What are the three most necessary elements to speculate efficiently? Having some upfront cash to speculate is close to the highest of the listing. A great different to spend money on is vital, too. I would say the third ingredient is time. The extra time you could have, the more cash you may make.
In the event you’re trying to put all these elements collectively, I’ve some concepts for you. Listed here are three Vanguard exchange-traded funds (ETFs) to purchase with $2,000 and maintain endlessly.
Picture supply: Getty Photographs.
The simplest choose of all, for my part, is the Vanguard S&P 500 ETF(NYSEMKT: VOO). As its identify signifies, this Vanguard ETF makes an attempt to trace the efficiency of the S&P 500(SNPINDEX: ^GSPC).
That efficiency has been fairly good over the long term. Since its inception in September 2010, the Vanguard S&P 500 ETF has delivered a mean annual return of 14.7%. Over the past yr, the fund has jumped almost 16%. VOO-Vanguard S&P 500 ETF | Vanguard
Shopping for this Vanguard ETF provides you partial possession in 500 of the biggest public firms within the U.S. Its high holdings at the moment embrace Nvidia(NASDAQ: NVDA), Microsoft(NASDAQ: MSFT), Apple(NASDAQ: AAPL), Amazon(NASDAQ: AMZN), and Meta Platforms(NASDAQ: META). Nevertheless, the make-up of the ETF’s holdings modifications over time.
There are a number of different S&P 500 index ETFs you possibly can purchase. Nevertheless, I like Vanguard’s due to its low annual expense ratio of solely 0.03%.
What is the best-performing ETF since inception in Vanguard’s household of funds? The Vanguard Russell 1000 Progress ETF(NASDAQ: VONG). This ETF has generated a mean annual return of 16.96%. Over the past 12 months, it is up roughly 22.5%.
The Vanguard Russell 1000 Progress ETF invests in shares within the Russell 1000 Progress Index. It owns 390 development shares, with high holdings together with Nvidia, Microsoft, Apple, Amazon, and Broadcom(NASDAQ: AVGO).
Most of these names needs to be acquainted, since they’re additionally within the high holdings of the Vanguard S&P 500 ETF. That should not be stunning. Because the market caps of the very best development shares enhance, they float to the highest of the S&P 500.
You’ll have to pay a bit extra to personal the Vanguard Russell 1000 Progress ETF. Its annual expense ratio is 0.07%. Nevertheless, that is nonetheless low cost in comparison with the 0.93% common expense ratio for comparable funds.
My third choose takes a unique strategy. The Vanguard Small-Cap Worth ETF(NYSEMKT: VBR) seeks to trace the efficiency of the CRSP U.S. Small Cap Worth Index. You most likely will not be stunned that this index focuses on worth shares with comparatively small market caps.
The Vanguard Small-Cap Worth ETF has delivered a mean annual return of 9.03% since its inception in January 2004. It has risen by solely 7.5% over the past 12 months. That is nicely under the positive aspects the opposite two Vanguard ETFs on the listing have generated. Nevertheless, I believe over the subsequent a number of many years, the Vanguard Small-Cap Worth ETF might be a a lot larger winner.
Research have discovered that small-cap shares outperform large-cap shares over the long run. Worth shares additionally outperform development shares. This Vanguard ETF combines each. It owns 835 shares, none of which make up greater than 0.75% of the fund’s complete portfolio. Over 58% of the Vanguard Small-Cap Worth ETF’s holdings are within the industrial, monetary, and shopper discretionary sectors, which do not command the premium valuations that the know-how sector does.
The annual expense ratio for this Vanguard ETF is 0.07%. That is solely a fraction of the 1.1% annual expense ratio of comparable funds.
Before you purchase inventory in Vanguard Small-Cap Worth ETF, contemplate this:
The Motley Idiot Inventory Advisor analyst staff simply recognized what they consider are the 10 finest shares for buyers to purchase now… and Vanguard Small-Cap Worth ETF wasn’t considered one of them. The ten shares that made the lower might produce monster returns within the coming years.
Contemplate when Netflix made this listing on December 17, 2004… if you happen to invested $1,000 on the time of our advice, you’d have $647,425!* Or when Nvidia made this listing on April 15, 2005… if you happen to invested $1,000 on the time of our advice, you’d have $1,071,739!*
Now, it’s price noting Inventory Advisor’s complete common return is 1,056% — a market-crushing outperformance in comparison with 189% for the S&P 500. Don’t miss out on the most recent high 10 listing, obtainable while you be a part of Inventory Advisor.
*Inventory Advisor returns as of September 15, 2025
Keith Speights has positions in Amazon, Apple, Meta Platforms, and Microsoft. The Motley Idiot has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Idiot recommends Broadcom and recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
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