Best 3 ETF Portfolio for Long-Term Investing (Simple Investing in 2025)

October 11, 2025

Best 3 ETF Portfolio for Long-Term Investing (Simple Investing in 2025)

Investing doesn’t have to be complicated. The best portfolios aren’t built on hype or complex trading strategies — they’re built on simplicity, consistency, and time-tested principles. This modern 3-ETF portfolio is designed for 2025’s economy: it keeps the classic diversification of the original Boglehead model but upgrades it for today’s inflation, interest rate shifts, and new market opportunities.

The Origin: From the Boglehead Portfolio to Today

In the early 2000s, a group of everyday investors rallied around the philosophy of Jack Bogle, founder of Vanguard. His approach was simple: stop trying to beat the market and instead own it through broad diversification. The original Boglehead 3-Fund Portfolio consisted of:

One U.S. stock fund
One international stock fund
One bond fund

This minimalist approach outperformed most active strategies over time. But in 2025, the world has changed — inflation persists, interest rates fluctuate, and investors crave more flexibility and income. The principles remain: diversify, stay consistent, and keep costs low. But now, it’s time for an upgrade — a “Boglehead 3.0” built for the modern market.

Understanding ETFs

An Exchange Traded Fund (ETF) is a basket of assets — like stocks or bonds — that you can buy and sell on the stock market. It offers instant diversification, low costs, and high liquidity. Think of it as a playlist of investments that automatically spreads your money across hundreds or thousands of holdings, minimizing risk and maximizing simplicity.

The Three Rules of a Modern ETF Portfolio

1. One ETF per category

Keep it simple: one fund for U.S. growth, one for income, and one for aggressive growth potential. Avoid duplication or chasing trends — clarity beats complexity.

2. Set a clear goal

Define your purpose. Whether it’s early retirement, passive income, or long-term wealth building, knowing your “why” helps you stay consistent through market ups and downs.

3. Stay consistent

Invest small amounts regularly. A $10 daily investment, consistently reinvested, can grow into a seven-figure portfolio over decades. The key is time in the market, not timing the market.

Common Mistakes to Avoid

Chasing hype: Ignore trending stocks and stick to your plan.
Overchecking your portfolio: Constantly watching prices only fuels anxiety.
Switching funds too often: Great investing is about patience, not novelty.

The 3 ETFs That Power This Portfolio

1. SPLG – The Foundation (Growth + Stability)

ETF: SPDR Portfolio S&P 500 ETF (SPLG)
Focus: Broad U.S. market exposure
Dividend Yield: 1.28%
Average Annual Return: 10.71%
Dividend Growth (CAGR): 7.29%

SPLG tracks the S&P 500 — America’s largest companies — offering instant diversification and reliable returns. It has paid dividends for 17 straight years and consistently increased payouts. For long-term investors, this ETF is the rock-solid foundation of a portfolio.

Example: Investing $10 per day ($300/month) in SPLG for 30 years can grow to approximately $777,669, assuming reinvested dividends and steady compounding.

2. FDTS – The Income Engine (Dividend Growth)

ETF: First Trust Dividend Strength ETF (FDTS)
Focus: Dividend income and stability
Dividend Yield: 1.99%
Average Annual Return: 6.78%
Dividend Growth (CAGR): 13.42%

FDTS replaces traditional bonds with something better: growing income and appreciation. It invests in high-quality companies with strong fundamentals and consistent dividend growth. Over time, this ETF can deliver both passive income and solid capital gains.

Example: A $10 daily investment for 30 years can reach $1,189,099, driven by reinvested dividends and long-term compounding.

3. XLK – The Growth Accelerator (Tech Exposure)

ETF: Technology Select Sector SPDR Fund (XLK)
Focus: High-growth U.S. technology sector
Dividend Yield: 0.67%
Average Annual Return: 18.27%
Dividend Growth (CAGR): 7.74%

XLK offers access to tech giants like Apple, Microsoft, and Nvidia — the driving forces behind modern innovation. Though more volatile, tech has delivered unmatched long-term growth. This ETF balances income with explosive capital appreciation potential.

Example: Investing $10 per day in XLK for 30 years can grow to roughly $3,093,876, assuming steady reinvestment and long-term holding.

Optional Alternatives

Foundation Alternatives: SPY (S&P 500, higher liquidity)
Income Alternatives: SCHD (higher dividend yield and consistency)
Growth Alternatives: SOXX (semiconductor-focused growth ETF)

Portfolio Performance Snapshot

Assuming equal allocation across SPLG, FDTS, and XLK:

Average Dividend Yield: 1.31%
Dividend Growth Rate: 9.46%
Average Annual Return: 11.92%

This balanced trio offers steady returns, consistent income, and strong growth — all while remaining incredibly simple to manage.

Adjusting for Your Goals

For faster growth: Increase allocation to XLK or SOXX.
For higher income: Lean more on FDTS or SCHD.
For maximum stability: Allocate more to SPLG or SPY.

Final Thoughts

The best investment strategies are often the simplest. This 3-ETF portfolio keeps your plan clear, your costs low, and your path consistent. With just three funds — SPLG, FDTS, and XLK — you can build a diversified, high-performing portfolio designed to thrive in the 2025 market and beyond. Stay consistent, reinvest your dividends, and let time do the heavy lifting — your million-dollar future starts with just $10 a day.