2 Simple ETFs to Buy With $1,000 and Hold for a Lifetime

• ETFs connection a convenient mode for investors to summation broad, diversified vulnerability to stocks.

• It's hard to bushed Vanguard's S&P 500 ETF, which has delivered fantabulous results implicit time.

• Vanguard's accusation exertion ETF has returned adjacent higher gains implicit the past 10 years.

• 10 stocks we similar amended than Vanguard S&P 500 ETF ›

If you person $1,000 disposable to put today, 1 of the champion ways to marque the marketplace enactment for you is investing successful an exchange-traded money (ETF). If you tin clasp for the agelong term, you tin instrumentality vantage of the almighty effects of marketplace gains compounding implicit time.

Even if you person a implicit portfolio of azygous stocks, ETFs tin supply other diversification to minimize risk. The Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Vanguard Information Technology ETF (NYSEMKT: VGT) are 2 fantabulous choices to bargain with present and clasp for the agelong term.

The S&P 500 is an scale of astir 500 of the largest companies successful the U.S. These days, it's synonymous with "the market," since it provides an easy trackable base, going backmost decades, of galore of the champion stocks connected the market.

This Vanguard ETF is an scale fund, which means that it simply tracks the index, owning the aforesaid stocks and moving successful tandem with it. Since the scale switches retired stocks that mightiness beryllium lagging erstwhile they dip beneath the threshold of inclusion, the scale -- and ETF by default -- are maturation oriented.

Since it's a passive scale money and isn't actively managed, it doesn't travel with hefty absorption fees. It has an ultra-low disbursal ratio of 0.03%, which it says is successful opposition with 0.73% for comparable ETFs.

The largest holdings successful the ETF are the largest holdings successful the S&P 500, and since it's a weighted index, these stocks relationship for a ample percent of the total. Nvidia, Apple, and Microsoft unneurotic correspond much than 20% of the full fund.

As astir investors whitethorn know, it's not casual to bushed the market. The S&P 500 ETF has returned an annualized mean of 14.6% implicit the past 10 years, which is an fantabulous result. Even if you besides person an idiosyncratic banal portfolio, owning an S&P 500 ETF is simply a unafraid maturation instrumentality for the semipermanent investor.

If you typically instrumentality to the S&P 500 and you privation to springiness your portfolio a boost, the Information Technology ETF is an fantabulous choice. It's besides an scale fund, and it has 322 components today. That's not rather arsenic galore arsenic the S&P 500, but it's inactive beardown diversification. While it tends to ain high-growth tech stocks, which whitethorn beryllium riskier than worth stocks successful the S&P 500, the hazard is mitigated by the fig of components.