1 ETF to Buy and Hold for 2026 and 1 to Avoid

Group 1 - The right investments, particularly in ETFs, can significantly impact long-term financial growth over a decade [1] - Not all ETFs are equally effective; distinguishing between high-performing and underperforming funds is crucial for investors [2] - The VanEck Semiconductor ETF has shown exceptional performance with a compound annualized return of 31% over the past decade, making it a strong choice for investors [5] Group 2 - The VanEck Semiconductor ETF consists of 25 holdings, primarily chipmakers, with its top 10 holdings accounting for 75% of its total value; Nvidia, despite being the worst performer in the last year, still yielded a 33% return [6] - Investors seeking diversification can consider broader ETFs alongside the VanEck Semiconductor ETF to balance their portfolios [7] - The Direxion Daily Junior Gold Miners Index Bear 2X Shares ETF has faced significant losses, with a 90% drop year-to-date, highlighting the risks associated with leveraged funds [8] Group 3 - Leveraged funds, such as the Direxion ETF, pose risks that most investors should avoid, and the fund's high expense ratio of 0.89% reflects the need for active management [9] - A prudent investment strategy involves avoiding leveraged plays and focusing on ETFs that have consistently outperformed the S&P 500 over time [10]