Investment Opportunities: Top Vanguard ETFs Worth $1,000 Investment and Long-Term Holding
Vanguard ETFs: A Closer Look at Three Key Funds
In the world of investment, Vanguard has established itself as a trusted name, offering a variety of exchange-traded funds (ETFs) that cater to different investment strategies. Here, we delve into three of Vanguard's most popular ETFs: the Vanguard S&P 500 ETF (VOO), the Vanguard Growth ETF (VUG), and the Vanguard International High Dividend Yield ETF (VYMI).
Vanguard S&P 500 ETF (VOO)
The Vanguard S&P 500 ETF, with a current price of $592.72, is a core holding for building wealth. This ETF mirrors the S&P 500, giving instant ownership in 500 of the biggest U.S. companies. Over the past decade, it has produced average annual gains of 13.6%, and over the past five years, it has generated nearly 14% returns on average. The expense ratio for VOO stands at a modest 0.03%.
Vanguard Growth ETF (VUG)
The Vanguard Growth ETF, currently trading at $458.72, has been a strong performer, with average annual returns of 16.3% over the past decade. Nvidia, a tech giant, holds a 12.6% weighting in this ETF. The top five companies in VUG make up about 29% of the index, with Microsoft, Apple, Alphabet, and Amazon being the other prominent names. The expense ratio for VUG is 0.04%.
Vanguard International High Dividend Yield ETF (VYMI)
Founded on February 25, 2016, the Vanguard International High Dividend Yield ETF has been a solid choice for investors seeking income. With a current price of $84.07, VYMI has generated average annual returns of nearly 14% over the past five years. As of Aug. 26, this ETF is up nearly 27% this year. The day's range for VYMI is $83.86 to $84.13, and the 52-week range stands at $65.08 to $85.61.
Investors should note that the performance of these ETFs can fluctuate, and past performance is not a guarantee of future results. It's always essential to conduct thorough research and consider your investment goals before making any decisions.
In terms of trading volumes, the Vanguard S&P 500 ETF has seen 7,512,032 shares trade hands, while VYMI has traded 1,018,766 shares on the day.
A recent J.P. Morgan study found that since 1950, the S&P 500 hit a new high on about 7% of trading days, and nearly a third of those times it never traded below that level again. This underscores the potential long-term growth of these ETFs. However, it's important to remember that market conditions can change, and investors should always be prepared for volatility.
