"In a world that is full of potential market volatility, and maybe there is, maybe there isn't "AI bubble," investors, mostly of the retail variety, are looking for a safe place to park their cash. As a result, ETFs have been surging in popularity in 2025 as hopeful investors want to go for a ride and earn money as the "FAANG" stocks push the market to new heights."
"Before 2026 arrives, there are three ETFs that stand out for investors who are looking for income stability, long-term performance, and broad diversification. Some of the best recommendations aren't high-yield funds, but ETFs, where their total return profiles have become essential for portfolios that rely on dividends and capital appreciation to fund retirement. For income investors who focus on yield, it's worth remembering that high yield without growth can lead to flat returns over time."
Investors face potential market volatility and uncertain AI-driven valuations while retail buyers seek safe cash parking and ride equity rallies. ETFs surged in 2025 as FAANG-led gains attracted hopeful investors. Heading into 2026, cash yields are slipping and bond prospects dim as interest rates are likely to fall multiple times. Three ETFs stand out for income investors seeking stability, long-term performance, and diversification; emphasis should be on total-return ETFs rather than raw high yield. High yield without growth can create flat long-term returns. Cash and CDs cannot provide necessary growth, so core ETFs like iShares Core S&P 500 (IVV) can serve as durable portfolio backbones.
Read at 24/7 Wall St.
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