Core Insights - Vanguard offers a long-term investment approach with low fees, benefiting investors as part owners of the company [1][2] Group 1: Investment Strategy - The combination of Vanguard Total Market Index (VTI) and Vanguard Total Bond Market ETF (BND) creates a balanced 60/40 portfolio, ideal for long-term investors [2][11] - A 60/40 portfolio historically provides an attractive average annual return of 8.8% while significantly reducing volatility and risk [3] Group 2: Vanguard Total Stock Market ETF (VTI) - VTI tracks the CRSP US Total Market Index, providing broad exposure to over 3,500 U.S. stocks, with a focus on larger companies by market capitalization [4][6] - VTI has demonstrated solid historical returns, with a 10-year return of 14.7% and since inception return of 9.2% [5][7] Group 3: Vanguard Total Bond Market ETF (BND) - BND offers broad exposure to the U.S. investment-grade bond market, holding nearly 11,400 bonds with an average maturity of over eight years [8][9] - BND currently yields more than 4%, providing fixed income while helping to diversify and lower portfolio risk [9][10] - The fund has a 10-year return of 1.8% and since inception return of 3.1%, reflecting lower returns compared to stocks [10]
2 Vanguard ETFs to Buy With $100 and Hold Forever
The Motley Foolยท2025-10-13 05:02