Investing in ETFs has become a popular strategy for those looking to diversify their portfolios without the hassle of picking individual stocks. Vanguard, a leader in the ETF space, offers a variety of funds that can suit different investment strategies. Here, we explore three Vanguard ETFs to consider if you have $2000 to invest and a long-term horizon.
First on the list is the Vanguard S&P 500 ETF (NYSE:VOO). This ETF tracks the performance of the S&P 500 index, which includes 500 of the largest U.S. companies. It’s an excellent choice for investors looking to gain broad exposure to the U.S. stock market. The low expense ratio of this fund is one of its key attractions, allowing investors to keep more of their returns.
Another compelling option is the Vanguard Total Stock Market ETF (NYSE:VTI). Unlike VOO, which focuses on large-cap stocks, VTI offers exposure to the entire U.S. stock market, including small- and mid-cap companies. This broad diversification can help mitigate risks associated with investing in just one segment of the market.
Lastly, the Vanguard FTSE Developed Markets ETF (NYSE:VEA) is ideal for those wanting international exposure. This ETF focuses on stocks from developed markets outside of the United States, such as Europe and Japan. Investing in VEA can provide a hedge against U.S. market volatility and currency fluctuations.
These ETFs not only offer diversification but also come with low expense ratios, making them cost-effective options for long-term investors. By investing in these funds, you can build a solid foundation for your investment portfolio, potentially reaping substantial rewards over time.
Footnotes:
- The S&P 500 index includes 500 of the largest U.S. companies. Source.
- The Vanguard Total Stock Market ETF provides exposure to the entire U.S. stock market. Source.
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