2 No-Brainer Vanguard Index Funds to Buy With $1,500 Right Now
Index funds let investors spread money across dozens or even hundreds of companies, which mitigates the risk associated with highly concentrated portfolios. But index funds also come in different shapes in sizes, and it would be wrong to assume they are inherently good investments simply because they provide diversification.For instance, several index funds focused on artificial intelligence (AI) underperformed the S&P 500 (SNPINDEX: ^GSPC) last year despite booming interest in AI stocks. In fact, the First Trust Nasdaq AI and Robotics ETF actually declined 1% in 2024, even as the S&P 500 advanced 23%. So, investors must be choosy.With that in mind, the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Vanguard FTSE Europe ETF (NYSEMKT: VGK) are smart places to put money right now. Investors with $1,500 could split the money 75/25 by purchasing two shares of the former and five shares of the latter.Continue reading
Index funds let investors spread money across dozens or even hundreds of companies, which mitigates the risk associated with highly concentrated portfolios. But index funds also come in different shapes in sizes, and it would be wrong to assume they are inherently good investments simply because they provide diversification.
For instance, several index funds focused on artificial intelligence (AI) underperformed the S&P 500 (SNPINDEX: ^GSPC) last year despite booming interest in AI stocks. In fact, the First Trust Nasdaq AI and Robotics ETF actually declined 1% in 2024, even as the S&P 500 advanced 23%. So, investors must be choosy.
With that in mind, the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Vanguard FTSE Europe ETF (NYSEMKT: VGK) are smart places to put money right now. Investors with $1,500 could split the money 75/25 by purchasing two shares of the former and five shares of the latter.
