• The Vanguard S&P 500 ETF serves as a foundational investment.

• If you’re looking for more growth, the Vanguard Growth ETF and the Invesco QQQ Trust can provide that extra exposure to growth stocks.

• Schwab US Dividend Equity ETFs are also useful for balancing a portfolio with dividend-oriented stocks.

Many investors often think they’ll wait for a major drop in the stock market before they invest. But that’s a risky approach. Research from JP Morgan indicates that over the last 20 years, seven of the ten best market days occurred just two weeks after the worst ones. Missing those rebound days could cut your overall returns significantly.

Although the market might feel at a peak now, some investors are still waiting for a dip. This study suggests that recoveries tend to happen quickly. Even if you can predict a drop, there’s a strong chance you’ll miss the upswing that follows. Essentially, investors would need to call the market twice, which is no small feat.

This highlights the importance of dollar-cost averaging. Regularly investing can take the emotion out of the equation and reduce the need for perfect timing. For example, starting with $1,000 and contributing a set amount monthly could lead to a substantial portfolio over 30 years.

Let’s consider four exchange-traded funds (ETFs) worth buying and holding onto for the long haul.

The Vanguard S&P 500 ETF (ticker: VOO) is a straightforward way to remain invested in the market without having to pick individual stocks. It tracks the S&P 500 index, which comprises 500 large US companies. The holdings are broadly diversified but are heavily weighted in technology stocks, which are performing well.

In terms of performance, ETFs have yielded an annual return of about 14.6% over the past decade. If your portfolio permits only one ETF, this could significantly enhance your wealth over time.

For those more inclined toward rapidly growing companies, the Vanguard Growth ETF (ticker: VUG) is an excellent choice. It zeroes in on large growth stocks and includes a significant portion of tech and consumer companies that show strong revenue growth.

This ETF tracks the CRSP US Large Cap Growth Index or the growth segment of the S&P 500, with over 60% of its holdings based in technology. Its average return over the last decade is an impressive 17.1%. If you’re optimistic about artificial intelligence, this ETF allows for a great way to gain exposure without concentrating solely on that sector.

The Invesco QQQ Trust (NASDAQ: QQQ) takes growth exposure even further, focusing on the NASDAQ-100. This fund is heavily weighted toward technology and innovation, with tech making up more than 60% of the fund, resulting in an average annual revenue gain of 19.4% over the last decade.

Interestingly, while it shares many top holdings with the Vanguard Growth ETF, it doesn’t carry as much concentration in its leading positions. The expense ratio is a bit higher—0.2% more than Vanguard’s—but the fund’s performance justifies it.

While the market is currently all about growth, incorporating value and income components can provide a more balanced portfolio. The Schwab US Dividend Equity ETF (ticker: SCHD) focuses on companies with reliable free cash flow and a strong history of dividend growth. It currently yields nearly 4%, which is appealing whether you choose to reinvest or take the cash.

Over the last decade, SCHD has returned roughly 12.3% annually—a respectable performance compared to the 10.4% return from large value funds during the same period.

It’s worth considering this information before diving into the Vanguard S&P 500 ETF. The analyst team at Motley Fool has identified ten stocks they believe are better buys right now, excluding the Vanguard ETF. These picks could see substantial gains in the coming years.

For perspective, if you had invested $1,000 in Netflix when it was first recommended back in December 2004, it would be worth an astounding $661,694 today. Similarly, a $1,000 investment in Nvidia, recommended in April 2005, would have ballooned to about $1,082,963.

It’s important to note that the average return for the Motley Fool’s Stock Advisor is 1,067%, which notably outperforms the S&P 500’s 190% return. Make sure you check out their latest top ten list when you join.