What's Inside

I've been investing in ETFs for over a decade, and I've tried dozens. After all that trial and error, these five are the ones I keep coming back to. Whether you're building a nest egg or just starting, these picks cover the essentials — low fees, broad diversification, and solid long-term returns. Let's break them down.

#1 VTI – Total US Stock Market

Ticker: VTI | Expense Ratio: 0.03% | Assets: $1.2T

VTI is the foundation of my portfolio. It holds over 3,500 US stocks — from Apple to small-cap companies. Whenever someone asks me What are the top 5 ETFs to buy?, VTI is my first answer. Why? Because it captures the entire US market in one fund. You don't need to guess which sector will outperform.

What I love: The fee is almost zero. Over 30 years, a 0.03% expense ratio saves you thousands compared to active funds.

One thing nobody tells you: While VTI is great for accumulation, it's not the best for income. The dividend yield is around 1.5%, so if you're living off dividends, look elsewhere.

#2 VXUS – Total International Stock

Ticker: VXUS | Expense Ratio: 0.07% | Assets: $300B

Many investors ignore international stocks because US markets have crushed them recently. That's a mistake. I personally keep 20% of my equity in VXUS. It covers developed and emerging markets — think Nestlé, Toyota, and Tencent.

Here's a non-consensus take: International diversification actually reduces portfolio volatility more than adding bonds. When the US dollar weakens, foreign stocks often surge. VXUS gives you that hedge.

I'll be honest — VXUS has underperformed VTI in the last decade. But if you believe in mean reversion, now might be the time to add. I buy a little every month regardless of performance.

#3 BND – Total Bond Market

Ticker: BND | Expense Ratio: 0.03% | Assets: $250B

Bonds are boring, but they save you when stocks crash. I hold BND as my ballast. It holds over 10,000 investment-grade bonds with an average duration of 6 years.

Why BND over BNDX (international bonds)? I tried both. BNDX has currency risk that adds volatility and doesn't always correlate negatively with equities. Stick with BND for simplicity.

MetricBNDBNDX
Yield (30-day)4.5%3.2%
Duration6.0 yrs7.5 yrs
Currency HedgedNoYes (but still volatile)

Note: BND's price fell in 2022 when rates rose — that's normal. If you're investing for the long run, keep buying. I added more during the lows.

#4 QQQ – Tech-Heavy Nasdaq

Ticker: QQQ | Expense Ratio: 0.20% | Assets: $150B

QQQ tracks the Nasdaq-100, dominated by Apple, Microsoft, and Amazon. This is my aggressive growth pick. I allocate no more than 15% of my portfolio here because it's volatile.

My experience: In 2022, QQQ dropped over 30%. I held on and kept DCA'ing. By 2023, it recovered nicely. But if you can't stomach 40% drawdowns, skip this.

Watch out: QQQ has a higher expense ratio (0.20%) than VTI. Also, it's top-heavy — the top 5 holdings make up almost 50%. That's concentration risk.

#5 VIG – Dividend Growth

Ticker: VIG | Expense Ratio: 0.06% | Assets: $60B

I used to chase high dividend yields (like VYM or SDY), but I learned the hard way: high yield often means distressed companies. VIG picks stocks that grow dividends consistently — think Microsoft, Johnson & Johnson, Visa.

The yield is modest (around 1.8%), but the growth is powerful. Over 10 years, VIG's total return beat most high-yield funds with less risk.

One mistake I see beginners make: They go for REIT ETFs or high-yield junk bonds thinking they're getting income. Those can cut dividends in a recession. VIG's dividend growers rarely cut.

Frequently Asked Questions

Can I just buy the top 5 ETFs and ignore my portfolio?
Sort of. If you buy VTI, VXUS, BND, QQQ, and VIG, you have a solid core. But you still need to rebalance once a year. For example, if QQQ outperforms, you might become overweight tech. I rebalance each January by selling winners and buying laggards.
Should I buy these ETFs in a taxable account or IRA?
Put BND and VIG in a tax-advantaged account (IRA) because their dividends are taxed as ordinary income. VTI and VXUS are tax-efficient — I hold those in my taxable brokerage. QQQ also has decent tax efficiency because most gains come from price appreciation.
What's the best way to buy these — lump sum or dollar-cost average?
Statistically, lump sum beats DCA about 70% of the time. But if you're nervous, DCA over 6 months. I do lump sum with my annual bonus and DCA with monthly paychecks. It's a psychological trick that works.
Are these ETFs safe for retirement?
VTI, VXUS, and BND are excellent for retirement. QQQ may be too volatile for retirees — consider replacing with VIG or an S&P 500 ETF like VOO. For a retiree, I'd do 40% VTI, 20% VXUS, 30% BND, 10% VIG.
Why didn't you include a commodity or real estate ETF?
I used to own REITs (VNQ) and gold (GLD). They added complexity without much benefit during the last crash. REITs fell harder than stocks in 2020, and gold was flat. For most people, sticking to stocks and bonds is enough. If you insist, keep it under 5%.

*All data as of the latest available. Past performance does not guarantee future results. This is not financial advice — just my personal experience.