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The Vanguard S&P 500 ETF stands out as a solid foundational investment.
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If you’re looking for more growth potential, Vanguard’s Growth ETFs and Information Technology ETFs might be worth considering.
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For those seeking diversification, the Vanguard Mega Cap Value ETF and the Vanguard International High Dividend ETF can be excellent choices.
Currently, with the stock market nearing all-time highs, a lot of investors might be tempted to wait for a dip before making any new stock purchases. But, well, that can often backfire. A JP Morgan survey from last year indicated that since 1950, the S&P 500 reached new highs around 7% of the time. Interestingly, after almost a third of those days, the market didn’t dip below the level it was at that very day. So, waiting could mean missing out on some of the market’s biggest gains.
A more intelligent approach could involve dollar-cost averaging. Regularly investing a set amount helps take the unpredictability of market timing out of the equation, allowing you to benefit from compound growth over time. Starting with $500 is definitely feasible. The key here is to keep adding to your portfolio over time. Vanguard is known for its low-cost funds, which makes it a good starting point.
These five Vanguard ETFs could serve as a mainstay in any well-rounded investment portfolio for a long time.
Vanguard S&P 500 ETF (symbol: VOO) mirrors the performance of the S&P 500, providing exposure to the largest 500 companies in the U.S. Notable holdings include market giants like Nvidia, Microsoft, and Apple.
Since indexes adjust to include new market leaders, this fund can be a reliable long-term investment. Over the last decade, ETFs have dramatically returned an average of 13.6% annually by the end of July, which is quite impressive.
Its low expense ratio of just 0.03% is another significant perk. This translates to an annual cost of only $3 for every $10,000 invested. If you’re aiming to build wealth over time using average dollar-cost strategies, this ETF comes highly recommended—it’s likely one of the best choices if you’re limited to one fund for the next 30 years.
On the other hand, if you’re after exposure to fast-growing companies, then the Vanguard Growth ETF (symbol: VUG) might suit your needs. It follows the CRSP US Large Cap Growth Index, focusing on companies that are increasing their revenue more rapidly—and tends to favor tech-oriented names.
This focus has proven beneficial for investors. Over the past decade, the ETF has averaged annual returns of about 16.3% until the end of July, outperforming the broader market. If you anticipate technology and growth stocks continuing their upward trend, this ETF should be high on your list.
The funds are also relatively affordable, with a cost ratio of just 0.04%. While it does lack some diversification compared to the Vanguard S&P 500 ETF, you might find the higher potential returns worthwhile—using both could really elevate your portfolio.
Vanguard Information Technology ETF (symbol: VGT) appeals to those seeking deeper involvement in the tech sector. It tracks the MSCI US Investable Market Information Technology 25/50 Index, focusing on major firms in the semiconductor, software, and AI markets.
This fund is quite concentrated, with nearly 45% of its holdings in Nvidia, Microsoft, and Apple alone. But that level of concentration has led to impressive results, boasting an annual average growth of 21.6% over the last decade.
The expense ratio is 0.09%, which is low compared to similar sector-focused funds. It doesn’t hold some well-known names like Alphabet or Amazon, yet still includes important players like Broadcom, AMD, and Palantir. So, while you’d probably want to avoid making this ETF your sole focus, it’s a great route for targeted exposure to pivotal technology trends.
Now, growth stocks are definitely captivating, but value stocks have their merit too. The Vanguard Mega Cap Value ETF (symbol: MGV) provides access to some of the most value-oriented companies, following the CRSP US Mega Cap Value Index, which skews toward finance, healthcare, and consumer staples.
Its major holdings include names like Berkshire Hathaway, JPMorgan Chase, Bank of America, Walmart, and ExxonMobil. Healthcare leaders like UnitedHealth, Johnson & Johnson, and Abbvie are also prominent. Together, these can offer a little cushion when growth stocks slow down, helping balance your portfolio.
While not overly flashy, its performance has been stable, averaging 14.3% annual returns over the past five years and 10.8% over the past decade. And with a low expense ratio of 0.07%, it’s an accessible option for anyone looking to moderate their growth investments.
Since many U.S. investors primarily hold domestic equities, gaining some international exposure can be a smart strategy. Acquiring the Vanguard International High Dividend ETF (symbol: VIMI) is one way to do that. It tracks the FTSE Global High Dividend Yield Index, focusing on non-U.S. companies with above-average dividend yields.
This ETF showcases global diversity, with over 40% of its investments in Europe, around 25% in the Asia-Pacific region, and a bit over 20% in emerging markets. Heavyweights like Nestlé, Roche, Toyota, and Shell contribute to this mix, adding geographical diversification and solid yields.
The results are impressive—by mid-August, the ETF had returned approximately 26.8% annually, netting 13.8% annual returns over the past five years. With a reasonable expense ratio of 0.17%, this ETF can enhance your portfolio while providing that critical layer of global diversification.
Just something to keep in mind if you’re considering investing in the Vanguard S&P 500 ETF.
The folks at Motley Fool Stock Advisor have pinpointed what they see as the 10 best stocks to buy right now… surprisingly, the Vanguard S&P 500 ETF doesn’t feature on their list. These stocks hold the potential for impressive gains in the next few years.
To give you an idea, think back to when Netflix was first recommended on December 17, 2004. If you had invested $1,000 then, it would now be worth around $654,624! Or look at Nvidia, which was recommended on April 15, 2005. That same $1,000 investment would now stand at $1,075,117!
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For more details, check out the 10 stocks they highlight.
*Returns shown as of August 18, 2025.
Bank of America is a partner of Motley Fool Money. JPMorgan Chase also partners with them. A team member has outlined recommendations including AbbVie, AMD, Alphabet, Amazon, Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Walmart among others. They also endorse Broadcom, Johnson & Johnson, Nestlé, Roche Holding AG, and UnitedHealth Group. For more, refer to the Disclosure Policy.
