Want $1 million in retirement? 9 ETFs to Buy Now and Hold for Decades.

If you want to amass a million dollars (or more!) by retirement, the stock market may be your best long-term investment approach. However, there are many ways to invest in the stock market. For example, you can be very successful by simply investing large amounts in a simple, low-fee index fund, like the one that tracks S&P500. The S&P 500 has averaged annual returns close to 10% (ignoring inflation) over long periods of time.

To aim for better returns than this, you can add many carefully selected individual stocks to your portfolio. You may also want to consider sector-specific exchange-traded funds (ETFs) for sectors you are bullish on.

What are sector ETFs?

The business world can be divided into 11 sectors (groups of stocks with multiple commonalities, usually because they belong to similar industries). Some sectors will perform better than others over a given period. When choosing an ETF, consider which sectors seem most promising to you. Once you have a few in mind, look for ETFs with low fees and good track records that specialize in those sectors.

An ETF is a lot like a mutual fund, filled with a variety of securities and invested by many shareholders. But it trades like a stock, not a fund, so you can buy a few or more shares whenever the stock market is open through your regular brokerage account.

Here are nine sector ETFs to know and consider. Any of them could boost your portfolio – although none are guaranteed to do so, of course. You can compare the returns of each with those of a low-fee S&P 500 index fund like Vanguard S&P 500 ETF (FLIGHT -0.13%)which is at the top of the graph below.

Remember, however, that an ETF with an average annual return of 11% over 10 years could average much lower or much higher than that over the coming decade. Past performance is not a sure indicator of future performance. Think more about your expectations for each sector, then take a close look at the ETFs you're interested in, seeing which stocks make up their portfolios and what expense ratios (annual fees) they charge.

Source: Morningstar.com.

Some additional details on these sector ETFs

1. VanEck Semiconductor ETF (SMH 0.59%): Semiconductors are in almost every electronic item you own or will own, so you may want to own some shares of this ETF. She owns around 25 stocks, with more than a quarter of her value tied to Nvidiaperformances.

2. Sector SPDR ETF Selected for Technology (XLK 0.03%): This ETF expands its network, including semiconductors, IT consultants, software, computers, etc. He holds around 64 shares, with the top spots being reserved for Microsoft, Appleand Nvidia.

3. Healthcare Select Sector SPDR ETF (XLV -0.14%): This ETF covers healthcare equipment and supplies, healthcare providers and services, biotechnology and pharmaceutical industries. He owns around 64 stocks, including top performers like Elie Lilly, UnitedHealthAnd Johnson & Johnson.

4. iShares US Home Construction ETF (ITB -0.29%): This ETF is invested in American companies that build homes. She recently held around 46 stocks, the largest being Dr. Horton, LennarAnd NVR.

5. Vanguard Information Technology ETF (VGT 0.16%): This IT-focused ETF recently had 312 stocks, with the largest holdings including Microsoft, Apple, Nvidia, Broadcom, AdobeAnd Selling power.

6. Fidelity Cloud Computing ETF (FCLD -0.55%): This is a fairly young ETF, launching in 2021, so there are no longer-term returns to share in the table above. It has been somewhat volatile, losing 41% of its value in 2022 and gaining 52% in 2023. It may not be for the faint of heart, but if you're bullish on cloud computing, take another look at it close. Its 49 holdings include companies like Super microcomputerSalesforce and MicroStrategy.

7. Vanguard Communications Services ETF (VOX 0.24%): This ETF holds shares of 117 companies focused on, among other things, telephone, data, cellular and wireless communications services. Top titles recently included Metaplatforms, Alphabet, NetflixAnd VerizonCommunications.

8. Vanguard Industries ETF (SCREW -0.42%): High-tech companies are exciting and often successful, but our economy also needs manufacturing. This ETF, which has nearly 400 stocks, features companies such as caterpillar, Union Pacific, General ElectricAnd Honeywell.

9. SPDR ETFs for Selected Financial Sectors (XLF -1.15%): Finally, financial services companies are also essential to keeping our economy afloat. The 72 stocks in this ETF include those of Warren Buffett Berkshire Hathaway, JPMorgan ChaseAnd Visa.

Many ETFs to choose from

These are just 10 of the many sector ETFs available. A little digging online will reveal many more, some of which will also be very promising and offer low fees and attractive credits.

However you save and invest for retirement, don't delay doing it. Also don't forget the benefit of investing in quality funds and/or companies over a very long period of time, ideally adding dollars regularly and consistently over time.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Selena Maranjian holds positions at Adobe, Alphabet, Apple, Berkshire Hathaway, General Electric, Microsoft, Netflix, Nvidia, Salesforce and Verizon Communications. The Motley Fool holds positions in and recommends Adobe, Advanced Micro Devices, Alphabet, Apple, Berkshire Hathaway, JPMorgan Chase, Lennar, Meta Platforms, Microsoft, NVR, Netflix, Nvidia, Salesforce, Union Pacific, Vanguard S&P 500 ETF, and Visa. The Motley Fool recommends Broadcom, Johnson & Johnson, UnitedHealth Group, and Verizon Communications and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.