4 No-Brainer Vanguard ETFs to Build Lasting Wealth With $250 Monthly
Dollar-cost averaging into these four Vanguard ETFs could help you build long-term wealth.
Overview
If you're looking to build long-term wealth, one of the best ways to accomplish this is through dollar-cost averaging into a group of index exchange-traded fund (ETF) holdings over the long term. With dollar-cost averaging, you remove emotion from your investment decisions, and instead of focusing on market timing, the emphasis shifts to time in the market.
ETFs serve as a great basis to employ this strategy, since they give investors an instant portfolio of stocks. Market-cap-weighted index ETFs are even better, since a survival-of-the-fittest dynamic drives their performance. The majority of stocks actually underperform, with the major market indexes generally powered by a handful of megawinners. In fact, a J.P. Morgan study found that between 1980 and 2020, 40% of stocks in the Russell 3000 had absolute negative returns, and two-thirds underperformed.
Details
With less than 15% of actively managed large-cap funds beating the S&P 500 over the past decade, dollar-cost averaging into a group of core index ETFs is a smart decision. And as the low-cost leader, Vanguard's ETFs are a great place to start. Invest $1,000 across four of its ETFs, or $250 each, over a long period of time, and you're well on your way to a multimillion-dollar portfolio.
Source
Originally published at www.fool.com.