Core Insights - Vanguard is the second-largest provider of ETFs, known for cost-effective and diversified investment options appealing to a wide range of investors [1] - Sector-focused funds, like those offered by Vanguard, provide sharper investment edges and lower risks compared to individual stock picking [2] Vanguard High Dividend Yield ETF (VYM) - VYM tracks the FTSE High Dividend Yield Index, including U.S. stocks with a history of above-average dividends, diversified across 530 stocks [3] - The ETF has averaged a 10.11% annual return over the past decade and 8.83% since its inception in 2006 [4] - Currently, VYM has a year-to-date gain of 2.24%, trading at $130.45, with a dividend yield of nearly 2.7%, more than double the S&P 500's average yield [6] - VYM has a low expense ratio of 0.06%, translating to an annual fee of $0.30 for every $500 invested [6] Vanguard Growth ETF (VUG) - VUG tracks the CRSP US Large Cap Growth Index, providing diversified exposure with a tech-heavy tilt, where top holdings include Apple, Microsoft, and NVIDIA, accounting for over 32% of total allocation [7] - Despite a strong historical track record, VUG has underperformed year-to-date with a 5.5% decline amid broader market sell-offs [9] - Over the past year, VUG has gained over 13%, driven by rallies in AI, cloud computing, and high-growth stocks, currently trading at $389 per share [10] - VUG has delivered a 15.09% annualized return over the past decade and maintains an average annual return of 11.56% since its inception in 2004 [12] - The ETF has a low expense ratio of 0.04%, resulting in an annual fee of $0.20 for every $500 invested [12]
2 Vanguard ETFs to consider buying in March