3 Vanguard Funds Perfect for Buy-and-Hold Investing

by | Oct 19, 2023 | Vanguard IRA

3 Vanguard Funds Perfect for Buy-and-Hold Investing




3 Vanguard Funds You Can BUY & HOLD Forever!

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3 Vanguard Funds You Can BUY & HOLD Forever!

When it comes to investing, many investors seek long-term stability and growth. One way to achieve this is by investing in low-cost index funds, which provide broad exposure to various asset classes. Vanguard, a renowned investment management company, offers a wide range of such funds. In this article, we will discuss three Vanguard funds that you can buy and hold forever to build wealth over time.

1. Vanguard Total Stock Market Index Fund (VTSAX):
For investors seeking exposure to the entire U.S. stock market, VTSAX is an excellent choice. This fund tracks the performance of the CRSP US Total Market Index, which includes large-cap, mid-cap, small-cap, and growth and value stocks. By investing in VTSAX, you gain access to a diverse portfolio of over 3,500 U.S. stocks, making it an ideal fund for long-term investing. With a rock-bottom expense ratio of 0.04%, VTSAX offers excellent value for money.

One of the main advantages of owning this fund is its low turnover rate, which reduces transaction costs and potentially lowers taxable distributions. As the U.S. economy grows over time, so does the value of your investment in VTSAX. Whether you are a seasoned investor or just starting, holding this fund forever can provide stability and growth in your portfolio.

2. Vanguard FTSE All-World ex-US Index Fund (VFWAX):
To diversify your investment beyond the U.S. market, VFWAX is an ideal choice. This fund aims to track the performance of the FTSE All-World ex-US Index, which consists of stocks from both developed and emerging markets outside the United States. By investing in VFWAX, you gain exposure to companies in Europe, Asia, Canada, and many other regions worldwide.

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Investing in international markets can help spread risk and potentially enhance returns, especially during periods when the U.S. market may underperform. With an expense ratio of just 0.11%, VFWAX offers broad international exposure at a low cost. Holding this fund forever can provide you with the opportunity to benefit from global economic growth and diversification.

3. Vanguard Total Bond Market Index Fund (VBTLX):
For investors looking to add stability to their portfolio, VBTLX is an excellent choice. This fund seeks to track the performance of the Bloomberg Barclays U.S. Aggregate Bond Index, which includes a broad range of investment-grade U.S. bonds. By investing in VBTLX, you gain exposure to government, corporate, and mortgage-backed securities, providing income and potential capital preservation.

VBTLX offers a low-cost option for exposure to the bond market, with an expense ratio of only 0.05%. Holding this fund forever can provide you with stability and consistent income, especially during downturns in the stock market. Adding VBTLX to your portfolio helps balance the volatility of equities, making it an attractive choice for long-term investors.

When it comes to investing, adopting a buy-and-hold strategy with low-cost index funds can be an effective way to build wealth over time. Vanguard funds like VTSAX, VFWAX, and VBTLX offer broad exposure and low expenses, making them suitable for long-term investors seeking stability and growth. By diversifying across stocks and bonds, you can construct a well-rounded portfolio that can potentially stand the test of time.

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