close
close
2 ETFs to buy and keep forever in 2025

Exchange Traded Funds (ETFs) have been around for about three decades, but they have been increasingly popular in recent years. They act on the market, so they are much easier to invest than with conventional investment funds, and they are often equipped with low cost conditions instead of high administrative fees.

Vanguard is one of the top names in ETFs. All ETFs follow an index so that they are passively managed and delivered with some of the lowest fees they can find. The Vanguard S&P. 500 ETF (Voo -1.40%))) and the Vanguard S&P 500 Growth ETF (Voog -1.72%))) Are two excellent ETFs in which you can invest today. They now offer a value in the long term.

Everyone is a solid investment in themselves, but they also complement each other. Let’s take a closer look at both.

The full power of the market

It is a well -known aphorism that it is difficult to beat the market. To add another cliché, if you cannot beat you, join them. Here you invest in an index fund that is pursued S&P 500 Come in.

Many investors know about S&P GlobalThe Spiva Scorecard, which measures how much equity funds with Large cap fund compared to the S&P 500. The latest data for the first half of 2024 show that 57% of these funds were below average. This is not unusual.

If you believe in the US economy, it makes sense to invest in the S&P 500, which is a selection of the top 500 shares in the country. Even Warren Buffett, who has defeated the market over time with a large margin, recommends investing in this type of index fund. Berkshire HathawayHis holding company has two different ETFs that follow the index, even though they make up a small percentage of the company’s portfolio.

Person who holds money.

Image source: Getty Images.

The S&P 500 changes from time to time and switches off companies that do not correspond to the market capitalization threshold. If you invest in this type of instrument, you will receive the passive strength to expose yourself to the best stocks without having to choose yourself.

The Vanguard S&P 500 ETF is a good choice because it is equipped with the name Vanguard, and Vanguard has a long track record that leads to trust. It also has a low cost ratio of 0.03% compared to 0.77% for similar ETFs.

The S&P 500 rose by 27%last year, and investing in this ETF is a way to open up the value of the investment in the wider market.

The leading growth shares on the market

The Vanguard S&P 500 Growth ETF takes up the concept of investing in the brand. Instead of the full stocks in the S&P 500, this ETF invests in the S&P 500 growth indexThat is about 200 stocks. This is still a good amount of diversification, but with regard to growth it is the cream of the harvest.

This has led to strong results over time, and growth ETF has exceeded the regular ETF both at short notice and in the long term. It rose by 38% last year, and this has leaded to an even greater lead since the ETFs were created.

Voo Total Return Level diagram

Voo Total Return Level data from Ycharts.

If you had invested 10,000 US dollars in you 10 years ago, today you would have 6,880 US dollars more from the growth -Tf. It still has the same trustworthy names and low fees as the regular S&P 500 -ETF from Avantgarde with an effort of 0.1% compared to 0.94% for similar ETFs.

There is more risk because there are fewer shares and it focuses on growth. This could work against them if the market price is worth growing. However, this is not a ETF full of new, risky stocks. It is still anchored by the large, established companies that contain high up in the S&P 500 ApplePresent MicrosoftAnd Nvidia.

If I had to choose one of these Vanguard ETFs, I would choose the S&P 500 growth. However, if you can invest in both, you will receive even more security while using the growth -ENF for your money.

Jennifer SaiBil has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, Nvidia, S&P Global and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: Long January 2026 $ 395 calls at Microsoft and in short January 2026 $ 405 calls at Microsoft. The Motley Fool has a disclosure policy.

Leave a Reply

Your email address will not be published. Required fields are marked *