Back
The Motley Fool: ETFs can be safe investments
Jan 5, 2025
Also: You have a taxpayer bill of rights and an advocate service
The Fool’s Take
The S&P 500 wrapped up another tremendous year, up nearly 25%. Over the last five years, the broad index is up some 84%, leading some to wonder whether the stock market is due for a slowdown or whether a bear market may be around the corner.
For growth investors, rather than picking stocks individually, a safer approach nowadays may be to invest in an exchange-traded fund (ETF) that’s less vulnerable to a single stock’s fortunes and can still generate solid long-term returns. So consider the Vanguard Growth ETF. It can be an ideal investment to buy and forget about.
With an ultralow annual fee of just 0.04% (costing you $4 for a $10,000 investment), the ETF has positions in large U.S. stocks. As of the end of November, it contained 182 stocks, with the technology sector accounting for about 57% of its total value. Apple, Nvidia, Microsoft and Amazon.com were the fund’s top holdings, making up 39% of its total value and giving investors a position in the world’s leading growth stocks.
Business Briefing
Become a business insider with the latest news.
These stocks have helped the fund average annual gains of 19% over the past five years and 15.6% over the past decade. Investing in top tech companies can be a good way to position yourself for strong returns in the long run. (The Motley Fool owns shares of and recommends the Vanguard Growth ETF.)
14Shares
0Comments
3Favorites
9Likes
No content at this moment.