 500 Pure Growth ETF (Ticker: RPG) resolves the problem by eliminating this overlapping. What remains to the investor is the benefit associated with the typical exposure of development equities. This exposure allows a higher gain than non-growth securities.

 

PowerShares FTSE RAFI Emerging Markets ETF 

Emerging markets are a great bet. Developing countries have begun a process of modernisation and industrialisation that will take time to reach maximum expansion, but which in the meantime can offer interesting opportunities for profit. It should not be forgotten, however, that since they are emerging, their course will not be regular, there will be real "sobs" along the path of progress, at least until, with time, a certain stability has been achieved.

Il PowerShares FTSE RAFI Emerging Markets ETF (Ticker: PXH) is the most appealing for four major reasons: book value, cash flow, sales and dividends to build the portfolio. These elements characterise a portfolio of emerging market securities not only more solid but also cheaper.

We say that the PXH eliminates a good slice of "emerging" from the portfolio, making it much more balanced. This ETF gives great help to our young investors precisely because it includes those emerging markets that still have a large growth margin.

 

First Trust Dorsey Wright Focus 5 ETF 

We can have a lot of chances of making money using the many short-term and Intraday strategies available; the problem is that we need to be sure we know what we are doing, even because the volatility of these "games" may not be suitable for all investors.

The Momentum very often bases its operations on rumours, predictions, and launch of new products. Usually, when it comes to securities, there is no great reasoning behind the strategy and may be subject to sudden change of direction. Younger investors with poor knowledge of the markets are the best candidates to try these strategies because, as already stated, the time available before the deadline compensates for losses.

Il First Trust Dorsey Wright Focus 5 ETF (Ticker:  FV) has a unique approach to this type of investment, is considered the one with the greatest potential regarding performance compared to all other ETFs in its group. It selects 5 funds from the First Trust using several selection tools. FV is rebalanced only when one of the ETFs comes out of the selected parameters, so the composition may also vary from week to week. The major advantage for investors is that they will be "traders" without doing any trading activity.

 

iShares US Fixed Income Balanced-Risk ETF

In my opinion, everyone should have a part of the portfolio invested in bonds, even those investing in emerging markets, because bonds play a stability function on the one hand when the stock market is in disarray and, on the other, always remain one of the best instruments to diversify your investment.

The question is that the last 30 years, about, have represented the gold period for bonds and this is unlikely that happen again; this is the reason why, to the young investors, for the bonds I recommend a free approach or a smart-beta strategy. Why a free approach? Because who handles the funds can, in this way, move freely and choose the best bonds of the whole panorama, disengaging from the Treasure.

The iShares US Fixed Income Balanced-Risk (Ticker: FIBR) holds a portfolio of corporate bonds, US Treasury, and mortgage-backed securities selected based on the ratio "historical risk/reward". All in all, FIBR has a good balance between interest rate risk and credit risk in just one ticket. FIBR gives you the opportunity to earn from the bonds without having to suffer many of the negative effects of them.

 

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