Vanguard S&P 500 ETF – VOO
VOO invests in stocks that are in the S&P 500 Index, which represents 500 of the largest U.S. companies. This fund’s goals are to track the S&P 500 Index’s return. Historically, the S&P 500 Index has been a proxy for the U.S. economy. This fund is great for any investment as it is appropriate for any long-term investor that wants to watch their money grow.
You will get you exposure to some of the largest and most well-known names in the U.S. VOO is weighted by market capitalization, the bigger the company, the bigger its allocation to the fund. Its top 10 holdings including the following, Apple, Microsoft, Amazon, Alphabet (Google), Facebook, Johnson & Johnson, Berkshire Hathaway, Procter & Gamble, Visa, and JPMorgan Chase. This fund gives you a lot of diversity so your portfolio can own different industries.
Since this fund is a passively managed ETF, its expense ratio (charges 0.03% per year if you own it) is very low which is perfect for long-term investors. As a result of all these characteristics, this fund makes a great long-term investment choice.
Vanguard Value ETF – VTV
VTV’s focus is to match the return of the US Large Capitalization Value Index. Value stocks are stocks that trade at cheap valuations relative to their growth potential. Additionally, value stocks tend to be a mature business, with steady growth and earnings. Value stocks are excellent beginner stocks due to the mature nature of the companies.
VTV will get you exposure to some of the largest and well-known names in the U.S. that have been around for years. Like VOO, this is weighted by market capitalization, with its top 10 holdings including the following, Johnson & Johnson, Berkshire Hathaway, Procter & Gamble, UnitedHealth Group, JPMorgan Chase, Verizon, Pfizer, Disney, AT&T, and Merck. This fund gives you exposure to a variety of sectors that will help diversify your portfolio.
Since this fund is also a passively managed ETF, its expense ratio (charges 0.04% per year if you own it) is very low which is perfect for long-term investors. As a result of all these characteristics, this fund makes a great long-term investment choice for the first investment.
Vanguard Total Stock Market ETF – VTI
VTI’s focus is to match the return of the US Total Market Index. This index includes company’s that are large, mid and small-capitalization stocks. This fund offers a balanced approached with a nice mix of value and growth companies.
You will get you exposure to some of the largest and most well-known names in the U.S. This fund is also weighted by market capitalization, with its top 10 holdings including the following, Apple, Microsoft, Amazon, Alphabet (Google), Facebook, Johnson & Johnson, Berkshire Hathaway, Procter & Gamble, Visa, and UnitedHealth Group. Diversity is important in your portfolio and VTI gives you a lot of diversity.
Since this fund is also a passively managed ETF, its expense ratio (charges 0.03% per year if you own it) is very low which is perfect for long-term investors. As a result of all these characteristics, this fund makes a great long-term investment choice to gain exposure to different sizes and types of companies.
These three funds are excellent for new investors. You will get diversity in your portfolio while owning companies you’ve always wanted.