2 Simple Vanguard ETFs I’d Choose to Invest in Today

Why Consider ETFs for Stock Investing?

Investing in exchange-traded funds (ETFs) is a smart way to gain exposure to a wide range of companies with a single purchase. While ETFs may not have the excitement of picking individual stocks, they often provide strong returns and generally carry less risk since your investment is spread across multiple businesses rather than relying on the success of just one.

Vanguard stands out for its selection of ETFs that are well-suited for long-term investors. If you’re looking to diversify your portfolio, the following two Vanguard ETFs offer complementary strategies worth considering.

1. Vanguard S&P 500 ETF

Although the U.S. economy faces occasional challenges, its long-term growth prospects remain strong. That’s why the Vanguard S&P 500 ETF (NYSEMKT: VOO) is a popular choice for investors. This ETF tracks the performance of the 500 largest publicly traded American companies, mirroring the overall direction of the U.S. market.

In recent years, technology companies have become a significant portion of the S&P 500—now making up nearly one-third of the index. However, all 11 major sectors are still represented. Here’s how VOO’s holdings are distributed:

• Information Technology: 33.4%
• Financials: 12.9%
• Communication Services: 11%
• Consumer Discretionary: 10.4%
• Health Care: 9.4%
• Industrials: 8.6%
• Consumer Staples: 5%
• Energy: 3.2%
• Utilities: 2.2%
• Materials: 2%
• Real Estate: 1.9%

What truly matters is the quality of the companies within these sectors. Many are industry leaders with a proven track record of success, which is why they’re included in the index.

Although VOO experienced a slight decline of about 1% through March 11, 2026, its long-term outlook remains positive. While past results don’t guarantee future returns, the S&P 500 has historically delivered an average annual return of roughly 10% over time.

While these returns may not match the dramatic gains of certain individual stocks, VOO has consistently helped investors build wealth. Plus, with an expense ratio of just 0.03%, more of your investment returns stay in your account.

2. Vanguard Total International Stock ETF

Unlike VOO, which focuses exclusively on U.S. companies, the Vanguard Total International Stock ETF (NASDAQ: VXUS) provides exposure to international markets. Although VXUS has generally lagged behind the S&P 500 in performance, it offers a way to diversify and potentially benefit from growth in other regions, helping to offset downturns in the U.S. economy.

Understanding International Markets

International stocks are typically categorized as either developed or emerging markets. Developed markets, such as the U.K., Japan, and France, feature stable economies and advanced infrastructure. Emerging markets, including China, Brazil, and India, are less established but often offer higher growth potential.

VXUS includes nearly 8,700 stocks spanning these regions:

• Europe: 37.9%
• Pacific: 26.4%
• Emerging Markets: 26.6%
• North America: 7.8%
• Middle East: 0.8%
• Other: 0.5%

Investing in developed markets generally means more stability but lower growth, while emerging markets can be more volatile but offer greater upside. VXUS gives you access to both, balancing risk and reward.

While it’s not necessary to dedicate a large portion of your portfolio to international stocks, allocating up to 10% can provide additional diversification without sacrificing the growth potential typically found in leading U.S. companies.

Is Now the Time to Buy Vanguard S&P 500 ETF?

Before adding the Vanguard S&P 500 ETF to your holdings, consider this:

For example, when Netflix was recommended on December 17, 2004, a $1,000 investment would now be worth $514,000. Similarly, a $1,000 investment in Nvidia on April 15, 2005, would have grown to $1,105,029.*

Currently, Stock Advisor boasts an average return of 930%, far outpacing the S&P 500’s 187%. Don’t miss the latest top 10 picks—join a community of investors who are committed to long-term success.