Two Vanguard Exchange-Traded Funds Worth Investing in for $100 and Long-term Holding
The Vanguard S&P 500 ETF, a popular investment choice among investors, offers a unique opportunity to benefit from significant trends such as artificial intelligence (AI) while diversifying your portfolio. This low-cost index fund tracks the performance of the top 500 publicly traded companies in the United States, providing a solid foundation for long-term capital appreciation.
One of the key advantages of the Vanguard S&P 500 ETF is its low expense ratio. At just 0.03% annually for the regular ETF and 0.07% for the Growth Index ETF, it is significantly cheaper than the industry average. For every $1,000 invested, you'll pay $0.30 or $0.70 annually in expenses, respectively.
The fund's impressive performance over the years is another reason for its popularity. Over the past 10 years, the fund's total returns are 340%, compared to the S&P 500's 261% increase. Moreover, the fund's total returns have doubled over the past five years, demonstrating impressive performance for a passively managed fund.
Legends like Warren Buffett endorse the Vanguard S&P 500 ETF, viewing it as a representation of America's economic progress. The fund's companies are large, publicly traded U.S.-based companies, offering a sense of security for investors.
The recommendation to buy the Vanguard S&P 500 Growth Index ETF now is based on its potential for long-term capital appreciation due to exposure to large-cap growth stocks and current market valuations offering a favorable entry point. The Growth Index ETF focuses on more than 200 top growth companies in the S&P 500, selected based on revenue and earnings growth, as well as share price momentum.
Some of the largest companies in the S&P 500 have been significant beneficiaries of advancements in artificial intelligence (AI). Top AI companies like Nvidia and Broadcom have experienced significant growth over the past five years. By investing in the Vanguard S&P 500 ETF, you are indirectly gaining exposure to these innovative companies.
A $100 investment in the Vanguard S&P 500 ETF serves as a great way to diversify your portfolio and track some of the most innovative companies in the U.S. simultaneously. When the market is experiencing big gains and the economy is on the right track, the Vanguard S&P 500 Growth Index ETF tends to benefit significantly.
In conclusion, the Vanguard S&P 500 ETF offers a cost-effective and diversified way to invest in the U.S. market, with potential exposure to trends like AI. Its impressive performance and the endorsement of financial legends make it an attractive choice for long-term investors.
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