Core Insights - The article highlights Alan Brochstein's extensive experience in the investment industry, particularly his focus on the cannabis sector since 2014 [1] - It emphasizes the importance of ETFs in enabling diversified investment portfolios for both individual and institutional investors [1] - The article mentions the establishment of a 79-ETF Focus List by Alan, which includes a variety of ETFs, both popular and lesser-known [1] Group 1: Professional Background - Alan Brochstein has been contributing to Seeking Alpha since 2007 and has a background in both sell-side and buy-side roles in fixed-income and equities [1] - He founded AB Analytical Services in 2007 to provide independent consulting to registered investment advisors [1] - Alan has been a pioneer in the cannabis investment space, launching 420 Investor in 2013, a subscription service focused on cannabis stocks [1] Group 2: ETF Focus - Alan has been writing extensively about ETFs since 2025, aiming to help investors understand the ETF landscape [1] - The 79-ETF Focus List maintained by Alan includes a mix of large, popular ETFs and those that are less widely followed but noteworthy [1] - A model portfolio was created by Alan as of year-end 2025 to assist investors in navigating their ETF investments [1]

As of market close on Feb. 17, the S&P 500 is flat on the year. At first glance, you may think that stocks are going nowhere, but that couldn't be further from the truth. Mega cap growth stocks have been falling, while plenty of other stocks are soaring -- especially in sectors that don't make up a large share of the index -- like consumer staples, energy, industrials, and materials. In fact, if you were to weight each component in the S&P 500 evenly instead of by market capitalization, the index is actua ...

Core Insights - From 2023 to the end of 2025, portfolios heavily invested in growth stocks, particularly in tech and AI, likely outperformed major indexes like the S&P 500, but 2026 is expected to be different [1] - Tech-heavy sectors, including tech and communications, have seen a decline in value year to date, with all "Magnificent Seven" stocks experiencing losses [1] Group 1: ETFs Performance - Growth-heavy exchange-traded funds (ETFs) are under pressure due to the decline in tech stocks [2] - The Vanguard Growth ETF (NYSEMKT: VUG) has a low expense ratio of 0.04% and has historically performed similarly to the Nasdaq-100, but it includes growth stocks not present in the Nasdaq-100 [4][5] - The Vanguard Growth ETF is down 6.1% year to date, making it a solid buy for low-cost exposure to a basket of 151 stocks [7] Group 2: Vanguard Mega Cap Growth ETF - The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) is a concentrated version of the Vanguard Growth ETF, with 60 holdings and a significant weighting in the largest growth stocks [8] - The ETF has a 59.4% weighting in the Magnificent Seven, and with additional stocks like Broadcom and Eli Lilly, 68.4% of the ETF is concentrated in just 10 stocks [8] - The Vanguard Mega Cap Growth ETF has declined slightly more than the Vanguard Growth ETF year to date due to the falling Magnificent Seven stocks [9]

Core Viewpoint - Vanguard has announced a fee reduction on 53 of its mutual funds and ETFs, reinforcing its commitment to shareholder-friendly policies by minimizing management fees [1]. Group 1: Fee Reductions - The expense ratios for several major Vanguard ETFs have been reduced, including the Vanguard Dividend Appreciation ETF (VIG), Vanguard High Dividend Yield ETF (VYM), Vanguard Growth ETF, Vanguard Value ETF, and Vanguard Large Cap ETF [2]. - A detailed list of expense ratio changes shows reductions across various funds, with some notable decreases such as VIG from 0.05% to 0.04% and VYM from 0.06% to 0.04% [4]. - The Vanguard International High Dividend Yield ETF saw its expense ratio cut by more than half to 0.07%, while the Vanguard 0-3 Month Treasury Bill ETF, launched only a year ago, is also experiencing a fee reduction [5]. Group 2: Impact of Changes - Many of the changes are minimal, often a single basis point, indicating that the already low-cost funds are becoming even cheaper [5]. - While these fee reductions are not expected to lead to major performance changes, they represent a positive step for shareholders, aligning with Vanguard's long-standing focus on cost efficiency [5].

Core Insights - Investor enthusiasm for AI stocks has significantly influenced stock market gains in 2025, but concerns about a potential AI crash are rising among global investors, with 57% citing "tech valuations plunge/AI enthusiasm wanes" as the biggest risk to market stability in 2026 [2][6] - The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) has seen a 29% increase over the past year, outperforming the S&P 500 index, which rose by 13.6%. However, after reaching a peak of $53.75 on November 3, the ETF experienced an 11% decline by November 21 and remained approximately 2% below its high as of January 22 [2][6] Investment Strategies - To mitigate risks associated with a potential AI downturn, investors are advised to consider value stock ETFs, such as the Vanguard Value ETF (NYSEMKT: VTV), which includes 312 stocks with only 7.8% in technology, providing diversification [5][6] - The Vanguard Value ETF's top holdings include JPMorgan Chase, Berkshire Hathaway, ExxonMobil, Johnson & Johnson, and Walmart, none of which are heavily invested in AI. The ETF has a low expense ratio of 0.04%, a 9.9% earnings growth rate, and a price-to-earnings ratio of about 21, lower than the S&P 500's P/E ratio of 31 [6][7] - Another strategy to reduce exposure to AI risks is investing in small-cap stock ETFs, which typically have limited exposure to AI and are valued at lower multiples compared to major tech stocks, potentially offering opportunities for future growth [8]

Core Insights - The article highlights 11 Vanguard ETFs that provide attractive dividend yields and growth potential, emphasizing the benefits of investing in ETFs due to their lower expense ratios compared to mutual funds [1][2][3] Investment Opportunities - Vanguard S&P 500 ETF (VOO) offers a dividend yield of 1.13% with a 5-year average annual return of 14.55% and a 10-year average of 15.61% [5] - Vanguard Total Stock Market ETF (VTI) has a dividend yield of 1.12% and a 5-year average annual return of 13.12% [5] - Vanguard Total World Stock ETF (VT) provides a higher dividend yield of 1.83% and a 5-year average annual return of 11.10% [5] - Vanguard Total Bond Market ETF (BND) offers a significant dividend yield of 3.86%, although it has a negative 5-year average annual return of -0.17% [5] - Vanguard Dividend Appreciation ETF (VIG) yields 1.62% with a 5-year average annual return of 11.69% [5] - Vanguard High Dividend Yield Index Fund ETF (VYM) has a dividend yield of 2.44% and a 5-year average annual return of 12.48% [5] - Vanguard International High Dividend Yield Index Fund ETF (VYMI) features a dividend yield of 3.69% with a 5-year average annual return of 12.49% [5] - Vanguard Real Estate ETF (VNQ) offers a dividend yield of 3.92% with a 5-year average annual return of 5.59% [5] - Vanguard Value ETF (VTV) has a dividend yield of 2.05% and a 5-year average annual return of 12.56% [5] - Vanguard S&P 500 Growth Index Fund ETF (VOOG) yields 0.49% with a 5-year average annual return of 15.33% [5] - Vanguard Information Technology ETF (VGT) has a lower dividend yield of 0.40% but boasts a strong 5-year average annual return of 17.49% [5] Investment Strategy - The article encourages investors to consider a diversified approach by investing in multiple ETFs to balance growth and income [16] - It emphasizes the importance of understanding how money grows over time, illustrating potential future values based on different annual investment amounts and growth rates [4]

Group 1 - The tech sector has been the best-performing sector in the S&P 500 for 2023 and 2025, and the second best in 2024, but historical trends suggest this outperformance may not last forever [2] - The price/earnings ratio of the S&P 500 is currently at 31, indicating that stock prices are becoming expensive, which may lead investors to seek better opportunities elsewhere in the market [2] - The U.S. economy is expected to experience positive but slower growth in 2026, with the annualized GDP growth rate in Q3 2025 at 4.3%, significantly above the 30-year average of 2.5% [4] Group 2 - A growth slowdown, rather than a bear market or recession, could lead to better performance for value stocks compared to growth stocks, as current economic growth rates are above trend [5] - The Vanguard Value ETF is positioned to potentially outperform in 2026 due to the anticipated rotation from growth stocks to value stocks amid slower economic growth [7] - The current market shows a concerning lack of breadth, with the top 10 positions in the S&P 500 accounting for approximately 40% of the index, and the tech sector making up nearly 35%, both figures near all-time highs [8]

Core Insights - The Vanguard Value ETF is highlighted as a strong investment option for those looking to potentially earn $1 million or more in the stock market with minimal effort [2][4] - Value ETFs are characterized by stocks deemed undervalued, making them suitable for risk-averse investors due to their solid fundamentals and stability compared to growth ETFs [3] Investment Strategy - The Vanguard Value ETF includes 315 large-cap stocks across various sectors, providing significant diversification and reducing risk from sector-specific downturns [5] - The ETF features a low expense ratio of 0.04%, which can lead to substantial savings over time compared to other ETFs with higher fees [6] Historical Performance - Since its inception in 2004, the Vanguard Value ETF has achieved an average annual return of 9.09%, with projections indicating the amount needed to invest monthly to reach $1 million based on different investment horizons [7][8] - Investment amounts required to reach $1 million vary based on the number of years invested, with examples showing that investing $1,000 per month for 25 years could yield over $1 million [8] Long-term Perspective - The future performance of the ETF is uncertain, and value stocks may take time to realize their potential, emphasizing the importance of a long-term investment strategy [9] - Starting investments sooner can significantly reduce the monthly contribution needed to achieve financial goals, highlighting the benefits of compounding over time [10] Conclusion - Investing in a value ETF like the Vanguard Value ETF offers exposure to undervalued stocks with diversification benefits, potentially leading to substantial wealth accumulation over decades with consistent, modest investments [11]

Core Insights - The article compares two ETFs: State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and Vanguard Value ETF (VTV), highlighting their differing investment strategies and performance metrics [4][5]. Group 1: ETF Characteristics - SPTM offers broader exposure with 1,510 U.S. stocks across all market capitalizations, focusing heavily on technology (34%), financial services (13%), and consumer cyclicals (11%) [1]. - VTV targets large-cap value stocks, with significant allocations in financial services (25%), healthcare (15%), and industrials (13%), holding 331 positions [2]. - SPTM has a growth-oriented tilt, resulting in higher recent returns but also larger drawdowns compared to VTV, which is more defensive and income-focused [5][6]. Group 2: Performance Metrics - Since 2004, SPTM has delivered an annual total return growth of 10.2%, while VTV has achieved 9.3%. Over the last decade, SPTM's growth was 14.5% compared to VTV's 11.8% [6]. - Both ETFs slightly lagged behind the S&P 500, which rose 14.7% annually over the same period [6]. - VTV offers a higher dividend yield of 2.1%, one percentage point more than SPTM, appealing to income-focused investors [3][5]. Group 3: Investment Considerations - SPTM includes 1,000 additional stocks compared to the S&P 500, providing better market breadth, while its allocation to the "Magnificent Seven" is lower at 34% compared to 38% for the S&P 500 [7]. - VTV avoids many high-profile tech stocks, focusing instead on steady dividend-paying stocks, which may be appealing in a volatile market [8]. - The choice between SPTM and VTV ultimately depends on individual investor preferences, with VTV being favored for its income potential and lower risk profile [9].

Core Insights - The S&P 500 has shown significant growth, with an increase of over 15% in 2025, following gains of over 20% in both 2024 and 2023, compared to its historical average annual return of 9% to 10% [1][2] Group 1: ETF Performance and Characteristics - The Vanguard Total Stock Market ETF (VTI) is the largest ETF globally, surpassing $2 trillion in net assets, and includes thousands of companies not in the S&P 500, representing about 16% of the total U.S. stock market [5][6] - The Total Stock Market ETF is expected to perform similarly to the S&P 500 over the long term but may be more suitable for investors wanting full market participation [6][7] - The Vanguard Value ETF focuses on value stocks, which tend to perform better during market sell-offs, with major holdings in companies like JPMorgan Chase and Berkshire Hathaway, and offers a yield of 2.1% with a P/E ratio of 21.2 [9][10] - The Vanguard Consumer Staples ETF yields 2.2% and includes major companies like Walmart and Coca-Cola, which are expected to perform well during economic downturns due to their strong supply chains [12][13] Group 2: Market Trends and Investor Behavior - The S&P 500's rapid rise is attributed to strong earnings growth from key companies, including Nvidia, which, along with 19 others, constitutes about half of the index [2] - The consumer staples sector has underperformed in 2025, facing challenges from inflation and reduced consumer spending, but is expected to hold up during market sell-offs [11][13] - Investors are encouraged to use ETFs as part of a diversified portfolio, allowing for exposure to different sectors while managing risk [14]