3 Vanguard ETFs to Buy With $500 and Hold Forever

Group 1 - The effectiveness of exchange-traded funds (ETFs) is highlighted as a rewarding investment option with lower risk compared to individual stocks [1] - Vanguard is recognized for creating high-quality ETFs, with specific recommendations for three ETFs to consider for investment [2] Group 2 - The Vanguard Growth ETF (NYSEMKT: VUG) has shown strong performance, focusing on companies with above-average revenue and earnings growth, particularly in the tech sector, which constitutes almost 63% of the ETF [4] - Since its inception in January 2004, VUG has returned 874%, significantly outperforming the S&P 500's 490% return, with a widening gap over the past decade due to the performance of major tech stocks [5] - A $500 investment in VUG, assuming a 10% annual return, could double to $1,000 in approximately 7.2 years [6] Group 3 - The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) serves as a complement to growth ETFs, focusing on companies with high forecasted dividends, excluding REITs [7] - VYM has averaged a 3% dividend yield over the past decade, providing a stable income stream [8] - The top five holdings in VYM include Broadcom (8.69%), JPMorgan Chase (4.06%), ExxonMobil (2.34%), Johnson & Johnson (2.32%), and Walmart (2.24%) [9]