The ONLY 4 ETFs You Need to Buy in 2026 (if you want to become a millionaire)

Summary

In this video, the creator shares their top four ETFs for building long-term wealth in the stock market, along with a bonus investment opportunity. The ETFs include VTI (Vanguard Total Stock Market Index Fund), VEA (Vanguard FTSE Developed Markets ETF), and BND (Vanguard Total Bond Market ETF), each serving a specific purpose in a diversified portfolio. Additionally, the video discusses real estate as a wealth-building asset class and introduces private credit through Fundrise as an alternative investment generating impressive returns. The creator emphasizes the importance of low-cost, diversified investing for financial independence.

Takeaways

• 😀 VTI (Vanguard Total Stock Market Index Fund) is a foundational ETF that tracks the entire U.S. stock market, covering large, mid, and small-cap companies.
• 😀 VTI's performance over the past 10 years has averaged a 14% annual return, turning a $10,000 investment into about $37,000 today.
• 😀 International diversification is essential for a balanced portfolio, with VEA (Vanguard FTSE Developed Markets ETF) offering exposure to 3,900 companies outside the U.S.
• 😀 VEA has averaged a 7.9% return over the past decade, and this year, it has outperformed VTI, with returns of 24% compared to VTI's 10%.
• 😀 BND (Vanguard Total Bond Market ETF) provides stability and income in a portfolio, with a dividend yield of 3.77% and an expense ratio of 0.03%.
• 😀 Bonds are less volatile but yield lower returns than stocks. BND has averaged a 1.8% annual return over the last 10 years, with $10,000 growing to around $11,953.
• 😀 It's important to avoid traditional financial advisers who charge a percentage of your portfolio; instead, opt for a flat-fee advisor for better financial alignment.
• 😀 Real estate investment, particularly through leveraging, tax benefits, and appreciation, can be a powerful tool for building wealth.
• 😀 REITs (Real Estate Investment Trusts) like VNQ offer an easier, more liquid way to invest in real estate without the need to directly own property.
• 😀 Private credit, such as investing through the Fundrise Opportunistic Credit Fund, can generate returns between 9-12% annually, offering an alternative asset class that acts like lending money to developers and projects.

Q & A

What are the four ETFs recommended for building wealth in the stock market?

The four ETFs recommended are VTI (Vanguard Total Stock Market Index Fund), VEA (Vanguard FTSE Developed Markets ETF), BND (Vanguard Total Bond Market ETF), and a real estate investment strategy, which includes either direct property ownership or a REIT ETF like VNQ.

Why is VTI considered a strong foundation for a portfolio?

VTI is a strong foundation because it tracks the entire U.S. stock market, providing exposure to over 3,500 companies across large, mid, and small caps. It’s a diversified, low-cost, 'set it and forget it' investment with a long-term average return of 14% per year over the past 10 years.

How does VTI's performance compare to Nvidia's rise?

VTI includes top-performing companies like Nvidia. Even though Nvidia wasn’t a standout 10 years ago, it rose significantly in recent years, and VTI investors benefited from this growth due to the ETF’s broad market exposure.

What is the significance of the 0.03% expense ratio in VTI?

The low expense ratio of 0.03% means that VTI costs very little to own, which is crucial for long-term investors. Keeping expenses low ensures more of the investment returns stay in the investor's portfolio, contributing to better overall performance.

Why is international diversification important in a portfolio?

International diversification helps reduce home country bias and provides exposure to growth opportunities outside the U.S. It ensures investors capture upside from global markets, which may outperform the U.S. stock market at times, as seen with VEA's recent 24% return compared to VTI’s 10%.

What does VEA focus on, and how does it perform?

VEA tracks the FTSE Developed Markets Index, providing exposure to companies in Europe, Canada, Japan, and Australia. Over the past 10 years, it has returned an average of 7.9% annually, with a strong recent performance of over 24% in 2025.

How does VEA’s dividend compare to VTI?

VEA’s dividend yield is 2.6%, which is higher than VTI’s 1.4%. This means that for a $10,000 investment, VEA would generate approximately $260 in dividends annually, compared to $140 for VTI.

What role does BND play in a portfolio, and what are its returns?

BND provides stability and income, especially near retirement. It tracks the Bloomberg Aggregate U.S. Bond Index, offering exposure to over 11,000 bonds. Over the past 10 years, BND’s average return has been 1.8%, but it delivers a higher dividend yield of 3.77%, which is more attractive for income-focused investors.

What are the benefits and downsides of investing in physical real estate compared to a REIT?

The benefits of physical real estate include leverage, tax advantages like depreciation, potential for appreciation, and protection against inflation. However, it is less liquid and requires active management. REITs, on the other hand, offer liquidity but lack direct ownership in physical property.

What is the 'bonus' investment opportunity mentioned, and how does it work?

The bonus investment is in private credit through the Fundrise Opportunistic Credit Fund. This involves lending money to real estate developers in exchange for interest payments, similar to bonds. It targets annual returns of 9-11% and has recently achieved a return of around 12%, but it requires being an accredited investor and involves liquidity constraints.