2 No-Brainer ETFs to Build Your Portfolio Around
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From what the evidence shows, If you're getting started with, or if you just want to add some pillars that you can build your portfolio around, in a couple of...
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investment
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July 18, 2025
09:45 AM
The Motley Fool
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From what the evidence shows, If you're getting started with, or if you just want to add some pillars that you can build your portfolio around, in a couple of exchange-traded funds (ETFs) can make the cess easy
Additionally, At the same time, By focusing on dividends and long-term growth, you can ensure you're getting a good mix of assets that can help your portfolio rise in value over the years, while also generating some reliable and recurring income
However, Two ETFs that could be ideal for this purpose are the Invesco QQQ Trust (QQQ -0. 14%) and the Schwab U (fascinating analysis) (which is quite significant)
Dividend Equity ETF (SCHD -0
On the other hand, With these two funds, you can get the best of both worlds: Plenty of dividend income, and tremendous growth potential
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Invesco QQQ Fund The Invesco QQQ Fund is with growth investors as it gives you exposure to the Nasdaq-100 index, which is a collection of the 100 largest non-financial stocks on the exchange
This leads to the conclusion that big benefit of this ETF is that you don't have to worry keeping up with the trends
Furthermore, If you don't know anything quantum computing, artificial intelligence, or any other hot trends in, you don't need to, considering recent developments
The ETF will rebalance on a regular basis, so you'll always have exposure to the top (non-financial) stocks on the exchange, in light of current trends
Nevertheless, It's a good way to ensure you aren't missing out on any big growth opportunities (this bears monitoring)
Nevertheless, However, You'll have exposure not only to giants Nvidia and Microsoft, but to smaller stocks such as DexCom and The Trade Desk, which have market caps of less than $40 billion
You'll miss out on smaller stocks, but that also means you can avoid the risk and volatility that can come with in small- and mid-cap stocks
The QQQ Fund makes a lot of sense as a "buy-and-forget" investment, as its gains can add up significantly over the years, given current economic conditions
Its expense ratio is 0, given the current landscape
While there are lower-fee ETFs out there, Invesco's focus on top growth stocks makes QQQ a compelling option nonetheless, as its strong gains can more than offset those fees
Additionally, After all, this is a fund that has soundly outperformed the S&P 500 over the past several years, considering recent developments
However, Dividend Equity ETF If you're for the long haul, you'll bably also want to collect a good, reliable dividend along the way
This's where the Schwab U
Dividend Equity ETF comes into play, in light of current trends
It yields apximately 4%, which is a far higher payout than what you'll get with the average S&P 500 stock -- 1, in light of current trends
On the other hand, The Schwab ETF also has a much smaller expense ratio at 0. 06%, so fees won't take a big chunk out of your returns or dividend income (an important development)
Nevertheless, By focusing on stocks that offer safe and sustainable dividend payments and factoring in financial ratios, this ETF also ensures that you don't have exposure to high-risk dividend stocks whose payouts may be in imminent danger of being cut, in this volatile climate
However, On the other hand, Some of the notable names in the ETF include Chevron, Depot, and Cisco Systems, giving you a good mix of different sectors and industries (which is quite significant)
No one stock accounts for even 5% of the fund's overall holdings, which means you aren't too dependent on any one company
Furthermore, Not only is this Schwab ETF a good dividend investment, it has also generated strong gains for investors over the past five years, amassing returns of more than 50% during that timeframe -- without even factoring in its dividend payments
Between the Schwab U, given the current landscape
Furthermore, Dividend ETF and the QQQ Fund, you'll have a couple of solid funds that can vide your portfolio with long-term stability, terrific growth spects, and some excellent dividend income
Moreover, David Jagielski has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Chevron, Cisco Systems, Depot, Microsoft, Nvidia, and The Trade Desk
The Motley Fool recommends DexCom and Nasdaq and recommends the ing options: long January 2026 $395 calls on Microsoft, long January 2027 $65 calls on DexCom, short January 2026 $405 calls on Microsoft, and short January 2027 $75 calls on DexCom (fascinating analysis)
The Motley Fool has a disclosure policy.
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