Top 3 ETFs to buy Handover Fist in 2024, even though all stocks are cheap on my radar

I’m a strong proponent of creating a balanced portfolio of individual stocks, and that continues to be the case. I truly believe that investors can beat the market over time this way, and I own about 40 individual stocks myself.

But I’ve started incorporating index fund investing a little more into my investment strategy than I used to, especially when it comes to saving for retirement. I decided to start adding stocks from three specific ETFs to my portfolio for 2024. Its contents are as follows:

1. Vanguard S&P 500 ETF

I recently pivoted my investment strategy a bit, going from focusing almost exclusively on individual stocks to incorporating some index funds into my portfolio, specifically my retirement account. And the index funds that I add to the most are super low cost. Vanguard S&P 500 ETF (VOO -0.27%).

In other words, this ETF invests money in all 500 companies that make up the famous benchmark index. Granted, past performance is no guarantee of future returns, but given the average annual return of 9.9% since 1965, by the time I retire in about 20 years, It is very likely that the value of the stock you own has increased significantly. Year. And with the lowest expense ratio of 0.03%, you can keep most of your investment profits.

Note that Vanguard’s isn’t the only stable, low-cost product among S&P 500 index funds, but it is the product with the lowest fees that I know of.

2. Schwab US Dividend Stock ETF

Of the three ETFs discussed here, Schwab US Dividend Stock ETF (SCHD -0.25%) It’s the only one I don’t own yet. And as the name suggests, this ETF invests in a portfolio of stocks that pay dividends. Specifically, it tracks the Dow Jones US Dividend 100 Index.Top holdings include: AbbVie (abbreviation 0.14%), amgen (AMGN -0.15%), broadcom (AVGO -0.55%)and home depot (HD -0.23%).

In short, value stocks (like most dividend stocks) have significantly underperformed growth stocks in the recent stock market recovery. However, interest rates could catch up as economic conditions improve and interest rates are widely expected to fall in 2024. Either way, one of my goals is to build a steady stream of reliable dividend income in my retirement accounts, and this His ETF helps me do that. As of this writing, the Schwab U.S. Dividend Stock ETF has a dividend yield of 3.7%.

3. Vanguard Real Estate ETF

Last, but certainly not least, Vanguard Real Estate ETF (VNQ -1.19%). I’m buying this because I already own about a dozen individual real estate investment trusts (REITs) for several reasons.

Firstly, the real estate sector is well-positioned for a great 2024. REITs were hurt by rising interest rates due to higher costs of capital, and many investors took advantage of higher yields from risk-free investments like U.S. Treasuries instead. Interest rates are widely expected to fall in 2024, and REITs could be one of the biggest beneficiaries.

Second, the Vanguard Real Estate ETF is a weighted index fund, so large companies account for a higher percentage of the fund’s assets. Top holdings include some of his most battered REITs, including: american tower (AMT -0.59%), crown castle (CCI -0.79%), Prologis (PLD -1.40%)and some that I don’t own yet, but it seems like a great way to get exposure to some of the big names in the field without having to buy them individually.

There’s nothing wrong with spending money on autopilot.

Admittedly, I’m not giving up on finding attractive individual stocks to own. Individual stocks still make up about three-quarters of my portfolio, and I think there are some interesting opportunities heading into 2024.

However, even if you’re an avid stock picker, there’s nothing wrong with incorporating low-cost ETFs into your portfolio. ETFs can help form the backbone of a solid stock portfolio, putting you in a great position to earn stable returns over the long term, regardless of what individual companies do, and are not well understood. Helps you gain exposure to industries and sectors. Select an individual brand.