The United States is a very important country in the world, economically speaking, but it isn't the only country. Which is why you'll probably want to pair Vanguard Total Stock Market ETF with Vanguard Total International Stock ETF (NASDAQ: VXUS). Minus the nitty-gritty details, this exchange-traded fund buys all investable stocks from non-U.S. companies. The expense ratio is a reasonable 0.05%, noting that it is far more costly to operate across different countries than it is to just invest in the U.S. mar ...

Core Insights - U.S. stocks, particularly large-cap stocks, have shown strong performance over the past decade, with the S&P 500 index achieving a 15.3% annualized return, while the MSCI World ex-USA Index returned 8.4% [1] - In contrast, during the first nine months of the current year, the MSCI World Index outperformed the S&P 500, returning 25.3% compared to 14.8%, suggesting potential for international stocks to continue outpacing U.S. equities [2] ETF Analysis - The Vanguard Total International Stock ETF (VXUS) tracks the FTSE Global All Cap ex US Index, investing in 8,700 stocks with significant allocations in Europe (38%), Pacific (25.4%), and emerging markets (27.6%) as of September 30 [5] - The Vanguard Total International Stock ETF returned 26.6% for the first nine months of the year and has a 10-year annualized return of 8.3%, with a low expense ratio of 0.05% compared to the average of 0.85% for similar funds [6][7] - The Vanguard FTSE Europe ETF (VGK) aims to replicate the performance of the FTSE Developed Europe All Cap Index, including companies across various market caps in major European markets [10]

Core Insights - Investing can be simple and effective through well-chosen ETFs, which provide low-cost and diversified investment options [1][11] Group 1: Vanguard Total Stock Market ETF - The U.S. economy is experiencing impressive growth despite various challenges, driven by innovation in technologies like AI [3] - The Vanguard Total Stock Market ETF (VTI) offers exposure to over 3,500 U.S.-based companies, allowing investors to benefit from a significant portion of the U.S. economy [4] - The ETF includes top holdings from major companies such as Nvidia, Apple, Amazon, Broadcom, and Meta Platforms, providing reliable profit generation [5] - Vanguard's Total Stock Market ETF has a low expense ratio of 0.03%, costing only $0.30 per year for every $1,000 invested, with a minimum investment requirement of $1 [6] Group 2: Vanguard Total International Stock ETF - The Vanguard Total International Stock ETF (VXUS) enhances diversification and profit opportunities by including international stocks [7] - This ETF provides access to approximately 8,700 international stocks, including major companies like Taiwan Semiconductor Manufacturing, Alibaba, and Samsung Electronics [8] - The fund invests across developed and developing economies, balancing stability from mature markets with growth potential from emerging markets [9] - The Vanguard Total International Stock ETF also features a low expense ratio of 0.05%, equating to $0.50 in annual fees for each $1,000 invested [10] Group 3: Investment Strategy - Investing in both the Vanguard Total Stock Market ETF and the Vanguard Total International Stock ETF is a sensible strategy for generating long-term investment returns [11]

Group 1 - The United States is recognized as the world's most innovative and best-performing economy, with a stock market valued at approximately $62 trillion, significantly larger than that of any other country [1] - The ongoing artificial intelligence boom has led to substantial investments in the U.S. stock market, particularly in the "Magnificent Seven" stocks, which have shown impressive returns since early 2023 [1] Group 2 - Investment strategies should consider diversification, especially as U.S. stocks have outperformed international stocks for over 14 years, a trend that may soon reverse [4][7] - The Vanguard Total International Stock ETF (NASDAQ: VXUS) is highlighted as a strong investment option, providing exposure to over 8,600 international stocks, low fees, and effective diversification [6][8] Group 3 - Concerns are raised about the current valuation of the U.S. stock market, with some experts suggesting that the AI stock boom may resemble a market bubble, indicating a potential need for investors to explore international stock options [5]

Group 1 - The U.S. government is experiencing a partial shutdown due to political divides, which may pose risks to the economy if prolonged [1][7] - Despite the shutdown, the S&P 500 index has risen approximately 14% in 2025, indicating that the market has largely overlooked the political situation [3][7] - The iShares MSCI Poland ETF has significantly outperformed the S&P 500, rising 57% in 2025, highlighting strong performance in Polish stocks [4][7] Group 2 - Caution is advised against investing in ETFs that have already seen substantial gains, as entering late may not yield favorable results [5] - Investors should consider their knowledge of Poland's economy and stock market before making significant investments in country-specific ETFs [6] - More diversified international ETFs, such as the Vanguard Total International Stock ETF and the Vanguard FTSE Europe ETF, are also outperforming the S&P 500, offering broader exposure without the need for specialized knowledge [8]

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]

Group 1 - The article emphasizes that investing can be simplified through the use of exchange-traded funds (ETFs), which offer various focuses such as industries, company sizes, geographic regions, and investment types [1] - It suggests that for investors with $500 to invest, two Vanguard ETFs are recommended as complementary options for a stock portfolio [2] Group 2 - The Vanguard High Dividend Yield ETF (VYM) is highlighted as a strong option for generating income through dividends, which can provide stability during market downturns [4][8] - VYM currently offers a yield of just over 2.5%, which is more than double the S&P 500 average, and it holds 580 large-cap stocks across major sectors, with financials being the largest sector at 21.6% [5][6] - The article notes the importance of reinvesting dividends to acquire more shares, which can enhance long-term investment growth, despite a $500 investment yielding only $12.50 annually if not reinvested [7]

Core Insights - A long-term investment strategy is effective for building wealth with minimal risk and complexity [2] - Exchange-traded funds (ETFs) are highlighted as a means to achieve diversification and simplicity in investment [2][3] Vanguard ETFs Overview - Vanguard is recognized as a leading provider of investment funds, offering a diverse range of ETFs suitable for long-term portfolios [3] - Investors can start with a combination of five Vanguard ETFs for under $2,000, with a minimum investment of just $1 for each ETF [3] Individual ETF Summaries - **Vanguard S&P 500 ETF (VOO)**: Tracks 500 prominent U.S. companies, representing the U.S. economy, with an average annualized return of 8% over nearly a century [5][6] - **Vanguard Dividend Appreciation ETF (VIG)**: Focuses on large U.S. companies that consistently increase dividends, currently yielding just over 1.6% [7][9] - **Vanguard Information Technology ETF (VGT)**: Invests in the technology sector, with top holdings including Nvidia, Microsoft, and Apple, and a low expense ratio of 0.09% [10][11] - **Vanguard Real Estate ETF (VNQ)**: Comprises over 150 REITs, providing exposure to various property types with an adjusted effective yield of 2.8% [12][13] - **Vanguard Total International Stock ETF (VXUS)**: Offers ownership of over 8,600 non-U.S. companies, with a low expense ratio of 0.05%, enhancing global diversification [14][15]