An ETF to Help Re-focus on Long-Term Growth | ETF Trends

Short-term noise may cause some jitters. Exchange traded fund investors, though, should instead keep in mind that investing for the long-term is what is most important.

“The most important takeaway for investors is to keep focusing on the long term,” Armando Senra, Managing Director, Head of iShares Americas, said in a research note.

“Historically, the political party controlling the White House and the different Congressional configurations have had little bearing on the long-term performance of U.S. stocks. The power of compounding returns means that for the long-term investor, a focus on managing volatility and simply remaining invested may prove more powerful than reactions to a given administration,” he added.

As a way for ETF investors to keep invested for a long-term horizon, one may consider the iShares Core S&P Total U.S. Stock Market ETF (ITOT). The fund seeks to track the investment results of the S&P Total Market Index (TMI), which is comprised of the common equities included in the S&P 500 and the S&P Completion Index.

ITOT YTD Performance

The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. It may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, including shares of money market funds advised by BFA or its affiliates, as well as in securities not included in the underlying index.

ITOT includes low-cost and convenient access to the total U.S. stock market in a single fund; exposure to the total1 U.S. stock market, ranging from some of the smallest to largest companies; and can be used at the core of your portfolio to seek long-term growth.

“Just as I felt a surge in optimism when I voted for the first time, and I’m optimistic there will be new opportunities for investors across financial markets. For ETF investors, the election is a chance to reevaluate portfolios to make sure that holdings are in sync with the pace of change,” Senra said.

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