3 Simple Vanguard ETFs to Buy With $1,000 and Hold for a Lifetime – Yahoo Finance
Anyone can succeed in investing. All you need is some money, a little know-how, and time.
With that in mind, let's consider three simple exchange-traded funds (ETFs) that are worth holding for the long term.
Image source: Getty Images.
At the top of my list are: Vanguard Growth ETF(NYSEMKT: VUG).
VUG Total Return Level Chart
The great thing about this index-tracking ETF is that it tracks many of the biggest and best stocks at a reasonable price. fund linked to indexes reflecting around 400 growth stocks, ranging from giant stocks like microsoft and Nvidia even small names like Equinix and synopsis.
symbol
Company Name
Ownership percentage
AAPL
apple
12.06%
MSFT
microsoft
11.42%
NVDA
Nvidia
10.00%
google/google
alphabet
6.00%
AMZN
Amazon
5.99%
Meta
meta platform
4.73%
lily
Eli Lilly
2.87%
TSLA
tesla
2.70%
V
visa
1.70%
Source: Vanguard Funds filings
In terms of fees, this fund provides plenty of satisfaction for cost-sensitive investors. This fund boasts just 0.04%. expense ratioThat means investors pay only $4 a year for every $10,000 invested in the fund.
When it comes to risks and downsides, this fund has some.
First, this fund is not. wonderful An option for investors seeking income. and dividend yield At only 0.5%, this fund cannot generate enough cash for investors who need it. Passive income.
Second, since the fund concentrated When it comes to growth stocks, the fund will experience: bigger Decreases during periods of volatility compared to most value-oriented funds.
Having said that, The Vanguard Growth ETF remains a solid choice for investors looking for growth over the medium to long term.
Next, Vanguard Value ETF(NYSEMKT: VTV).
VTV total return level chart
For investors looking for a value fund, this is the one for you. Similar to growth-oriented funds, this fund tracks an index of 400 stocks; value. So the top holdings are not Microsoft and Nvidia, but than thatBerkshirehathaway and exxon mobil.
symbol
Company Name
Ownership percentage
BRK.B
Berkshire Hathaway
3.17%
J.P.M.
JP Morgan Chase
2.74%
united nations
united health group
2.46%
XOM
exxon mobil
2.38%
P.G.
procter and gamble
1.86%
HD
home depot
1.84%
AVGO
broadcom
1.83%
JNJ
johnson & johnson
1.78%
WMT
walmart
1.63%
ABV
AbbVie
1.59%
Source: Vanguard Funds filings
Therefore, this fund also generates more income for investors. The dividend yield is 2.3%, meaning that a $10,000 investment will earn you approximately $230 in annual dividend income.
In terms of costs, the fund has an expense ratio of 0.04%, which is about as low as an ETF's expense ratio. This means investors are eager to keep more of their money in the stock market, which is a good thing.
Finally, looking at the risks and downsides, there is a risk that the fund will underperform as it focuses on value. Over the past 10 years, the Vanguard Growth ETF outperformed the Vanguard Value ETF by more than 150%. This includes significant benefits for value funds through dividend payments and reinvestment.
In other words, investors who have decades left until retirement: better service provided to increase their risk level, So they are Avoid underperforming the market. However, for investors looking for passive income or who want to reduce risk,Vanguard Value ETF could be the right choice.
lastly, Vanguard Total Stock Market ETF(NYSEMKT:VTI).
what? special What makes this fund unique is that it occupies a space between the aforementioned growth funds and value funds. As an index-linked fund that pursues provide be wide With exposure to the US stock market, this fund has a little bit of everything.
symbol
Company Name
Ownership percentage
AAPL
apple
6.07%
MSFT
microsoft
5.77%
NVDA
Nvidia
5.12%
google/google
alphabet
3.18%
AMZN
Amazon
3.17%
meta
meta platform
2.25%
BRK.B
Berkshire Hathaway
1.47%
AVGO
broadcom
1.45%
lily
Eli Lilly
1.37%
TSLA
tesla
1.28%
Source: Vanguard Funds filings
Similarly, its 10-year performance falls right between growth and value funds. It produced 10 years of results multiple years Growth rate (CAGR) is 13.5%. This compares to 16.4% for the Vanguard Growth ETF and 11.5% for the Vanguard Value ETF.
VUG Total Return Level Chart
If you look at fees, this fund is even cheaper than growth and value funds. With an expense ratio of 0.03%, investors will only pay $3 per year for every $10,000 invested in the fund.
In terms of passive income, this fund has a dividend yield of 1.3%. It's not great, but it's not terrible, and it's generally in line with the yield. S&P500 average.
Finally, when it comes to risks and downsides, this fund has nothing on it. Selection subjectrisk, Because it's too diverse. In fact, its main drawback is that the market exposure is so broad that it can be considered overly diversified.
Nevertheless, if the stock market declines, the Fund's value will decrease., Or we enter a bear market. But we must remember that this is normal and over time, the stock market has always recovered and made new highs after every bear market.
Therefore, for investors looking for a diversified and cheap middle ground fund,Vanguard Total Stock Market ETF may be a wise choice.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Motley Fool's Ascent. Randi Zuckerberg is a former Facebook head of market development and spokesperson, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. Jake Larch It has positions in Alphabet, Amazon, ExxonMobil, Nvidia, Procter & Gamble, Tesla, and Visa. The Motley Fool includes AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Equinix, Home Depot, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Synopsys, Tesla, Vanguard Index Fund – Vanguard Growth We hold positions in and recommend ETFs and Vanguard Index Funds. Vanguard Value ETF, Vanguard Total Stock Market ETF, Visa, Walmart. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group and recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has Disclosure policy.
