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Yahoo
10-07-2025
- Business
- Yahoo
The Best Vanguard ETF to Invest $500 In Right Now
Several top Vanguard ETFs aren't the best picks right now because of market dynamics. However, the Vanguard Utilities ETF doesn't face some of the issues that many other Vanguard funds do. This Vanguard ETF should hold up well if the stock market tumbles again and pays a solid dividend. 10 stocks we like better than Vanguard Utilities ETF › The more choices you have, the harder it can be to make a selection. That's true with picking where to go out to eat. And it's definitely the case with choosing an exchange-traded fund (ETF) to buy. There are more than 12,000 ETFs, according to J.P. Morgan. Even if you limit yourself to one fund manager, you'll still be overwhelmed with options. For example, Vanguard offers 94 ETFs. What is the best Vanguard ETF to invest $500 in right now? The decision isn't an easy one. Ordinarily, my default choice for the best Vanguard ETF to buy would be the Vanguard S&P 500 ETF (NYSEMKT: VOO). This fund has performed well over the long term. It offers investors an opportunity to buy shares of 500 of the largest and most successful U.S. companies. However, I'm leery of this ETF's valuation. The Vanguard S&P 500 ETF's price-to-earnings ratio is a sky-high 26. The S&P 500 Shiller CAPE ratio, a widely followed valuation metric for the S&P 500 (SNPINDEX: ^GSPC) index, is near its third-highest level ever. This valuation worry crosses several growth-oriented Vanguard funds off the list, too, including the Vanguard Russell 1000 Growth ETF (NASDAQ: VONG). Some might be tempted to go with the best-performing Vanguard ETF this year -- the Vanguard FTSE Europe ETF (NYSEMKT: VGK). This European stock fund has soared around 24% year to date. My concern, though, is that the Trump administration's tariffs could negatively affect European stocks and weigh on this Vanguard ETF. If I were confident that rate cuts were on the way that could send bond prices higher, I'd probably rank a Vanguard fund such as the Vanguard Total Bond Market ETF (NASDAQ: BND) high on the list. However, tariffs could present a problem on this front as well if they cause inflation to rise. Is there any Vanguard ETF that doesn't cause jitters for me? Actually, yes. My pick for the best Vanguard ETF to invest $500 in right now is the Vanguard Utilities ETF (NYSEMKT: VPU). This Vanguard fund owns 69 utility stocks. Over 61% of its portfolio is invested in electric utilities. Nearly 25% is invested in multi-utilities (companies that provide multiple types of utility services). The remainder of the Vanguard Utilities ETF's portfolio is spread across gas utilities, independent power producers, renewable power companies, and water utilities. While this Vanguard ETF isn't exactly cheap, its valuation doesn't concern me too much. The fund trades at roughly 20.8 times earnings. Tariffs aren't a major worry with utilities, either. Neither is inflation, since utilities can usually secure regulatory approval to pass higher costs along to their customers. For investors who want to shift into a defensive posture because of the significant uncertainties in the air right now, the Vanguard Utilities ETF is a good option. Utility stocks are widely viewed as safe havens because their cash flows are stable. It doesn't hurt that many of them pay solid dividends. The Vanguard Utilities ETF's dividend yield currently stands at 2.83%. To add icing on top, many of the stocks owned by this Vanguard ETF should have pretty good growth prospects thanks to artificial intelligence (AI). The data centers that host AI models require tremendous amounts of electricity. Will the Vanguard Utilities ETF be the best Vanguard ETF to invest $500 in a few years from now? Maybe, but maybe not. This fund isn't anywhere close to being the best-performing Vanguard ETF over the long term. That honor belongs to the Vanguard Russell 1000 Growth ETF. The Vanguard S&P 500 ETF comes in a respectable third place. But different funds are better picks at different times. With the current market dynamics, I can't think of a better Vanguard ETF to buy than the Vanguard Utilities ETF. Before you buy stock in Vanguard Utilities ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Utilities ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $980,723!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase, Vanguard S&P 500 ETF, and Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy. The Best Vanguard ETF to Invest $500 In Right Now was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
03-05-2025
- Business
- Globe and Mail
These 3 Vanguard ETFs Have Plunged Over 10% in 2025 but Remain Magnificent Picks for Long-Term Investors
Stock market volatility can be disconcerting, especially for newer investors. However, volatility is the short-term price you pay to reap gains over the long run. One way to reduce volatility to some extent is to invest in exchange-traded funds (ETFs) that own a broad basket of stocks. Even ETFs can decline sharply during market sell-offs, though. The good news is that the pullbacks can present excellent buying opportunities. These three Vanguard ETFs have plunged over 10% in 2025. But they're still magnificent picks for long-term investors. 1. Vanguard Small-Cap ETF As of this writing, shares of the Vanguard Small-Cap ETF (NYSEMKT: VB) have plummeted roughly 15% below the peak earlier in 2025. This decline is an improvement from an even steeper plunge in the first week of April following President Donald Trump's announcement of reciprocal tariffs on most countries. The Vanguard Small-Cap ETF owns 1,357 small-cap stocks. These smaller stocks are often more volatile than large-cap stocks. And they can be hit especially hard during economic downturns. Increasing fears that the U.S. economy could slip into recession have weighed heavily on this Vanguard ETF. However, the Vanguard Small-Cap ETF has at least one great thing going for it: a relatively low valuation. The average trailing-12-month price-to-earnings ratio for the stocks in its portfolio is 18.6, well below the earnings multiple of nearly 24.5 for the S&P 500. Perhaps more compelling, though, is that small-cap stocks have historically outperformed large-cap stocks over the long term. That hasn't been the case in recent years, but don't be surprised if small-cap stocks come back sooner or later with a vengeance. If and when that happens, the Vanguard Small-Cap ETF could make patient investors a lot of money. 2. Vanguard Russell 1000 Growth ETF The Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) has tumbled 13% below its high set earlier in 2025. At one point last month, the ETF was down more than 23% but subsequently rebounded. This Vanguard ETF attempts to track the Russell 1000 Growth Index. The index includes growth stocks in the Russell 1000, which is made up of the top 1,000 U.S. companies based on market cap. The Vanguard Russell 1000 Growth ETF owns 394 stocks, with top holdings including Apple, Microsoft, Nvidia, Amazon, and Meta Platforms. These five stocks alone comprise roughly 42.5% of the ETF's portfolio. When the stocks of these and other giant companies falter, the Vanguard Russell 1000 Growth ETF does, too. The good news, though, is that artificial intelligence (AI) is likely to provide a huge tailwind for Apple, Microsoft, Nvidia, Amazon, Meta, and other major stocks owned by this Vanguard ETF for a long time to come. It shouldn't be surprising that the Vanguard Russell 1000 Growth ETF ranks as Vanguard's top-performing ETF over the long run. Since its inception in 2010, this ETF has delivered an average annual return of around 15.8%. While there's no guarantee it can keep that level of returns coming, I expect the Vanguard Russell 1000 Growth ETF will continue its winning ways over the next decade and beyond. 3. Vanguard Mega Cap Growth ETF Shares of the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) are down close to 13% below the previous peak. The performance of this Vanguard ETF almost exactly mirrors that of the Vanguard Russell 1000 Growth ETF. There's a simple explanation for the similarity between these two ETFs. Their portfolios look a lot alike. The Vanguard Mega Cap Growth ETF's top five holdings are the same as the Vanguard Russell 1000 Growth ETF's. The main difference between the two funds is that the Vanguard Mega Cap Growth ETF owns only 69 stocks with a median market cap of $1.5 trillion. Rising adoption of AI should benefit many of this Vanguard ETF's stocks over the long run. The fund has been a big winner since its inception in 2007, delivering an average annual return of roughly 12.5%. I predict investors who buy and hold this Vanguard fund will be glad they did 10 years from now. Should you invest $1,000 in Vanguard World Fund - Vanguard Mega Cap Growth ETF right now? Before you buy stock in Vanguard World Fund - Vanguard Mega Cap Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard World Fund - Vanguard Mega Cap Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $611,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $684,068!* Now, it's worth noting Stock Advisor 's total average return is889% — a market-crushing outperformance compared to162%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 28, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Small-Cap ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
19-03-2025
- Business
- Yahoo
Prediction: Buying This Vanguard ETF Today Will Set You Up for Life
What's an 11-letter word that begins with "O" and aptly describes a stock market pullback like the one we're seeing right now? It's easy: The word is "opportunity." Forward-thinking investors should view the current market volatility as a great opportunity. And you don't even have to be a fantastic stock-picker; you can instead invest in an exchange-traded fund (ETF). But which ETF should you select? I predict buying one Vanguard ETF today will set you up for life. The Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) ranks as the top performer among the 90 ETFs that Vanguard markets. Since its inception in September 2010, this fund has delivered an average annual return of 16.59% (as of Feb. 28, 2025). The ETF generated the second-highest gains over the last 10 years in the Vanguard family. It's also fourth over the last five years. Granted, the Vanguard Russell 100 Growth ETF hasn't fared so well in recent weeks. It's down nearly 8% year to date and has dropped roughly 11% below its peak set in late 2024. However, I believe this pullback is only temporary and therefore gives investors an excellent chance to buy on the dip. By the way, such opportunities typically haven't lasted very long in the past. This is the eighth time since its launch nearly 15 years ago that the Vanguard Russell 1000 Growth ETF has fallen by 10% or more from its previous high. In all but one of those instances, the ETF roared back quickly. Of course, past performance isn't necessarily indicative of future returns. So why do I think buying the Vanguard Russell 1000 Growth ETF today could set you up for life? The answer lies in the underlying premise of the ETF. The Vanguard Russell 1000 Growth ETF attempts to track the performance of the Russell 1000 Growth Index. This index consists of growth stocks in the Russell 1000, which includes the 1,000 largest stocks that trade on U.S. exchanges based on market cap. This Vanguard ETF currently owns 395 stocks. Its top holdings include Apple, Microsoft, Nvidia, Amazon, and Meta Platforms. These five stocks alone make up around 44% of the fund's portfolio. Throw in both classes of Google parent Alphabet's shares and the total grows to over 50%. I'm confident that all of the aforementioned stocks have tremendous growth prospects despite their recent declines. Every company on the list should enjoy a significant tailwind from artificial intelligence (AI) over the next decade and beyond. What happens if large-cap stocks other than these current giants perform better? Because the Vanguard Russell 1000 Growth ETF is weighted by market cap, its portfolio will be regularly adjusted to invest more heavily in the shares of companies that are growing and invest less in those that are shrinking. That's a big plus of owning an index-based ETF. Another advantage of Vanguard funds, in particular, is that fees won't eat into your gains very much. The annual expense ratio of the Vanguard Russell 1000 Growth ETF is a low 0.07%. The average expense ratio of similar funds is 0.94%. Many predictions turn out to be wrong. Mine could, too. Although I think the Vanguard Russell 1000 Growth ETF should be a big winner over the long run, there's always a risk with investing in any stock or fund. I'd be remiss if I didn't point out that how much you invest will make a big difference. Buying a handful of shares of the Vanguard Russell 1000 Growth ETF won't be enough to set you up for life. The amount you need to invest to achieve this goal will vary from person to person. Also, I'm not predicting that buying this Vanguard ETF today and holding two or three years will set you up for life. I have the long term in mind with my prediction. You should think long-term, too. It's possible, and perhaps even likely, that growth stocks will underperform over the near term. However, if your investing horizon extends out for 10, 15, or 20 years, or more, your chances of tremendous returns should increase dramatically. Before you buy stock in Vanguard Scottsdale Funds - Vanguard Russell 1000 Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Scottsdale Funds - Vanguard Russell 1000 Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $732,610!* Now, it's worth noting Stock Advisor's total average return is 840% — a market-crushing outperformance compared to 165% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 18, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: Buying This Vanguard ETF Today Will Set You Up for Life was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
16-03-2025
- Business
- Yahoo
The Smartest Vanguard ETF to Buy With $1,000 Right Now
Uncertainty fills the air. Will President Donald Trump's steep tariffs ignite a global trade war? Could the U.S. economy slip into a recession? Will the stock market sink a lot more than it already has? These and other questions might make it difficult for investors to determine the best approach to take. This is true even if you're considering which exchange-traded funds (ETFs) to buy. There are many options. As a case in point, Vanguard alone offers 90 ETFs. What's the smartest Vanguard ETF to buy with $1,000 right now? The answer depends on how much flexibility you have. If we're only talking about funds that focus on stocks and you're focused on the long term (10 years or more), I think several Vanguard ETFs are worthy contenders. For example, the Vanguard S&P 500 ETF is a tried-and-true vehicle for making money over the long term. The Vanguard Russell 1000 Growth ETF, which owns large-cap U.S. growth stocks, is the best-performing Vanguard ETF since its inception. I suspect the fund will continue its winning ways over the next decade and beyond, especially with several of its top holdings poised to benefit from increased adoption of artificial intelligence (AI). However, if you're concerned about near-term volatility, my pick for the best Vanguard ETF to buy is the Vanguard Utilities ETF (NYSEMKT: VPU). This fund owns 69 utility stocks. Its top holdings include NextEra Energy, Constellation Energy, Southern Company, Duke Energy, and Vistra Energy. The Vanguard Utilities ETF has delivered a higher return over the last 12 months than any other Vanguard ETF. It has risen so far in 2025 while the broader market has floundered in large part because investors view utility stocks as safe havens. The surging demand for energy driven by AI data centers has also provided a strong tailwind. What if you're not limited to only investing in ETFs that own stocks but are worried about economic and market dynamics? If you're willing to cast a wider net, I think the Vanguard Long-Term Treasury ETF (NASDAQ: VGLT) is arguably the best choice in the Vanguard family right now. As its name indicates, this Vanguard ETF primarily focuses on long-term U.S. Treasury bonds. It currently owns 88 bonds with an average effective maturity of 22.3 years. Almost all (99.9%) of the Vanguard Long-Term Treasury ETF's portfolio consists of U.S. government bonds. One reason to park your money in the Vanguard Long-Term Treasury ETF is that long-term U.S. Treasuries are viewed as safe. Another is that the fund will pay you to wait for an opportunity to shift your money into a higher-growth asset. Its 30-day SEC yield (the fund's annualized yield to maturity over the last 30 days divided by its total assets) is 4.7%. The Vanguard Long-Term Treasury ETF hasn't delivered the greatest price gain in 2025 of all Vanguard ETFs. However, its total return (including its juicy yield) makes it one of the top-performing Vanguard funds year to date. Neither the Vanguard Utilities ETF nor the Vanguard Long-Term Treasury ETF are perfect picks. Two key caveats especially stand out with these funds. First, even though they're safe havens (relatively speaking), you could lose money with either of these Vanguard ETFs. Both ETFs have plunged 20% or more multiple times over the last 10 years. Second, as alluded to earlier, these ETFs probably won't deliver the highest returns over the long term. That said, different market conditions make some ETFs more attractive than others -- at least temporarily. With the current turbulence and uncertainty, I think the time is ripe for the Vanguard Utilities ETF and the Vanguard Long-Term Treasury ETF. Before you buy stock in Vanguard Scottsdale Funds - Vanguard Long-Term Treasury ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Scottsdale Funds - Vanguard Long-Term Treasury ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $708,400!* Now, it's worth noting Stock Advisor's total average return is 803% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 14, 2025 Keith Speights has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends NextEra Energy and Vanguard S&P 500 ETF. The Motley Fool recommends Constellation Energy and Duke Energy. The Motley Fool has a disclosure policy. The Smartest Vanguard ETF to Buy With $1,000 Right Now was originally published by The Motley Fool Sign in to access your portfolio
