ETFs
2 Best ETFs to Buy Now That Could Set You Up for Life
Here is a simple but powerful wealth creation strategy.
Investing doesn’t have to be difficult. Just a few well-chosen exchange-traded funds (AND F) can make things easy – and lucrative.
Read on to learn about two great ETFs that can help you safely benefit from the growing global economy and instantly diversify your portfolio with exposure to thousands of stocks.
This solid ETF can form the basis of your investment portfolio
THE Vanguard Total Stock Market ETF (VTI 0.49%) is a great, relatively low-risk way to invest in US stocks. This well-diversified ETF holds positions in more than 3,700 large, mid-sized and small cap businesses. Industry giants like Microsoft, AppleAnd Nvidia are among the fund’s largest holdings.
Importantly, the Vanguard Total Stock Market ETF has a low expense ratio of just 0.03%. That’s about $3 in expenses per year for every $10,000 invested in the fund. By charging these small fees to cover its relatively low operating expenses, Vanguard can pass on almost all of the ETF’s returns to its shareholders. And these earnings can create immense wealth over time.
There are several ways to purchase the ETF. You could invest a lump sum today and you’ll probably do very well in the long run. You can also purchase regular amounts of the fund on a schedule that suits you (perhaps monthly). This proven strategy is called spread of costs in dollars, and it can help reduce the stress of having to decide when to buy. It can also reduce your risks by spreading your purchases over time.
All in all, the Vanguard Total Stock Market ETF gives you a simple way to invest in the U.S. economy. It’s a smart bet to make, because as legendary investor Warren Buffett says, “Never bet against America.”
This International ETF Could Add Another Powerful Growth Element to Your Portfolio
Investors who want even more growth and diversification should consider a international fund. An excellent option is the Vanguard Total International Equity ETF (VXUS 0.62%), which could further reduce your risks while increasing your earning potential when combined with a US stock ETF.
This fund offers its shareholders exposure to more than 8,600 stocks of companies located outside the United States. These international companies increase their profits by about 13% on average. Notable stocks include artificial intelligence (AI) chip maker Semiconductor manufacturing in Taiwan and the Danish healthcare titan Novo Nordisk.
Developed markets like Japan, the UK, Canada and France account for around 75% of the fund’s investments. Fast-growing emerging markets like Mexico and Saudi Arabia make up the remaining 25% of its portfolio. The Vanguard Total International Stock ETF offers you a clever combination of economic strength and long-term growth.
Best of all, the Vanguard Total International Stock ETF has a low expense ratio of just 0.08%. This represents a reduction of more than 90% compared to the average fees charged by comparable international funds.
Together, the Vanguard Total Stock Market ETF and the Vanguard Total International Stock ETF can form the foundation of your long-term investment portfolio. Owning both could give you a simple, inexpensive way to benefit from the performance of thousands of stocks around the world.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Vanguard Index Funds-Vanguard Total Stock Market ETF, and Vanguard Star Funds-Vanguard Total International Stock ETF. The Motley Fool recommends Novo Nordisk and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Mad Motley has a disclosure policy.