Best ETFs & Index Funds to Build Wealth in 2026 (My Actual Portfolio + 10-Year Data)
Best ETFs & Index Funds to Build Wealth in 2026
My actual portfolio · 10-year performance data · Growth vs Dividends · What I'd recommend to a friend
I started investing in 2016 when I first came to the US as a college student. Back then, I didn't know the difference between an ETF and a mutual fund. Ten years later, I've built a portfolio around 5 core funds that have grown my money significantly — and I want to share exactly what they are, how they've performed, and what I'd recommend if you're starting today.
This isn't financial advice. This is what I personally hold, why I hold it, and the actual numbers behind each fund.
π My Current Portfolio (5 Funds)
| Fund | Type | What It Tracks | Expense Ratio | My Role for It |
|---|---|---|---|---|
| FXAIX | Mutual Fund | S&P 500 (500 largest US companies) | 0.015% | Core holding — the backbone |
| QQQ | ETF | Nasdaq-100 (top 100 tech-heavy stocks) | 0.20% | Growth booster — tech bet |
| FSPGX | Mutual Fund | Russell 1000 Growth (large-cap US growth) | 0.035% | Growth tilt — cheaper than QQQ |
| SCHD | ETF | Dow Jones US Dividend 100 (high-dividend stocks) | 0.06% | Dividend income — stability |
| FSPSX | Mutual Fund | MSCI EAFE (international developed markets) | 0.035% | International diversification |
π What Each Fund Actually Is
FXAIX — Fidelity 500 Index Fund
The simplest, most boring, most effective investment. It tracks the S&P 500 — the 500 largest US companies including Apple, Microsoft, Amazon, Nvidia, Google, Meta, etc. When people say "just buy the index," this is what they mean. The 0.015% expense ratio means you pay just $1.50 per year for every $10,000 invested. This is the Fidelity equivalent of VOO (Vanguard) or IVV (iShares).
QQQ — Invesco QQQ Trust (Nasdaq-100)
The "tech-heavy" index. It tracks the 100 largest non-financial companies on the Nasdaq — about 49% is information technology. Top holdings include Apple, Microsoft, Nvidia, Broadcom, Meta, Amazon, Tesla, and Google. It's more volatile than the S&P 500 but has historically outperformed it. Think of QQQ as the S&P 500 on steroids — higher highs, lower lows.
FSPGX — Fidelity Large Cap Growth Index Fund
Tracks the Russell 1000 Growth Index — large US companies that are growing fast. Similar to QQQ but broader (includes more companies) and much cheaper (0.035% vs 0.20%). It overlaps heavily with QQQ but also includes growth stocks outside of tech. If you can only pick one growth fund, FSPGX gives you similar exposure to QQQ at a fraction of the cost.
SCHD — Schwab U.S. Dividend Equity ETF
The "dividend king." Tracks the Dow Jones U.S. Dividend 100 Index — 100 US stocks with strong dividend histories. Top holdings include Coca-Cola, Pfizer, Cisco, Home Depot, Verizon. It pays a ~3.5% dividend yield quarterly. SCHD is for people who want passive income — it won't grow as fast as QQQ, but it pays you cash every quarter. Reddit's r/dividends absolutely loves this ETF.
FSPSX — Fidelity International Index Fund
Tracks the MSCI EAFE Index — developed international markets excluding the US and Canada. This gives you exposure to Japan, UK, France, Germany, Switzerland, Australia, etc. International stocks have underperformed US stocks for the past decade, but diversification matters — in 2025, FSPSX returned +31.98% while FXAIX returned +18.20%. The world doesn't always follow the US market.
π 10-Year Performance (2016–2026)
All data below is total return with dividends reinvested, from June 2016 to April 2026. Source: TotalRealReturns.com
π° Growth of $10,000 Invested in 2016
| Fund | Total Return | Annual Return | $10,000 → | Dividend Yield | Expense Ratio |
|---|---|---|---|---|---|
| QQQ | +560.53% | +21.10%/yr | $66,053 | ~0.6% | 0.20% |
| FSPGX | +449.32% | +18.86%/yr | $54,932 | ~0.5% | 0.035% |
| FXAIX | +308.64% | +15.35%/yr | $40,864 | ~1.3% | 0.015% |
| SCHD | +220.28% | +12.53%/yr | $32,028 | ~3.5% | 0.06% |
| FSPSX | +152.81% | +9.86%/yr | $25,281 | ~2.5% | 0.035% |
π $10,000 in QQQ in 2016 → $66,053 today. That's 6.6x your money in 10 years.
π Year-by-Year Returns (2016–2026)
This is where it gets interesting. No fund wins every year. That's why diversification matters.
| Year | FSPGX | FSPSX | FXAIX | QQQ | SCHD | Winner |
|---|---|---|---|---|---|---|
| 2026 YTD | +1.40% | +5.99% | +5.05% | +8.21% | +14.71% | SCHD |
| 2025 | +18.54% | +31.98% | +18.20% | +20.77% | +4.34% | FSPSX |
| 2024 | +33.27% | +3.70% | +25.01% | +25.58% | +11.66% | FSPGX |
| 2023 | +42.77% | +18.31% | +26.29% | +54.86% | +4.54% | QQQ |
| 2022 | -29.17% | -14.23% | -18.14% | -32.58% | -3.26% | SCHD |
| 2021 | +29.81% | +11.45% | +28.71% | +27.42% | +29.87% | SCHD |
| 2020 | +40.11% | +8.16% | +18.42% | +48.62% | +15.03% | QQQ |
| 2019 | +36.44% | +22.03% | +31.48% | +38.96% | +27.29% | QQQ |
| 2018 | -1.35% | -13.55% | -4.43% | -0.13% | -5.56% | QQQ |
| 2017 | +30.42% | +25.55% | +21.82% | +32.66% | +20.85% | QQQ |
| 2016 | +6.21% | +1.44% | +11.97% | +7.10% | +16.45% | SCHD |
Key takeaways from the data:
- QQQ won 5 out of 11 years — the growth king, but also the biggest loser in 2022 (-32.58%)
- SCHD won 4 years — including 2022 when everything else crashed. Only -3.26% while QQQ lost -32.58%. Dividends cushion the fall.
- FSPSX won 2025 — international stocks had their best year in a decade (+31.98%). The "US-only" crowd missed out.
- 2022 was brutal for growth — FSPGX lost -29.17%, QQQ lost -32.58%. But they recovered everything and more in 2023-2024.
- No single fund wins every year. That's why you hold multiple.
π Worst Drawdowns (How Bad Can It Get?)
Before you invest, you need to know the worst-case scenario. Here's the maximum peak-to-trough decline for each fund:
| Fund | Worst Drawdown | When | What Happened |
|---|---|---|---|
| QQQ | -35.12% | Nov 2022 | Fed rate hikes crushed tech valuations |
| FXAIX | -33.79% | Mar 2020 | COVID crash — recovered in 5 months |
| FSPSX | -33.69% | Mar 2020 | COVID crash — slower recovery than US |
| SCHD | -33.37% | Mar 2020 | COVID crash — but dividends kept paying |
| FSPGX | -32.66% | Oct 2022 | Rate hikes + growth stock selloff |
The lesson: Every fund dropped ~33% at some point. If you can't stomach seeing your $50,000 become $33,000 temporarily, you need to adjust your risk tolerance. But every single one of these funds recovered and went on to new all-time highs.
⚔️ Growth vs Dividends: The Great Debate
Reddit's r/Bogleheads and r/dividends argue about this endlessly. Here's my take:
| Growth (QQQ/FSPGX) | Dividends (SCHD) | |
|---|---|---|
| 10-year return | +560% (QQQ) | +220% (SCHD) |
| Dividend yield | ~0.6% | ~3.5% |
| 2022 crash | -32.58% | -3.26% |
| Best for | 20s-30s, long time horizon | 40s+, income, lower volatility |
| Tax efficiency | Better (less taxable events) | Worse (dividends taxed quarterly) |
| Sleep at night | Harder during crashes | Easier — dividends keep coming |
My approach: I hold both. Growth funds (QQQ, FSPGX) for long-term wealth building, SCHD for stability and passive income. In your 20s-30s, lean heavier into growth. As you get older, shift more toward dividends.
π Other ETFs Worth Considering
| Fund | What It Is | Expense Ratio | Best For |
|---|---|---|---|
| VTI | Vanguard Total US Stock Market | 0.03% | One-fund US portfolio (includes small/mid caps) |
| VOO | Vanguard S&P 500 ETF | 0.03% | Same as FXAIX but in ETF form (Vanguard users) |
| VXUS | Vanguard Total International | 0.07% | Broader international (includes emerging markets) |
| VGT | Vanguard Info Technology ETF | 0.10% | Pure tech sector bet (more concentrated than QQQ) |
| JEPI | JPMorgan Equity Premium Income | 0.35% | High income (~7% yield) — sells covered calls |
π― My Recommendation: Model Portfolios
Beginner (1 fund, set and forget)
100% FXAIX (or VOO/VTI) — Just buy the S&P 500 and don't look at it for 10 years. Seriously. This beats 90% of actively managed funds. Warren Buffett recommends this exact strategy.
Growth-Focused (20s-30s, aggressive)
50% FXAIX + 30% QQQ + 10% FSPSX + 10% SCHD — Heavy US growth with some international diversification and a small dividend cushion. This is close to my actual allocation.
Balanced (30s-40s, moderate)
40% FXAIX + 20% FSPGX + 15% SCHD + 15% FSPSX + 10% BND — Balanced between growth and stability. Adding BND (bond index) reduces volatility. Good for people who want growth but can't handle -30% drawdowns.
Income-Focused (40s+, conservative)
30% SCHD + 25% FXAIX + 20% FSPSX + 15% BND + 10% JEPI — Prioritizes dividend income and stability. SCHD + JEPI together give you ~4-5% annual dividend income. Good for people approaching retirement or wanting passive income.
π‘ 5 Rules I Follow
1. Dollar-Cost Average (DCA)
Invest the same amount every paycheck, regardless of what the market is doing. Don't try to time the market. Time IN the market beats timing the market.
2. Max Out Tax-Advantaged Accounts First
Priority: 401k match → Roth IRA ($7,000/yr) → Max 401k ($23,500/yr) → Taxable brokerage. Don't invest in a taxable account before maxing your Roth IRA.
3. Keep Expense Ratios Low
A 1% expense ratio vs 0.03% costs you $100,000+ over 30 years on a $500k portfolio. Every basis point matters. All 5 of my funds are under 0.20%.
4. Don't Panic Sell
In 2022, QQQ dropped -32.58%. I didn't sell a single share. By 2023, it was up +54.86%. The people who panic sold locked in their losses. The people who held (or bought more) made a fortune.
5. Rebalance Once a Year
If QQQ grows faster than SCHD, your portfolio gets out of balance. Once a year, sell some winners and buy more of the laggards to maintain your target allocation. Or just direct new contributions to the underweight funds.
π Bottom Line
If you do nothing else: Put money into FXAIX (or VOO) every month. That's it. You'll beat 90% of professional fund managers over 20 years.
If you want more growth: Add QQQ or FSPGX. Accept more volatility for potentially higher returns.
If you want passive income: Add SCHD. The 3.5% dividend yield means $350/year per $10,000 invested, paid quarterly.
If you want diversification: Add FSPSX. International stocks don't always follow the US — 2025 proved that (+31.98% vs +18.20%).
The best time to start investing was 10 years ago. The second best time is today. Start with whatever you can — even $50/month — and let compound interest do its thing.
Sources: TotalRealReturns.com · Yahoo Finance · Morningstar · r/Bogleheads · r/dividends
Last updated: April 2026. All performance data as of April 24, 2026.