Two ETFs Worth Investing in by 2025, Potentially Securing Your Financial Future Long-Term
Investing in the stock market doesn't require a rocket science degree. In fact, you can create a solid foundation for your portfolio with just two Exchange-Traded Funds (ETFs). Let's dive into two low-cost options that could help you profit from the global economy's long-term growth.
Kickstart your portfolio with a U.S. stock ETF
The U.S. economy remains an investment powerhouse, boasting strong corporate standards, a focus on innovation, and impressive historical returns. Enter the Vanguard Total Stock Market ETF (VTI). With a market value-weighted approach, this ETF invests in over 3,600 U.S.-based companies, including top names like Apple, Microsoft, Nvidia, Tesla, and Berkshire Hathaway.
However, VTI doesn't just stop at the big players. It also gives you exposure to mid-cap and small-cap stocks, providing a broad range of U.S. investment opportunities. Plus, Vanguard's commitment to affordable fees means you'll pay a minuscule annual expense ratio of 0.03%, and the fund boasts a $1 minimum investment.
Expand your horizons with an international ETF
Incorporating an ETF that invests outside the U.S. can broaden your profit potential. This not only diversifies your portfolio but also reduces your risks. The Vanguard Total International Stock ETF (VXUS) is your ticket to global growth, with positions in over 8,500 international companies.
VXUS offers exposure to developed markets like the U.K. and Japan as well as emerging markets, providing a balanced mix of safety and growth opportunities. Its annual expense ratio of 0.05% ensures that the majority of its gains are passed on to investors.
In summary, the VTI and VXUS ETFs offer low-cost, easy access to a well-diversified collection of U.S. and international stocks. By focusing on these two ETFs, you'll be well on your way to building a strong and balanced investment portfolio.
Starting your finance journey in the stock market doesn't require specialized knowledge. You can initiate a robust portfolio with just two Exchange-Traded Funds (ETFs), such as the Vanguard Total Stock Market ETF (VTI). This ETF, with an annual expense ratio of 0.03%, invests in over 3,600 U.S.-based companies, including tech giants like Apple and Microsoft, and even provides exposure to smaller companies, protecting you from missing potential growth opportunities.
Investing in the Vanguard Total International Stock ETF (VXUS) can further diversify your portfolio and reduce risks. With a minimum investment and an annual expense ratio of 0.05%, this ETF offers positions in over 8,500 international companies, mixing developed and emerging markets to provide a balance of safety and growth opportunities.
By integrating the VTI and VXUS ETFs into your finance plan, you're committing to a low-cost, straightforward approach to investing in a broad and diversified range of U.S. and international stocks. This strategic approach will help ensure your portfolio is steady and prepared to weather market fluctuations, giving you the peace of mind to profit from the global economy's long-term growth.
As you begin your journey in the world of finance, remember that a strong portfolio typically requires a balanced approach to investing, ensuring that you diversify your assets and give yourself the best chances of achieving your financial goals.
