20 Years to Retirement? These 3 ETFs Could Make You Rich

Investing in exchange-traded funds (ETFs) can help with portfolio diversification. It is also a low-cost and convenient investment option since you do not need to research individual stocks or keep track of their performance. ETFs invest in a basket of stocks and have a low expense ratio. 

Some ETFs also pay dividends, generating passive income for you. While there are hundreds of ETFs to choose from, not all are the same. If you’re 20 years into retirement and considering ETFs, look at high-quality options that can meet your investing goals. Here are three ETFs that can make you rich as you approach retirement. 

Invesco QQQ Trust

The first ETF is the Invesco QQQ Trust (NYSEARCA:QQQ), which is the second-most traded ETF in the U.S. based on the average daily volume. The fund has over 25 years of history, and it tracks the Nasdaq 100 index. This means it invests in the 100 largest non-financial companies listed on the Nasdaq and gives you access to the best blue-chip stocks. 

The fund is rebalanced quarterly, ensuring only the top 100 companies remain in it. QQQ has an expense ratio of 0.18%, which means you pay $18 for an investment of $10,000. It has $395 billion in assets under management, and it has the highest allocation to the technology sector (60%). This is the reason behind its exceptional performance in 2025. 

Besides tech, it allocates 20% to consumer discretionary and 5% towards healthcare. It shouldn’t come as a surprise that its top 10 holdings include the Magnificent Seven, with the highest allocation to Nvidia (8.3%), followed by Apple Inc., Microsoft, Meta Platforms, Tesla, and Alphabet. The top 10 stocks constitute 46% of the portfolio. The holdings are doing all the heavy lifting for QQQ.

Its performance is equally impressive. The fund generated a cumulative 1-year return of 19.47%, a 3-year return of 114.72%, and a 5-year return of 103%. QQQ’s holdings are the reason the fund is doing so well. It is up 22% in the past year and exchanging hands for $608. 

State Street SPDR S&P 500 ETF

An excellent ETF for long-term investors, the SPDR S&P 500 ETF (SPY) was the first ETF listed in the United States in 1993. It tracks the S&P 500 index and offers exposure to the broader stock market. The fund invests in 500 companies from the index and has an expense ratio of 0.094%.

It has a yield of 1.06% and pays quarterly dividends. With SPY, you get to own the biggest stocks across several industries. It has the highest allocation to the technology sector at 32%, followed by financials at 12.47% and communication services at 10.46%. The fund’s top 10 holdings include the tech giants Nvidia, Apple, Microsoft, Amazon, Alphabet, and Tesla. 

While SPY is similar to QQQ, the difference lies in the number of holdings and expense ratio. SPY invests in about 500 stocks, offering ultimate diversification and replicating the S&P 500 closely. While its yield isn’t highly attractive, it has strong capital appreciation potential. 

The fund has a 1-year return of 16.20%, a 3-year return of 20.95%, and a 5-year return of 14.84%. It offers diversification through a single ETF and has performed exceptionally well since inception, proving that it can keep going for another 20 years. The ETF is built to last.

SPY has gained 17.58% in the past year and is exchanging hands for $686.

Vanguard Dividend Appreciation Index Fund ETF

The two ETFs covered earlier offer the potential for capital appreciation, while the Vanguard Dividend Appreciation Index Fund ETF (NYSEARCA:VIG) offers the potential for steady income. The fund tracks the performance of the S&P U.S. Dividend Growers Index and invests in large-cap stocks with a history of growing dividends year after year. This ensures you own stocks that are high-quality, have strong fundamentals and have leadership that can survive market turmoil. 

It is a passively managed fund with an expense ratio of 0.04% and a yield of 1.55%. The fund invests in 339 stocks and is similar to the other two ETFs in its allocation. It has the highest allocation to the technology sector (25.90%), followed by financials (21.50%) and healthcare (16.30%). 

The top 10 holdings include dividend payers like Exxon Mobil, Eli Lilly, Walmart, Visa, and Mastercard. The highest allocation is in Broadcom, Apple, and Microsoft, which constitute 14% of the portfolio. It has generated a cumulative 1-year return of 14.03%, a 3-year return of 58.20%, and a 5-year return of 79.26%. With VIG, you’re not only taking home a paycheck each quarter but also making the most of the capital appreciation. 

VIG has gained 12.89% in the past year and is exchanging hands for $227. It is a top- quality ETF that will let you sleep peacefully at night.