Money & Investing · ETF Rankings
Officially ranked —
Best ETFs
for Beginners
#1 to #10.
Ranked by returns, fees, stability,
and beginner-friendliness. My honest picks.
lazydadlife.com
Best ETFs for Beginners — Officially Ranked #1 to #10
There are thousands of ETFs available. Most beginners don’t need more than 3. But knowing which ones rank highest — and why — helps you build a portfolio with intention rather than guesswork.
Here’s my ranked list of the best ETFs for beginners, scored on four criteria: 10-year returns, expense ratio, volatility, and how easy they are for a new investor to understand and hold through market swings.
How I Ranked These ETFs
Ranking Criteria
📈
Returns
10-year average annual return. Higher is better, adjusted for risk.
💰
Expense Ratio
Annual fee. Lower = more of your money stays invested.
🛡️
Stability
Max drawdown and volatility. Can you hold it through a crash?
🎯
Beginner Score
How easy to understand, buy, and hold without overthinking.
The Full Ranking — #1 to #10
Best ETFs Ranked — Quick Reference
1
VOO
Vanguard S&P 500
0.03% · 500 companies · +15.2%/yr
BEST OVERALL
2
VTI
Vanguard Total Market
0.03% · 4,000+ stocks · +14.8%/yr
MOST DIVERSE
3
QQQM
Invesco Nasdaq-100
0.15% · 100 tech stocks · +21.6%/yr
BEST GROWTH
4
SCHD
Schwab Dividend ETF
0.06% · ~3.5% yield · 10yr+ raises
BEST DIVIDEND
5
JEPI
JPMorgan Premium Income
0.35% · ~8% yield · monthly income
BEST INCOME
6
JEPQ
JPMorgan Nasdaq Income
0.35% · ~10% yield · tech + income
TECH INCOME
7
SOXX
iShares Semiconductor
0.35% · NVIDIA+AMD+Broadcom · AI play
BEST AI BET
8
VNQ
Vanguard Real Estate
0.13% · ~4% yield · US REITs
REAL ESTATE
9
GLD
SPDR Gold Shares
0.40% · physical gold · safe haven
SAFE HAVEN
10
TLT
iShares 20+ Year Treasury
0.15% · ~4.5% yield · bond hedge
BOND HEDGE
#1 VOO — Why It’s the Best ETF for Most Beginners
1
VOO — Vanguard S&P 500 ETF
Best Overall · Score: 97/100
Warren Buffett’s recommended ETF for most investors. Tracks the 500 largest US companies. Cheapest fee possible. 15% annual returns over 10 years. The starting point for almost every serious investor.
#2 VTI vs #1 VOO — Why VTI Is #2 and Not #1
2
VTI — Vanguard Total Market ETF
Most Diversified · Score: 95/100
VTI holds 4,000+ stocks vs VOO’s 500. But historically they perform almost identically — within 0.5% per year. VOO gets #1 because it’s slightly simpler and has marginally better recent performance. If you prefer VTI, that’s equally valid.
💡 VOO vs VTI: The debate doesn’t matter. Pick one. They’ll end up in nearly the same place.
#3 QQQM — The Controversial Bronze Medal
3
QQQM — Invesco Nasdaq-100 ETF
Best Growth · Score: 82/100
✅ Why it’s #3
Best 10-year return of any ETF on this list. AI and tech exposure. Lower fee than QQQ (0.15% vs 0.20%).
⚠️ Why not #1
-83% max drawdown. Too concentrated for a beginner’s only ETF. Best as an add-on to VOO/VTI.
10-Year Returns — Visualized
10-Year Average Annual Return Comparison
$10K → $58,900 over 10 years 🏆
⚠️ Past returns don’t guarantee future results. QQQM’s higher return came with -83% max drawdown vs VOO’s -34%. Higher return always means higher risk.
Which ETFs Should YOU Own?
By Investor Type
🌱
Complete Beginner
Just starting. Keep it simple.
VOO 100%
→ Set up auto-invest. Done.
📈
Growth-Focused (20s–30s)
Long time horizon. Can handle volatility.
VOO 60%
QQQM 40%
← My kids’ portfolio
💰
Income Seeker
Want monthly cash flow.
🌎
Set It and Forget It
Maximum diversification. Never think about it again.
VTI 100%
→ 4,000+ stocks. Done.
For more on how ETFs are regulated and what protections investors have, the SEC’s investor education resources are the most authoritative source available.
The honest ranking
“#1 VOO for most people. Add QQQM if you want growth. Add SCHD or JEPI if you want income. Everything else is optional.”
#1 VOO — best overall
#2 VTI — most diversified
#3 QQQM — best growth
#4 SCHD — best dividend
→ Full ETF comparison: VOO vs QQQ vs VTI
→ Monthly income ETFs: Top 5 Monthly Dividend ETFs
→ How I invest for my kids: My Kids’ Portfolio