The 50 Best Mutual Funds— And 50 Best ETFs

Our 2019 Fund Recommendations Help To Take The Confusion And Anxiety Out Of Building A Diversified Investment Portfolio.

- Ian Salisbury

AS AMERICA CLOSES OUT THE FIRST DECADE since the 2008 financial crisis, things look pretty good. The Dow, which hit a low in March 2009, has increased roughly fourfold. If you’ve been saving and investing regularly for your retirement, chances are you’ve done well.

When it comes to financial markets, however, potential trouble is always lurking just beneath the surface. Many experts think the long bull run has left many U.S. stocks dangerously overvalued, trading at about 31 times their long-term earnings, compared with a historical average of 17 times.

Meanwhile, rising interest rates, which hurt bond prices and make it more expensive for companies to borrow and invest, are another issue. And don’t forget what’s going on abroad, where trade tensions and other political dysfunction have been weighing on stock prices in both Europe and Asia.

In other words, whatever the outlook, you need an investment plan that will help you weather unhappy surprises. Fortunately, a long-term strategy is just what our MONEY 50/50 fund lists aim to offer.

While there are thousands of mutual funds and ETFs to choose from—more than 150 new ETFs have appeared in 2018 alone—we pare this vast universe down to a more manageable set of choices, ideally two or three for each different investment decision you’re likely to face.

To make our picks, we’ve focused on criteria most likely to translate into long-term investing success: low fees and, for the actively managed funds included on our list, experienced managers with strong track records that extend not just over three or five years but, ideally, over 10 or 15.