Vanguard ETFs for Long-Term Growth and International Diversification

Vanguard exchange traded funds are among the most popular ETFs. These funds are known for their high intraday liquidity, low expense ratios and transaction costs and can be especially beneficial for long-term portfolios.

As of January 2020, Vanguard had more than $ 6 billion in assets under management worldwide. The company's founder, John Bogle, is widely regarded as a pioneer of index investing, with Warren Buffett saying in a 2016 letter to shareholders that “ if a statue is ever erected in honor of the person who has done most for US investors, the hands-down choice should be Jack Bogle. "

Today we look at two Vanguard ETFs, one offering exposure to growth stocks and the other to international markets:

1. Vanguard Russell 1000 Growth Index Fund ETF shares

Current price: $ 229.06
52 Week Range: $ 131.88 – $ 240.69
Dividend Yield: 0.76%
Expense Ratio: 0.08%

The Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ πŸ™‚ provides exposure to growth stocks in US-based large-cap (cap) companies.

VONG, which has 450 companies, tracks a series of growth-oriented companies from the Russell 1000 Growth Index, 1,000 of the largest public companies in the United States.

The ten largest stocks in VONG make up more than 45% of the fund's $ 8.1 billion net assets.

In terms of sector allocation, technology tops the list at 44.6%, followed by consumer discretionary (20%), healthcare (13.70%) and industry and services (12.10%). Apple (NASDAQ :), Microsoft (NASDAQ :), Amazon (NASDAQ :), Alphabet (NASDAQ :), (NASDAQ πŸ™‚ and Facebook (NASDAQ πŸ™‚ are at the top of the list of companies. These companies have become a household name over the past ten years

.

Since the start of the year, the fund is up more than 25%, hitting a record high of $ 240.69 on September 2. The lagging P / E and P / B ratios stand at 38.1 and 11.3 respectively.

Many names will be released from the top companies in the coming days. Therefore, further hiccups and profit taking are possible in the short term. Buy-and-hold investors who can weather any short-term volatility should keep the fund on their radar.

Those who would like to invest in large-capitalization growth companies might consider buying into the price drops. The Street typically views large-cap companies as stable long-term investments, so such names are unlikely to be held by the market for too long.

2. Vanguard FTSE ETF for Developed Markets

Current Price: $ 41.75
52 Week Range: $ 28.46 – $ 44.67
Dividend Yield: 2.37%
Expense Ratio: 0.05%

For those looking to invest outside the US, the Vanguard FTSE Developed Markets Index Fund ETF Shares (NYSE πŸ™‚ provides access to a wide variety of companies, primarily in Europe and the Pacific region, as well as Canada.

VEA has 3998 companies and follows the. The top ten names represent approximately 10% of net assets of 119 billion euros.

Swiss-based consumer goods giant Nestle (OTC :), South Korea-based technology conglomerate Samsung (KS πŸ™‚ Electronics (OTC :), Switzerland-based pharmaceutical and healthcare company Roche (OTC πŸ™‚ and Novartis (OTC :)) , Germany-based software company SAP (NYSE πŸ™‚ and Japan-based Toyota Motor (NYSE πŸ™‚ lead the names of the companies in the fund.

Year-to-date, VEA is down about 5%. The lagging P / E and P / B ratios are at 18.3 and 1.5. In the short term, a declining gross domestic product around the world could threaten returns. However, investors who want to diversify internationally but avoid it can find a value of around $ 37.5

.

Below are articles covering additional Vanguard ETFs worth considering:

Vanguard Consumer Staples Index Fund ETF (NYSE πŸ™‚ – secured;
Vanguard Dividend Appreciation ETF (NYSE πŸ™‚ – secured;
Vanguard FTSE Pacific ETF (NYSE πŸ™‚ – covered;
Vanguard Materials ETF (NYSE πŸ™‚ – covered;
Vanguard Mid-Cap Index Fund ETF (NYSE πŸ™‚ – backed
Vanguard Real Estate Index Fund ETF Shares (NYSE πŸ™‚ – backed
The Vanguard Total International Bond ETF (NASDAQ πŸ™‚ – covered
Vanguard Total Bond Market Index Fund ETF (NASDAQ πŸ™‚ – backed;
Vanguard Total Stock Market ETF (NYSE πŸ™‚ – backed.

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