The Cheapest ETFs for Building a Core Portfolio

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The analysis focuses on building a low-cost core portfolio for long-term wealth, emphasizing the benefits of ETFs for cost efficiency and transparency. A diversified portfolio can be constructed with 3-4 ETFs, with lower fees significantly boosting long-term returns. The core components suggested are broad equities, cash, and gold. For equity exposure, the S&P 500 ETFs such as SPYM, VOO, IVV, and SPY are highlighted, with SPYM noted for its competitive fees. The Nasdaq-100 ETFs, including QNDX, IQQ, QQQM, and QQQ, are presented as options for exposure to AI and innovation leaders. The video notes that the Nasdaq-100 index has historically outperformed the S&P 500. For cash and gold diversification, low-cost ETFs like GLDM and IAUm are recommended for gold exposure, while SGOV and VBIL are suggested for low-risk, cash-like income, noting their short-duration Treasury bill focus and low expense ratios. The analysis suggests that for younger investors, a higher allocation (80-90%) to equities is suitable, while for those approaching retirement, a gradual reduction in equity exposure is advised. The low correlation of gold with stocks and its role in diversification are emphasized. The performance comparison chart illustrates that Nasdaq-100 ETFs have generally outperformed S&P 500 ETFs over the long term, making them a popular choice for investors seeking exposure to high-growth sectors.

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