Dimon Flags High Valuations: 3 ETFs for Long-Term Investors to Consider Now

JPMorgan Chase(NYSE: JPM) CEO Jamie Dimon recently warned in a CNBC podcast interview that he would avoid buying most stocks at current valuation levels. However, Dimon’s cautious stance doesn’t necessarily warrant a similar reaction from everyday investors. As a billionaire nearing retirement, his financial objectives and time horizon likely differ significantly from those of the average investor. Moreover, market timing remains an elusive skill, even for top banking executives.

Even investors who share Dimon’s valuation concerns should maintain a consistent investment approach. Below are three exchange-traded funds (ETFs) suited for long-term investors seeking broad exposure.

Jamie Dimon, JPMorgan Chase CEO. Image source: JP Morgan Chase.

Vanguard Total Stock Market ETF (VTI): Broad Exposure with a 9.48% 25-Year Track Record

Despite elevated valuations, a broadly diversified U.S. equity index fund like the Vanguard Total Stock Market ETF (NYSEMKT: VTI) remains a cornerstone for long-term portfolios. The fund holds roughly 3,531 stocks across all market capitalizations and carries an expense ratio of just 0.03%.

Since its May 2001 inception, the fund has returned 9.48% annualized over 25 years. Recent performance has been stronger, with 10-year and 5-year annualized returns of 15.04% and 12.24%, respectively.

Similar to the S&P 500, the fund has become concentrated in technology, which now represents 41% of assets. The top ten holdings are all major technology companies, while industrials and consumer discretionary trail at roughly 12.5% and 12.3%.

However, market-cap-weighted indexes naturally rebalance as valuations shift. If overvalued sectors correct, the fund’s composition will automatically tilt toward outperforming areas, providing a built-in mechanism for rotation.

Schwab U.S. Dividend Equity ETF (SCHD): Quality Dividend Focus with a 13.09% 14-Year Record

Investors seeking to reduce exposure to high-flying technology stocks may consider dividend-focused ETFs, which typically emphasize value-oriented companies less correlated with the artificial intelligence trade.

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) stands out in this category, screening 103 stocks for fundamental quality at a 0.06% expense ratio. Since its October 2011 launch, it has posted a 13.09% annualized return, including a 24.08% gain over the trailing year.

Technology represents just 9.2% of the portfolio. Leading sectors include healthcare (20.7%), consumer staples (20.4%), and energy (14.1%). Top holdings feature healthcare giants such as Abbott Laboratories, UnitedHealth Group, and Merck, each near 4.5%.

The fund offers a trailing 12-month yield of 3.30% and trades at a forward P/E of roughly 19—a 25% discount to the S&P 500’s multiple of 25.5—suggesting relative value.

Vanguard International High Dividend Yield ETF (VYMI): Global Diversification with a 3.68% Yield

For further diversification away from U.S. tech concentration, the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) provides exposure to 1,565 stocks across 45 developed markets. The fund has posted strong recent results, with a 21.1% three-year annualized return and roughly 27.5% over the past year.

The portfolio targets profitable, financially sound companies in developed markets. Leading holdings include global banks HSBC Holdings and Royal Bank of Canada, alongside pharmaceutical leaders Novartis and Roche Holding. VYMI yields 3.68% on a trailing basis and trades at a P/E of 14.6, a significant discount to the U.S. benchmark.

The Case for Staying Invested: VTI, SCHD, and VYMI

Market direction is inherently unpredictable. While volatility and bear markets occur, equities have historically recovered to reward patient investors. A disciplined buy-and-hold strategy using a broad fund like VTI remains a prudent long-term approach.

Alternatively, investors wishing to pivot from expensive technology and AI exposure can allocate to dividend-focused strategies like SCHD or VYMI for valuation-sensitive diversification.

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