The Only 3 ETFs I’d Buy If I Had to Start Over in 2025

October 11, 2025

The Only 3 ETFs I’d Buy If I Had to Start Over in 2025

If you had to rebuild your financial future from scratch, you might think investing is complicated. But it doesn’t have to be. With decades of experience in value investing, I can show you a simple approach: focus on just three ETFs that can help you grow wealth steadily and retire comfortably. Here’s how to do it.

Understanding ETFs

What is an ETF?

An ETF, or exchange-traded fund, is a basket of stocks. Buying one ETF gives you a small piece of many companies, offering instant diversification and lower risk compared to investing in individual stocks. ETFs are low-cost, easy to buy, and update in real time.

Why ETFs Matter

ETFs outperform most actively managed mutual funds over time. They are simple, efficient, and backed by decades of data. Even Warren Buffett recommends low-cost S&P 500 ETFs for the majority of investors, highlighting their ability to outperform most professional managers without complex strategies.

The Three ETFs I Recommend

1. VOO – Vanguard S&P 500 ETF

VOO provides exposure to the 500 largest U.S. companies, including Apple, Microsoft, Google, Amazon, and Nvidia. It offers a slice of the U.S. economy with stable dividends and long-term growth potential.

Expense ratio: 0.03%
Passively managed to track the S&P 500
Supports dollar-cost averaging for consistent long-term investing

VOO is the foundation of a long-term portfolio, allowing investors to match market performance without paying high fees to financial planners.

2. SCHD – Charles Schwab High Dividend ETF

SCHD focuses on high-quality companies that pay consistent dividends, such as PepsiCo, Cisco, Amgen, and Coca-Cola. It provides stability and income generation for your portfolio.

Dividend yield: ~4%
Expense ratio: 0.06%
Invests in companies with strong cash flow and manageable debt

Dividends offer a steady income stream, especially valuable in tax-deferred accounts like IRAs or 401(k)s, and contribute to long-term compounding when reinvested.

3. QQQ – NASDAQ 100 ETF

QQQ is tech-heavy, including companies like Nvidia, Meta, Amazon, Microsoft, Apple, and Tesla. It offers exposure to high-growth, innovative companies with high returns on capital.

Expense ratio: 0.20%
Focuses on high-growth, non-financial companies
Higher volatility but significant long-term growth potential

QQQ should be used strategically and in smaller portions of your portfolio due to market fluctuations. Dollar-cost averaging helps manage volatility while taking advantage of long-term growth.

Investment Strategy and Allocation

Dollar-Cost Averaging

Invest consistently over time, regardless of market ups and downs. This approach smooths out purchase prices and reduces emotional investing decisions.

Portfolio Allocation Considerations

The allocation among VOO, SCHD, and QQQ depends on your age, risk tolerance, and financial goals. Younger investors might favor more QQQ for growth, while those seeking income might include a higher proportion of SCHD.

Impact of Fees on Long-Term Growth

High fees from actively managed mutual funds can drastically reduce retirement savings. For example, a 1% fee can cut millions off your portfolio over decades compared to low-cost ETFs. Keeping expenses minimal is critical to maximizing long-term wealth.

Enhancing Returns with Options

Investors can generate additional income through strategies like covered calls and cash-secured puts. These strategies allow you to earn 1-4% extra annually on your holdings, compounding wealth further over time.

Final Thoughts

ETFs are a simple, cost-effective foundation for long-term wealth building.
VOO tracks the broad U.S. economy, SCHD provides income and stability, and QQQ offers high-growth potential.
Dollar-cost averaging and disciplined investing are key to long-term success.
Minimizing fees and strategically using options can significantly enhance retirement outcomes.

By combining these three ETFs with a clear plan and consistent investing, you can build a portfolio capable of generating millions over time without unnecessary complexity.