The Motley Fool·2025-11-29 12:17Core Insights - The stock market has seen significant growth driven by demand for artificial intelligence (AI) technologies, leading to investor optimism in tech companies [1] - However, there are concerns about inflated stock valuations, with uncertainty about whether the current trend represents a genuine revolution or a bubble [2] - Selecting individual stocks is becoming more difficult, prompting a shift towards exchange-traded funds (ETFs) as a safer investment option [3] Vanguard Dividend Appreciation Index Fund ETF - The Vanguard Dividend Appreciation Index Fund ETF has a low expense ratio of 0.05%, making it attractive for long-term investors, with only $5 in fees per year on a $10,000 investment [5] - This ETF offers an above-average yield of 1.6%, surpassing the S&P 500 average of 1.2% [5] - The fund holds over 330 stocks, focusing on companies with a history of increasing dividend payments, indicating strong financial health [6] - Major holdings include tech giants Broadcom, Microsoft, and Apple, which are expected to grow dividends due to their robust financials [7] - The ETF has a diversified portfolio with 29% in tech, 22% in financials, 16% in healthcare, and 11% in industrials, and has risen by 11% this year [8] Vanguard Growth Index Fund ETF - The Vanguard Growth Index Fund ETF features an even lower expense ratio of 0.04% and yields 0.4%, which can offset the ETF's fees [9] - This fund provides exposure to 160 growth stocks, with over 63% in the tech sector, and includes 18% in consumer discretionary and 8% in industrials [10] - Top holdings include Nvidia, Apple, and Microsoft, along with Eli Lilly, a leading drugmaker recently valued at $1 trillion [11] - The fund has increased by 16% this year, outperforming the S&P 500, which is up around 14% [13]