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Why worry about deleveraging if a company is making money in foreign countries that have no consumer debt?
BMW, Caterpillar, Apple, McDonalds, Walmart, Exxon, Halliburton, Deere,
Pfizer, LVMH may not fit into the category you describe but why not own some of them?
Many stock funds that I consider good would have these kinds of companies. I have read here and there that theoretically the best kind of stocks are small cap value stocks.
There is a Vanguard small cap value index fund for example.
I own T.Rowe Price Small Cap Value which I like very much but the Vanguard fund might be cheaper to own and more tax-efficient in an open account.
Vanguard Primecap has been good and also Capital Opportunity but I don't know if they're still open.
There is a lousy Vanguard fund to avoid called US Growth. This is proof that index funds are much better than many managed funds.
I looked at VIG and for a dividend yield ETF it didn't have a competitive yield. I bought SDY and DVY instead.
Just make certain you pick one with:
1) high trading volume (1 Million +)
2) large asset base ($1.0 Billion +)
3) Low Expense ratio
4) Passive Index Investment philosophy
5) good sponsorship
I like Vanguard, SPDR and iShares. Don't try to find that winning ETF - just make certain your asset allocation is appropriate for your age group and retirement time period.
I found a few on Vanguard.
Such as VIG, VDC, VPU etc.
Any specific ETF among these or a mutual fund that you'd recommend for long term savings?
I don't like the total stock market fund because I am a believer in secular cycle investing.
We are in a secular deleveraging cycle and I'd be picky to invest in stocks that would do well in such a cycle.
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