The 2 Best Vanguard Index Funds to Buy Now With $700 and Hold Forever

Core Insights - Index funds allow investors to create diversified portfolios without the need for extensive research on individual stocks, making it easier for both novice and experienced traders [2] - The Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Vanguard Total International Stock ETF (NASDAQ: VXUS) are recommended for investors with $700, providing approximately 85% exposure to U.S. stocks and 15% to international stocks [2] Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF tracks the performance of 500 large U.S. companies, representing 80% of domestic equities and 40% of global equities by market value, with a significant focus on technology stocks [5] - Over the last decade, the Vanguard S&P 500 ETF has returned 299%, compounding at an annual rate of 14.8%, outperforming every major international stock market over the past 20 years [7][8] - The ETF has a low expense ratio of 0.03%, costing shareholders just $3 annually for every $10,000 invested, making it one of the most cost-effective options available [9] Vanguard Total International Stock ETF - The Vanguard Total International Stock ETF has outperformed the S&P 500 in 2025, with a return that has doubled that of the S&P 500, suggesting potential for continued outperformance due to its cheaper valuation [5] Top Holdings in Vanguard S&P 500 ETF - The five largest holdings in the Vanguard S&P 500 ETF include Nvidia (8%), Microsoft (7.3%), Apple (5.7%), Amazon (4.1%), and Alphabet (3.7%) [6][10]