ETFs

2 Unstoppable Vanguard ETFs to Invest in With $500 for Long-term Growth

Published October 5, 2024

For investors aiming for a robust investment portfolio, consistency and resilience are key attributes to consider. In the realm of Exchange Traded Funds (ETFs), certain products manage to stand out due to their proven track records and comprehensive market coverage. Among these, two Vanguard ETFs have been identified as particularly strong candidates for long-term investment: the Vanguard S&P 500 ETF VOO and the Vanguard Total Stock Market ETF VTI. By investing a mere $500 into these ETFs, investors can potentially secure a slice of growth that can endure market cycles and compound over time.

The Vanguard S&P 500 ETF VOO

The VOO aims to track the S&P 500, a leading benchmark for U.S. equities that represents 500 of the largest companies in the United States, covering approximately 80% of the available market capitalization. The ETF provides diversified exposure to the American large-cap equity segment, which has historically been a significant driver of long-term investment returns. The wide array of sectors covered by VOO makes it a compelling choice for investors looking to mirror the performance of major industry leaders.

The Vanguard Total Stock Market ETF VTI

In contrast, the VTI offers an even broader market exposure by including small- and mid-cap companies in addition to large-caps, effectively covering the entire U.S. equity market. It is an excellent option for those seeking comprehensive access to the U.S. stock universe, from growth stocks to value shares. By encapsulating the full spectrum of publicly traded U.S. stocks, VTI facilitates a kind of 'one-stop shopping' for investors who desire thorough market representation in a single investment.

Both the VOO and VTI feature low expense ratios, exemplifying Vanguard's commitment to affordable investing, and boast substantial assets under management, which contribute to their liquidity and stability. Their broad diversification inherently reduces company-specific risks, making them suitable for investors of any level of experience. With a $500 investment serving as an accessible entry point, these ETFs stand as a solid foundation to build or expand an investment portfolio with an eye toward longevity and dependability.

From their extensive coverage of the U.S. stock market to their structural resiliency, the VOO and VTI should not be overlooked by investors hoping to put their money into vehicles that can weather market uncertainties and deliver consistent returns. These two Vanguard ETFs could provide a valuable cornerstone to a forever hold strategy, reflecting the enduring qualities that mark them as unstoppable in the investment world.

Investment, Vanguard, ETFs