Etf That Are Not Tech for Long-Term Growth

If you're looking for ETFs that are not tech for long-term growth, you'll want to consider the consumer staples sector. The article highlights the Vanguard Consumer Staples ETF (VDC) as a solid option, with a 10-year annualized return of 8.3%.

The consumer staples sector is known for its defensive nature, providing essential goods and services that people need regardless of economic conditions. This stability can be beneficial for long-term investors.

VDC holds a diversified portfolio of 114 stocks, including well-known brands like Procter & Gamble and Coca-Cola. The ETF's expense ratio is a low 0.10%, making it an attractive option for investors.

Discover more: Ishares Ibonds Term Tips Etfs

Non-tech ETFs can provide a safer haven for investors looking to escape the tech storm. They offer a more stable investment option that can balance a portfolio.

Consumer staples ETFs like iShares US Consumer Staples ETF (IYK) tend to perform well despite economic conditions due to their non-cyclical nature. They have a track record of steady growth, with IYK returning investors upwards of 400% in profits since the 2008 recession.

Broaden your view: U.s. Investors Are Increasingly Planning to Invest in Crypto Etfs

Healthcare ETFs like Health Care Select Sector SPDR Fund (XLV) also tend to perform well, yielding continuous growth since the great recession. XLV has been climbing a slow and steady staircase, returning investors 540% since its 2008 bottom.

Non-tech ETFs like VYM and XLV offer diversification and are weighted primarily into defensive areas of the market, allowing investors to gain exposure to a broader market segment without exposure to excess volatility.

If this caught your attention, see: What Are Some Etfs Similar to Money Market Funds

The SPDR Total Stock Market ETF, or SPTM, is a popular choice for investors. It tracks the SSGA Total Stock Market Index, which captures 98% of the investable U.S. equity market.

This ETF has a remarkably low expense ratio of just 0.03%. It holds 2,659 individual stocks, with a weighted average market cap of $171.4 billion.

Tech stocks make up a significant portion of SPTM's portfolio, accounting for 27.9% of the overall portfolio. If you exclude the communication services sector, that number drops to 20.9%.

SPTM has been around since October 4, 2000, and has delivered an impressive annualized return of 5.92% through October 31.

For more insights, see: Ishares Us Preferred Stock Etf Pff

The Vanguard High Dividend Yield ETF (VYM) is a solid choice for investors looking to escape the tech storm. It seeks to track the performance of the FTSE High Dividend Yield Index.

VYM is comprised of over ten different sectors, with most of the weight going into Financials (20%), Healthcare (15%), and Consumer Staples (13%). This diversification provides a broader market exposure without excess volatility.

Exxon Mobile (XOM) and Chevron Corp (CVX) are part of the fund's top four holdings, which could help it gain momentum if energy prices continue to rise. The fund has had its up and downs, but generally speaking, VYM has been able to sustain an upwards trend since the last recession.

Since then, the ETF has returned investors nearly 400% in profits without factoring in dividends. The fund charges a mere 0.06% in expenses, making it a cost-effective option.

VYM's dividend payout is 3%, which can be compounded by growth or taken in as income. This adds an extra layer of return for investors.

A different take: Vanguard High Dividend Yield Etf Vym

The iShares US Consumer Staples ETF (IYK) is a great option for those looking for a non-tech investment, with a 59.48% weight in the Food, Beverage, and Tobacco sector and a 23.74% weight in the Personal Products sector.

Consumer staples tend to act as a safe haven during unstable market conditions due to their non-cyclical nature. This means they have a steady demand and are less affected by economic fluctuations.

The ETF has no exposure to tech stocks, making it an attractive option for those looking to diversify their portfolio. Its holdings include companies like Procter & Gamble (PG), PepsiCo (PEP), and Coca-Cola (KO).

IYK has been climbing a slow and steady staircase since the 2008 recession, returning investors upwards of 400% in profits. The fund's performance trails slightly behind the stock market's average return, yielding an average of 8.98% since its inception.

The Vanguard High Dividend Yield ETF (VYM) is another non-tech option that's worth considering, with a 20% weight in the Financials sector and a 15% weight in the Healthcare sector. It offers diversification and is weighted primarily into defensive areas of the market.

Explore further: Non Traditional Etfs

VYM has had its ups and downs, but generally speaking, it has been able to sustain an upwards trend since the last recession. Since then, the ETF has returned investors nearly 400% in profits without factoring in dividends.

The Health Care Select Sector SPDR Fund (XLV) is a non-tech ETF that invests in healthcare companies within the S&P 500. It has some exposure to biotech (16%), but its performance has not been severely affected by it.

XLV has yielded continuous growth since the great recession, with the ETF up 540% since its 2008 bottom. Its current Price to Earnings ratio is 16.77 multiples, lower than the sector's 26x average.

The Vanguard Utilities Index Fund ETF (VPU) is another non-tech option that's worth considering, with a 65-company portfolio in the utility sector. Utilities don't have tech exposure, which has helped the fund shelter itself from the recent market volatility.

VPU has maintained a resilient uptrend since the last recession, yielding slow and steady growth of nearly 230% since its 2008 bottom. The top three holdings in the ETF include NEE, DUK, and SO, all solid companies with great performance.

Curious to learn more? Check out: Best Etfs for Growth and Dividends

Diversify for stability, which means spreading your investments across different sectors to reduce risk.

Tech stocks are like roller coasters, with extreme highs and lows.

To build more stability into your portfolio, consider ETFs in less cyclical sectors. Consumer staples, utilities, and healthcare are examples of stable sectors.

These sectors are more like tilt-a-whirls, with less extreme highs and lows.

The iShares US Consumer Staples ETF (IYK) is a great option for those looking to avoid tech stocks, with no exposure to the sector. It's mostly weighted in the Food, Beverage, and Tobacco sector (59.48%) and the Personal Products sector (23.74%).

Consumer staples tend to act as a safe haven during unstable market conditions due to their non-cyclical nature. They have a track record of steady growth, with IYK returning investors upwards of 400% in profits since the 2008 recession.

The Vanguard High Dividend Yield ETF (VYM) is another option for those looking to diversify their portfolio without tech exposure. It's comprised of over ten different sectors, with most of the weight going into Financials (20%), Healthcare (15%), and Consumer Staples (13%).

For more insights, see: Option Income Etfs

VYM offers a 3% dividend payout and has a 0.06% expense ratio, making it a cost-effective option. It's also had a good long run, returning investors nearly 400% in profits since the last recession.

The Health Care Select Sector SPDR Fund (XLV) is a solid choice for those looking to invest in the healthcare sector without tech exposure. It's comprised of 64 stocks in the S&P 500, including UnitedHealth Group, Johnson & Johnson, and Pfizer.

XLV has a 30-day SEC yield of 1.3% and has returned an annual average of 15% over the last five years. It's also had a good long run, returning investors 540% since its 2008 bottom.

Utilities are another sector that can provide a safe haven during unstable market conditions. The Vanguard Utilities Index Fund ETF (VPU) is a great option for those looking to invest in the sector without tech exposure.

VPU has a 2.7% dividend payout and a 0.10% expense ratio, making it a cost-effective option. It's also had a good long run, returning investors nearly 230% since its 2008 bottom.

For your interest: Best Long Term Etfs

The JPMorgan US Quality Factor ETF (JQUA) is a solid choice for those looking to invest in a diverse portfolio. It tracks the JP Morgan US Quality Factor Index, which takes into account the sector weightings of the Russell 1000 and evaluates companies based on profitability, quality of earnings, and solvency.

This ETF has a relatively small number of holdings, with 230 stocks spread across the portfolio. Technology stocks make up just 20% of the portfolio, making it a great option for those looking to limit their tech exposure.

The top ten holdings account for just 18.4% of the portfolio, with Apple in 8th spot and not dominating the top holdings. The ETF charges a reasonable 0.12% annually, making it a cost-effective option for investors.

JQUA has a relatively small net asset base of $36.7 million, but it's still a viable option for those looking to invest in a quality-focused ETF.

For another approach, see: Stocks vs Etfs

Utilities are a sector that tends to perform well despite economic conditions, making them a safe haven for investors. They're a necessity, after all, and people will always need electricity, water, and gas.

The Vanguard Utilities Index Fund ETF (VPU) is a great example of a utilities ETF. It's comprised of 65 companies in the utility sector, with a top three holdings including NEE 14.31%, DUK 6.62%, and SO 6.33%. All solid companies with great performance.

The VPU fund has maintained a resilient uptrend since the last recession, yielding slow and steady growth of nearly 230% since its 2008 bottom. Utilities had a great year in 2022, with the global market growing at a CAGR of 8.2%.

The fund offers a cheap expense ratio of 0.10%, comparably low to similar funds, which charge 0.88% on average. It also offers an attractive dividend payout to shareholders of 2.7%.

For your interest: Hedge Fund Etfs

The Invesco S&P 500 Low Volatility ETF is designed to move less erratically than the broad market, holding 100 of the S&P 500's least volatile tickers for the past 12 months.

It's rebalanced every three months, and its current top holdings include Johnson & Johnson, DTE Energy, and PepsiCo.

On a similar theme: Global X Lithium & Battery Tech Etf

These companies are not particularly prone to surprises, which means the fund only mirrors about 70% of the S&P 500's average daily movement, whether that be up or down.

This fund has consistently trailed the S&P 500 over the past 10 years, averaging a gain of 11.3% per year versus the broad market's typical 13% annual advance.

Recommended read: Global X Robotics and Artificial Intelligence Etf