Morningstar identified three exchange-traded funds as solid picks for long-term investors, recommending a mix of low-cost stock and bond exposure designed to hold up through market cycles. Published June 10, 2026, the analysis centers on diversified index funds and automated contributions as a path to sustainable wealth building.
The three ETFs are the State Street SPDR Portfolio S&P 500 ETF (SPYM), the Fidelity Investment Grade Bond ETF (FIGB), and the iShares LifePath Target Date 2070 ETF (ITDJ). Each addresses a different piece of a long-term portfolio and reflects Morningstar’s view that boring often beats exciting in investing.
SPYM offers the cheapest way to own the S&P 500, charging just 2 basis points. Morningstar’s research found that less than 5% of active large-blend funds survived and outperformed their passive peers over the past 15 years. SPYM performed the best among S&P 500 ETFs over the past decade, making it a stellar choice for investors seeking long-term US stock exposure without paying for active management.
Bonds tell a different story. Active bond managers have a genuine edge because bonds lack the high liquidity and transparency of stock markets. FIGB is actively managed by Fidelity’s core/core-plus team and charges 36 basis points, on the lower end of its category. Since its March 2021 inception through April 2026, it ranked in the top quartile of its peers. The team rotates across Treasuries, investment-grade corporates, mortgage-backed securities, and can even shift into small doses of high-yield and emerging-markets debt when warranted.
For hands-off retirement planning, ITDJ offers a single-fund solution. The ETF starts aggressive—currently 99% stocks and 1% bonds—and gradually shifts toward bonds as 2070 approaches, eventually reaching a 60% bond, 40% stock mix by the target date. The portfolio charges under 13 basis points and diversifies across US stocks, bonds, and international investments through underlying iShares products.
The recommendation reflects a broader shift toward passive investing. In the first quarter of 2026, passive funds attracted EUR 120 billion in flows—nearly double the EUR 64.1 billion gathered by active funds. Only 38% of active strategies survived and beat their passive counterparts in 2025, down 4 percentage points from a year earlier.
Sources
- Morningstar — Three ETF recommendations for 2026 and beyond, including ticker symbols, expense ratios, and performance data
- Morningstar — Active/Passive Barometer research showing 15-year outperformance rates for large-blend funds
- Morningstar — Q1 2026 fund flow data comparing passive and active fund inflows
- Morningstar — 2025 active vs. passive performance statistics
