ETFs
Do you want to retire rich? 2 ETFs to Buy Now and Hold Forever
This simple yet elegant investment strategy can help you build lasting wealth.
Too many people seem to want to make investing complicated. However, it doesn’t have to be that difficult. You can position yourself to make money in stock markets around the world with just two proven exchange-traded funds (AND F).
That’s right. Only two.
Read on to learn how to easily and profitably invest in over 10,000 global stocks.
A foundation to build your fortune
U.S. stocks as a group have generated annualized returns of around 10% for decades. THE Vanguard Total Stock Market ETF (VTI -0.15%) offers you a simple and inexpensive way to acquire this wealth-creating asset class.
This broadly diversified fund holds stakes in more than 3,700 U.S.-based companies. Its assets are weighted by market capitalizationso the titans love Microsoft, AppleAnd Nvidia are among the fund’s largest positions. However, the ETF also offers investors exposure to a wide range of mid- and small-cap stocks. The Vanguard Total Stock Market ETF offers you a convenient way to benefit from the relentless expansion of the American economy.
It’s important to note that Vanguard’s ETF has an ultra-low expense ratio of 0.03%. This equates to just $0.30 per year per $1,000 invested in the fund. This means that almost all of the ETF’s gains will go to you rather than the fund management team.
It may also be helpful to know that you have several options for purchasing this ETF (and others). One solution is to invest a large sum at once. This will give you more time to take advantage of market returns, which tends to work well for patient investors.
Another option is to invest small amounts over longer periods of time. A spread of costs in dollars This strategy can reduce your risk by spreading out your purchases.
A third option is to use a combination of these two strategies, such as investing an initial lump sum followed by regular purchases on the schedule that works best for you.
A lucrative aspect of international growth
Companies based outside of the United States can help you further diversify your portfolio and increase your returns. THE Vanguard Total International Equity ETF (VXUS -0.59%) is a great way to globalize your investments.
Fund shareholders gain instant ownership of more than 8,500 international stocks. Leader in semiconductors Semiconductor manufacturing in Taiwanweight loss drug manufacturer Novo Nordiskautomobile giant Toyotaand the electronics giant Samsung are among the ETF’s largest holdings.
The fund invests in developed and emerging markets in particular. Thus, it combines the security and reliability of established markets like Japan and Germany with the intriguing growth potential of developing economies like India and Indonesia.
Additionally, this international fund charges an annual fee of just 0.08%. This represents a considerable reduction compared to the average expense ratio of 0.89% of comparable ETFs.
When combined with the Vanguard Total Stock Market ETF, the Vanguard Total International Stock ETF can provide a powerful element of long-term growth to your portfolio. Owning both funds can allow you to benefit from the ever-expanding global economy.
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.