4 Vanguard ETFs to Buy With $1,000 and Hold Forever

Source The Motley Fool

It's a chaotic time in the market, that's for sure. The roller-coaster ride of 2025 has left many investors feeling confused and not a little bit fearful. Now is exactly the right time to remember that successful investing doesn't have to be complicated. In fact, sticking to the basics and keeping things simple is usually your best bet.

Exchange-traded funds (ETFs) are an amazing tool for investors that removes a lot of complexity. For investors looking for a more "set it and forget it" approach, they're hard to beat, and for investors who still want to take an active role in managing their portfolio, they provide an excellent shortcut to diversification.

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While it's far from the only ETF issuer, Vanguard offers some of the best ETFs around. Founded by the legendary Jack Bogle, who pioneered the low-cost index funds that preceded ETFs, Vanguard is trusted by millions of investors and manages more than $10 trillion in assets.

And critically, its ETFs are generally extremely low-cost. The cost to own an ETF is revealed by its expense ratio, which is the percentage of the total value of your investment that the issuer collects in fees. For example, if you have $100 invested in an ETF with an expense ratio of 1%, it would cost you $1 per year to own.

Let's take a look at four Vanguard ETFs that are a great addition to any portfolio.

1. Vanguard S&P 500 ETF (NYSEMKT: VOO)

This is a broad market ETF covering the S&P 500. With one investment, you gain exposure to the 500 largest U.S companies by market capitalization. This is a great place to start for a broad market ETF. While its sibling, the Vanguard Total Stock Market Index Fund ETF, is also a great option and provides even more diversification, especially with smaller-cap companies, VOO is one of the most popular ETFs on the market for a reason and has the slight edge in performance.

Also, it is extremely low-cost. With an expense ratio of just 0.03%, the management fees are negligible. With $1,000 invested, you are paying just $3 in annual fees.

2. Vanguard FTSE Developed Markets ETF (NYSEMKT: VEA)

This ETF provides exposure to developed markets outside of the U.S., like Western Europe, Japan, and Australia. It's a nice counterpoint to most ETFs that are focused on U.S. companies. Diversifying outside of the U.S. market is important, but an element that many investors overlook. This ETF also has an expense ratio of just 0.03%.

3. Vanguard Information Technology ETF (NYSEMKT: VGT)

This ETF is a little different from the previous two in that it doesn't seek to cover a broad swath of the market; rather, it provides exposure to a focused section of the market. If you believe that AI, robotics, quantum computing, and other technologies will drive the future, this is the Vanguard ETF for you. The fund is invested in more than 300 of the most promising names in tech, large and small, though it is heavily weighted toward the heavy hitters like Nvidia.

Since the Information Technology ETF is more focused than the previous two, it is a little bit more expensive. However, at 0.09%, the ETF is still much cheaper than many of its competitors. The ARK Innovation ETF, for instance, has an expense ratio of 0.75%.

4. Vanguard Total Bond Market ETF (NASDAQ: BND)

Bonds are an important part of a well-diversified portfolio. The security and stability they provide are invaluable when the stock market is as chaotic as it has been recently -- although it's important to know they're not without risk. This option from Vanguard offers exposure to a broad basket of government and corporate bonds with varying maturity dates, balancing security and yield. And, like the others, it is cheap. Its expense ratio is, once again, just 0.03%.

By building a portfolio foundation that includes these four low-cost Vanguard ETFs, investors can better navigate the current market with confidence while maintaining an eye for growth. And while they are a great place to start, they're far from the only options. If you opt for other funds, just make sure you pay attention to their expense ratios; you don't want high costs to eat into your returns.

Should you invest $1,000 in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

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*Stock Advisor returns as of April 28, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Vanguard S&P 500 ETF, Vanguard Tax-Managed Funds-Vanguard Ftse Developed Markets ETF, Vanguard Total Bond Market ETF, and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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