5 Key ETFs for a Successful Vanguard Portfolio

important point:

• It’s possible to build a million-dollar portfolio with diversified Vanguard ETFs.
• Vanguard offers ETFs with low expense ratios, facilitating efficient investing.
• ETFs cover everything from the S&P 500 to real estate, providing options for a variety of investment strategies.

Investing can be as elaborate or simple as you want. In other words, you do not need to choose individual stocks to make money in the stock market. Instead, investors can buy and hold exchange-traded funds, or ETFs, pools of stocks that trade under a single ticker symbol.

Vanguard is a common name you’ll see associated with exchange-traded funds. It is an investment company owned by the investors who own its various funds, meaning that Vanguard serves investors first and foremost.

You can certainly build a million-dollar portfolio from a diversified portfolio of Vanguard ETFs. Here are five things that should interest investors one way or the other.

Bonus: They all have expense ratios of 0.12% or less, meaning each holds a maximum of $0.12 per $100 invested.

Vanguard S&P 500 ETF

Expense Ratio: 0.03%

The greatest investor of all time, Warren Buffett, who manages a billion-dollar portfolio of more than 50 stocks for Berkshire Hathaway, owns only two ETFs. The Vanguard S&P 500 ETF (VOO) is one of them.

The proposal is simple: The S&P 500 has proven to be one of the best wealth building vehicles in America, It is an index of America’s 500 most prominent companies.

This ETF simulates the S&P 500, The index has risen and fallen over the years, but despite wars, recessions and pandemics, the S&P 500 recently closed above 5,000 for the first time.

Investors looking to bet on continued US economic growth can start with this ETF.

Vanguard Growth ETF

Expense ratio: 0.04%

Let’s say you want more growth than the broader market can offer. The Vanguard Growth ETF (VUG) may be what you are looking for. What does this ETF focus on? Large Cap Growth Stock,

This means the fund invests in growing companies that are still established enough to avoid the risks you see with smaller, less proven companies.

His largest holdings include the “Magnificent Seven” as well as other industry leaders such as payments company Visa and pharmaceutical leader Eli Lilly. The fund has outperformed the S&P 500 over the past five years, although nothing is guaranteed. Additionally, growth stocks can be more volatile, so investors should keep this in mind.

Vanguard High Dividend Yield ETF

Expense ratio: 0.06%

Some investors prefer to focus on investment income rather than price appreciation. If that’s you, consider the Vanguard High Dividend Yield ETF (VYM). offers to investors 3% dividend yield By focusing on companies that pay high (but sustainable) dividends.

The fund’s top holdings include high-yield stocks in sectors such as financials, consumer staples, industrials and healthcare. These include names like JPMorgan Chase, AbbVie and ExxonMobil.

Investors can sometimes fall into the yield trap, buying stocks of unhealthy companies that cannot maintain their high dividend yield and eventually reduce their payouts. This is an easy way to avoid this while diversifying your portfolio with a single ticker symbol.

Vanguard Dividend Appreciation ETF

Expense ratio: 0.06%

Dividend investing isn’t just for conservative investors. Stocks that pay and grow their dividends over time can produce great long-term results. This puts the Vanguard Dividend Appreciation ETF (VIG) on this list. The focus is on the background Companies That Can Continue to Pay You More Money Every Year,

The dividend yield is a bit low at 1.8%, but the fund’s consistent performance helps compensate for this. The fund’s average annual returns over the last one, three, five and ten years have been in double digits.

The ETF’s top holdings include a mix of technology, financial and consumer discretionary stocks, with the top 10 including names like Apple and Home Depot.

Vanguard Real Estate ETF

Expense ratio: 0.12%

The real estate industry is apparently as old as time. After all, people have owned land for centuries, and there is only a limited amount of it.

The Vanguard Real Estate ETF (VNQ) represents a Collection of Real Estate Investment Trusts (REITs), publicly traded companies that rent real estate. Think of them as professional landlords you can invest in.

The fund covers a variety of properties, including retail, office buildings, data centers, industrial properties and more. In total, the fund owns 161 shares and pays a dividend yield of 5.1%. Investors should remember that the economy can impact the real estate industry and the performance of this fund.

It also has the highest expense ratio in this list. As said, it is a An easy way to add real estate exposure to your portfolio,