Core Viewpoint - The article emphasizes the benefits of investing in exchange-traded funds (ETFs) for diversification and exposure to top-performing companies, particularly for new investors seeking to minimize risk while achieving early gains [1][2]. Group 1: Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF is recommended for its ability to track the S&P 500 index, which includes the leading 500 companies on U.S. stock exchanges, providing exposure to top stocks [4][5]. - This ETF has a low expense ratio of 0.03%, which helps maximize overall returns for investors [5]. - Historically, the S&P 500 has averaged an annual return of around 10%, making it a low-risk investment option for long-term growth [6]. - The ETF has increased by approximately 14% this year and over 87% in the past five years, indicating strong performance and resilience in market downturns [8]. Group 2: iShares Russell 1000 Growth ETF - The iShares Russell 1000 Growth ETF focuses on growth stocks, targeting companies expected to grow at higher rates than the overall market, thus providing exposure to both established and emerging growth stocks [9]. - This fund carries slightly more risk due to its investment in both large-cap and mid-cap stocks, with significant holdings in major tech companies like Nvidia, Apple, and Microsoft, which make up around 36% of the portfolio [10]. - The expense ratio for this ETF is 0.18%, which is still relatively low compared to other funds [11]. - This year, the iShares Russell 1000 Growth ETF has risen by 15%, and over the past five years, it has more than doubled in value, accumulating gains of around 107% [11].
New to Investing? Build Your Portfolio Around These 2 Rock-Solid ETFs
The Motley Fool·2025-11-29 16:03