3 Vanguard ETFs to Buy With $500 and Hold Forever

• VUG has outperformed the S&P 500 successful astir each twelvemonth since its inception.

• VYM has averaged a 3% dividend output implicit the past decade.

• VOO offers a large mode to get vulnerability to the broader U.S. economy.

• 10 stocks we similar amended than Vanguard Index Funds - Vanguard Growth ETF ›

When idiosyncratic asks maine astir stocks to put in, I ne'er shy distant from telling them astir however effectual exchange-traded funds (ETFs) tin be. They whitethorn not beryllium arsenic flashy oregon attention-grabbing arsenic idiosyncratic stocks, but they tin beryllium conscionable arsenic rewarding, with overmuch little risk.

Vanguard, successful particular, is simply a fiscal instauration that puts unneurotic immoderate large ETFs, with a fewer being successful my ain idiosyncratic portfolio. If you're looking to adhd a fewer to your portfolio, the pursuing 3 are worthy considering. Whether you're investing $500 successful each oregon $500 total, you apt won't regret adding these stocks to your portfolio.

The Vanguard Growth ETF (NYSEMKT: VUG) has been 1 of Vanguard's best-performing ETFs implicit the past decade, focusing connected companies with above-average gross and net maturation successful their respective industries. The maturation absorption has made the ETF tech-heavy (almost 63% of the ETF), but it inactive holds a bully fig of companies successful the user discretionary (17.6%), industrials (7.7%), and healthcare (5.9%) sectors.

If you're investing successful a maturation ETF, the 1 happening you're looking for is an ETF that tin routinely outperform the S&P 500, the banal market's go-to benchmark. Luckily, VUG has managed to bash conscionable that. Since its January 2004 inception, it has returned 874% compared to the S&P 500's 490%.

Over the past decade, the spread has widened, arsenic immoderate of the large tech stocks that are much heavy represented successful VUG person driven overmuch of the market's wide gains.

I wouldn't expect VUG to support 16% mean yearly returns, but it's well-equipped to proceed its market-beating tally implicit the agelong haul. Even if it maintained a 10% yearly average, a one-time $500 concern could treble to $1,000 successful astir 7.2 years.

A dividend-focused ETF similar the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is simply a bully complement to a maturation ETF, due to the fact that it typically holds companies from sectors that aren't arsenic heavy represented successful maturation ETFs. To beryllium included successful VYM, a institution indispensable person a precocious forecast dividend implicit the adjacent 12 months, excluding REITs.

The apical 5 holdings successful VYM are Broadcom (8.69%), JPMorgan Chase (4.06%), ExxonMobil (2.34%), Johnson & Johnson (2.32%), and Walmart (2.24%).