Investing in exchange-traded funds (ETFs) can be a smart way to grow your wealth over time. Vanguard stands out for its low fees and solid reputation. If you have $1,000 to invest, consider these 13 Vanguard ETFs.
For most investors, broad-market ETFs that track large stock indexes can be an effective way to ensure diversified exposure. The Vanguard S&P 500 ETF invests in 500 of America’s largest companies, offering a mix of growth potential and dividend income. The Vanguard Total Stock Market ETF includes all publicly traded companies in the United States, giving a broader market exposure.
For global exposure, the Vanguard Total World Stock ETF aims to encompass nearly all of the world’s stocks. If you are more interested in income through dividends, the Vanguard Dividend Appreciation ETF and the Vanguard High Dividend Yield ETF focus on companies with a strong track record of paying dividends, providing a steadier income stream. The Vanguard Long-Term Treasury ETF, a bond-focused ETF, includes income and is often recommended as part of a diversified portfolio.
Consider diverse Vanguard ETF options
It tends to be less volatile than stocks. The Vanguard Value ETF, Vanguard Utilities ETF, and Vanguard Consumer Staples ETF focus on sectors known for their stability and strong dividend yields.
These can be appealing in uncertain economic environments. Utilities and consumer staples, for example, include essential services and products that remain in demand even during economic downturns. For those looking at high-growth stocks, the Vanguard Information Technology ETF, Vanguard Growth ETF, Vanguard S&P 500 Growth ETF, and Vanguard Mega Cap Growth ETF contain many of today’s leading growth companies, such as Apple and Nvidia.
These companies often reinvest profits into further growth rather than paying significant dividends. You don’t need to invest in all these ETFs. Consider what you’re looking for in your portfolio and select the ETFs that best meet your needs.
Whether you start with one or a few, investing in ETFs can be a great way to build a diversified and potentially rewarding portfolio over time.