Too many people seem to want to make investing complicated. However, it doesn’t have to be so difficult. You can position yourself to make money from stock markets all around the world with just two proven exchange-traded funds (ETFs).
That’s right. Just two.
Read on to learn how to easily and profitably invest in more than 10,000 global stocks.
A fortune-building foundation
U.S. stocks as a group have produced annualized returns of roughly 10% for decades. The Vanguard Total Stock Market ETF (NYSEMKT: VTI) gives you a simple and low-cost way to buy into in this wealth-creating asset class.
This broadly diversified fund holds equity stakes in over 3,700 U.S.-based companies. Its holdings are weighted by market capitalization, so titans like Microsoft, Apple, and Nvidia are some of the fund’s biggest positions. However, the ETF also provides investors with exposure to a wide array of mid-cap and small-cap stocks. The Vanguard Total Stock Market ETF thus gives you a convenient way to profit from the relentless expansion of the U.S. economy.
Importantly, Vanguard’s ETF sports an ultra-low expense ratio of 0.03%. That equates to only $0.30 annually per $1,000 invested in the fund. This means nearly all the ETF’s gains will go to you rather than the fund’s management team.
It may also be helpful to know that you have multiple options for how to buy this (and other) ETFs. One way is to invest a large amount all at once. This will give you more time to benefit from the market’s returns, which tends to work out well for patient investors.
Another option is to invest smaller sums over longer periods of time. A dollar-cost averaging strategy can lessen your risk by spreading out your purchases.
A third option is to use a combination of these two strategies, such as investing an initial lump sum followed by regular purchases on a schedule that works best for you.
A lucrative international growth component
Companies based outside the U.S. can help you further diversify your portfolio — and boost your returns. The Vanguard Total International Stock ETF (NASDAQ: VXUS) is a great way to globalize your investments.
Shareholders of the fund obtain instant ownership of more than 8,500 international stocks. Semiconductor leader Taiwan Semiconductor Manufacturing, weight-loss drugmaker Novo Nordisk, automotive giant Toyota, and electronics behemoth Samsung count among the ETF’s largest holdings.
Notably, the fund invests in both developed and emerging markets. So, it combines the safety and dependability of established markets like Japan and Germany along with the intriguing growth potential of developing economies like India and Indonesia.
Moreover, this international fund charges annual fees of only 0.08%. That’s a sizable discount to the 0.89% average expense ratio of comparable ETFs.
When combined with the Vanguard Total Stock Market ETF, the Vanguard Total International Stock ETF can provide a powerful long-term growth element to your portfolio. Owning both funds can position you to profit from the steady expansion of the global economy.
Should you invest $1,000 in Vanguard Total International Stock ETF right now?
Before you buy stock in Vanguard Total International Stock ETF, consider this:
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Vanguard Index Funds-Vanguard Total Stock Market ETF, and Vanguard Star Funds-Vanguard Total International Stock ETF. The Motley Fool recommends Novo Nordisk and 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.
Want to Retire Rich? 2 ETFs to Buy Now and Hold Forever was originally published by The Motley Fool
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