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3 Vanguard ETFs to Buy With $1,500 and Hold Forever

From Yahoo! Finance

3 Vanguard ETFs to Buy With $1,500 and Hold Forever

Exchange-traded funds (ETFs) can make life easy by simplifying the investment process. ETFs are buckets of individual companies traded under one ticker symbol, offering instant portfolio diversification. Some of them follow stock market indexes, while others reflect a specific theme or strategy.

Vanguard is one of the world's largest investment companies. It's a trusted name because shareholders don't own the company; the investors who own its funds do. So, Vanguard is an excellent choice if you're looking for exchange-traded funds to buy and hold forever.

Here are three Vanguard ETFs suited for different types of investors. Consider buying and holding them indefinitely; they would make a strong foundation for any long-term portfolio. You can buy a share of all three for under $1,500 or stick to the ETFs that resonate with your investing style.

World-renowned investor Warren Buffett is arguably one of the greatest stock pickers of all time. But he does own one Vanguard ETF: the Vanguard S&P 500 ETF (NYSEMKT: VOO).

It follows the S&P 500, a market-cap-weighted index of 500 of America's most prominent corporations. It's probably the most famous stock market index and a common fill-in when investors refer to the U.S. market. You get a mix of investment exposure to almost every industry, including the "Magnificent Seven" technology stocks.

The S&P 500 has proved to be a remarkably effective wealth generator. Since its modern format began trading in the 1950s, it has turned $100 into over $36,000 -- without factoring in dividends. The index fluctuates in any given year, but it has averaged about 8% annualized total returns over the past five decades.

You can't directly invest in the S&P 500, so consider Vanguard's S&P 500 ETF instead.

Some investors might want more investment upside, even if it means more volatility. The Vanguard Growth ETF (NYSEMKT: VUG) could be what you're looking for. It follows the CRSP US Large Cap Growth Index, a basket of 181 large-cap growth stocks.

The fund leans more heavily into the Magnificent Seven than the S&P 500, with approximately 52% of its funds invested in this group. The other half is spread across 174 stocks, giving investors some built-in diversification.

Buying and holding this fund has worked well over the years. Growth markets like artificial intelligence, cloud computing, semiconductors, and e-commerce should continue to drive performance in big technology, which bodes well for this ETF and its investors. Its 0.04% expense ratio is far lower than many other growth-focused ETFs.

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