The Schwab US Dividend ETF (SCHD) is struggling this year. While its net inflow is over $5.47 billion, recent data show that the fund has not had traction among investors.
SCHD ETF now has over $72 billion in assets under management (AUM), making it one of the biggest funds in the market. Its year-to-date gain is just 1.35%, underperforming the broader stock market.
The SCHD fund is not living to expectations as its dividend yield of 3.7% is lower than what short-term government bonds are offering. Therefore, this article looks at some of the best ETFs to buy to sleep well at night (SWAN) instead of the SCHD.
Read more: 3 reasons to avoid the blue-chip SCHD ETF
Vanguard S&P 500 ETF (VOO)
At times, boring assets are some of the best ones to invest in. The VOO ETF is one of the best funds to invest in to sleep well at night in the long term.
This fund tracks the S&P 500 Index, which has been around for decades. It invests in the biggest companies in the United States, including popular names like NVIDIA, Microsoft, Apple, and Google.
This fund has had a strong performance in the past decades as it survived the most significant events that happened in the past decades, including the Cold War, the COVID pandemic, the 911 attacks, and the 2008/9 Global Financial Crisis.
In this period, dips have been proven into good opportunities to buy. For example, it recently plunged after Trump launched his trade war, and within months, it was trading at a record high.
The VOO ETF is a cheap one with an expense ratio of 0.03% and is the main benchmark that investors look at when assessing the performance of the US stock market.
Invesco NASDAQ 100 ETF (QQQM)
Most people are aware of the QQQ ETF, which has over $400 billion in assets. Yet, the QQQM ETF, its smaller sibling, is a better asset to invest in because of its smaller fee. It has an expense ratio of 0.15% compared to QQQ’s 0.20%. That 0.05% can make a difference in the long term.
The QQQM ETF tracks the Nasdaq 100 Index, which is known for tracking technology companies in the US, including popular names like Google and Nvidia.
Investing in a single sector is a risky situation, especially when there is a major downturn, as we experienced in the dot-com bubble.
However, history is on its side as the Nasdaq 100 Index has always bounced back and thrived over the years.
Grayscale Bitcoin Mini Trust ETF (BTC)
We believe that Bitcoin is a good alternative asset to have in a portfolio. Besides, it is the only asset whose price has jumped from zero in 2009 to $112,000 today.
There are many Bitcoin ETFs in the industry, with the iShares Bitcoin Trust (IBIT) being the biggest one with over $86 billion.
However, the smaller Grayscale Bitcoin Mini Trust is the best one to invest in because of its smaller fee. It has an expense ratio of 0.15%, lower than the IBIT’s 0.25%. As such, the fund will likely continue thriving in the long term, with analysts expecting it to continue doing well in the long term.
The other ETFs to invest in for the long term are the Pacer US Cash Cows 100 ETF (COWZ), Grayscale Ethereum Mini Trust (ETH), and VanEck Morningstar Wide Moat ETF (MOAT).
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