Keep it simple. That's great advice that applies to many situations throughout your life. Today, let's focus on how keeping it simple will lead to great investment returns. Below are my two picks of simple exchange-traded funds (ETFs) that anyone can buy and hold forever for $1,000.
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Vanguard Growth Index Fund ETF
The first one is Vanguard Growth Index Fund ETF (Vug 0.91%)). For investors who want to set it up and forget about it, the Vanguard Growth ETF is an attractive choice. The fund focuses on large growth stocks, so of course it is heavily weighted towards the “epic seven.”
Vug Total Return Level Data based on data YCHARTS
surely, nvidia, apple, Microsoft, alphabet, Meta Platform, Amazonand Tesla It accounts for more than 54% of the fund's total holdings. But that shouldn't be a reason to avoid this fund. I was given those stocks.” big Weighting within key benchmark indexes, such as S&P 500Vanguard Growth ETFs are a solid choice for most portfolios.
in fact, It's not just the funds It was followed by Benchmark index performance The past 10 years, Fund I beat it. Back in 2015, the fund generated a combined annual growth rate (CAGR) of 14.2%, reaching the S&P 500 CAGR of 12.5%.
More than thatinvestors can take advantage of this outperformance at a very low cost. The fund charges an expense ratio of 0.04%, making it one of the cheapest ETFs Around it. For example, someone who invests $10,000 in a fund will only pay $4 a year. Given its low prices and solid performance, long-term investors should strongly consider this simple ETF.
Vanguard High Dividend Indew Index Fund ETF
Next is Vanguard High Dividend Indew Index Fund ETF (Vym) -0.23%)). While Vanguard Growth ETF is perfect for investors looking for growth and long-term retirement investors, Vanguard High Dividend Index Index ETF offers different suggestions. As the fund focuses on providing income to investors, its holdings reflect an income-oriented approach with many value stocks.
^spx Data based on data YCHARTS
That top holdings list is proud of Warren Buffett. Bank of America, coca colaand Chevronwith Other iconic companies I like jpmorgan chain, Broadcom, Walmart, exxonmobiland Proctor & Gamble.
As is clear from the holding list, There are many stocks From the finance, energy and healthcare sectors. Many of these stocks pay dividends. As a result, the fund generates a significant amount of revenue that After that Dispersion To that investor.
At the time of writing, the fund boasts a dividend yield of 2.9%. This is not the best dividend yield investors can find among ETFs, There's a reason for that Investors seeking income may still want to consider this fund. largely In particular, It boasts a rock bottom expense ratio of 0.06%. That is, investors pay $6 a year for every $10,000 invested in the fund, which means they store more of their hard-earned money while working.
Investors who want to keep it simple with respected value stocks, solid dividend yields and low rates would be wise to choose this fund.
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. JPMorgan Chase is the advertising partner of Motley Fool Money. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool's board of directors. Bank of America is the advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of Motley Fool's board of directors. Jake Lerch has positions in Alphabet, Amazon, Coca-Cola, Exxonmobil, Nvidia, Procter & Gamble, and Tesla. Motley Fools holds and recommends Alphabet, Amazon, Apple, Bank of America, Chevron, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index-Vanguard Growth ETF, Vanguard Whitehall Funds-Vanguard-Vanguard High Dividendend ETF, and Walmart. Motley Fool recommends Broadcom and recommends the following options: A $395 call at Microsoft for January 2026 and a $405 call at short term Microsoft for January 2026. Motley Fools have a disclosure policy.
