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Yahoo
21-07-2025
- Business
- Yahoo
5 Simple ETFs to Buy With $1,000 and Hold for a Lifetime
Key Points The Vanguard 500 ETF is a solid core holding nearly any investor should own. The Vanguard Growth ETF and Invesco QQQ Trust are two great growth ETFs. The Schwab U.S. Dividend Equity ETF is great for those seeking a solid yield. 10 stocks we like better than Vanguard S&P 500 ETF › When it comes to building long-term wealth, often times simplicity works best. You don't need to chase the hottest stock or time the market. What you do need are a few core positions you can buy, hold, and consistently dollar-cost average into. Exchange-traded funds (ETFs) are one of the best investments to do just that. Here are five ETFs that I think are perfect for long-term investors. You don't need to own all of them, but if you've got $1,000 to put to work, any of these would be a smart place to start. Just remember that $1,000 is just a starting point, and it's best to consistently invest into ETFs each month over time. Vanguard S&P 500 ETF If I could only pick one ETF to hold for the next 30 years, the Vanguard S&P 500 ETF (NYSEMKT: VOO) would be it. It tracks the 500 largest companies in the U.S., essentially giving you a slice of the entire U.S. economy. You get instant exposure to the market's biggest companies, which also just so happen to be some of the market's biggest winners. The ETF's expense ratio also incredibly low. It's just 0.03%, which means nearly every dollar you put into the fund is working for you. Over the past 10 years, it's produced an average annual return of around 13.6%, as of the end of June. That kind of consistency makes it one of the most reliable long-term investments out there. Vanguard Growth ETF If you want to lean more into tech and high-growth names, the Vanguard Growth ETF (NYSEMKT: VUG) is the investment for you. It still gives you broad exposure to large-cap stocks, but it focuses on companies with strong earnings and sales growth. That means you're getting more exposure to companies like Nvidia and Amazon. The ETF, which follows the CRSP US Large Cap Growth Index, currently holds around 165 stocks. The ETF's focus on growth has paid off with market-beating returns. Over the past 10 years, the Vanguard Growth ETF has returned an average of 16.2% annually, as of the end of June, easily outpacing the broader market. With an expense ratio of just 0.04%, it's also cost-effective. You're not getting the same diversification as the S&P 500, which means you could see more volatility at times. However, if you believe tech and innovation will continue to lead the market -- and I do -- this is a solid way to get more exposure without having to pick winners yourself. Invesco QQQ Trust Another simple, growth-oriented ETF to own is the Invesco QQQ Trust (NASDAQ: QQQ). The ETF tracks the Nasdaq-100, which includes the 100 largest non-financial stocks listed on the Nasdaq exchange. Not surprisingly, that means it is heavily concentrated in tech and consumer names. This ETF has consistently been one of the best performers out there. Over the past 10 years, it's returned 18.7% annually, as of the end of June. Even more impressive is that it's outperformed the S&P 500 more than 87% of the time on a rolling-12-month basis over the past decade. That type of performance is hard to ignore. Its top holdings read like a who's who of Silicon Valley: Apple, Microsoft, Nvidia, Amazon, and Alphabet, to name a few. That said, the weightings of its top holdings are a bit more spread out than some other tech-heavy ETFs, including the Vanguard Growth ETF. It does carry a slightly higher expense ratio at 0.2%, but for the performance you're getting, it's more than fair. If you're comfortable with a little more volatility in exchange for long-term upside, the Invesco QQQ Trust should be on your short list of ETFs to buy right now. Schwab U.S. Dividend Equity ETF While technology is a hot sector, not every investor is looking to go all-in on tech stocks. For investors with more interest in income and value stocks, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a great option. It tracks the Dow Jones U.S. Dividend 100 Index, which is focused on companies with strong dividend histories and solid fundamentals. It also has a low expense ratio of just 0.06%. The ETF currently has a yield of nearly 4%, giving investors a solid source of income. This fund isn't just investing in high-yield stocks, though; it is looking for ones that have strong track records of consistently increasing their dividends over time. While the ETF has not been putting up the same type of performance as growth-stock oriented ETFs, it has still been a solid performer. It has generated an average annual return, including dividends, of 11.2%, as of the end of June. That's better than most value-focused ETFs over the same stretch. If you're building a portfolio for retirement or just want a ballast in a growth-heavy portfolio, the Schwab U.S. Dividend Equity ETF fits the bill. Vanguard International High Dividend Yield ETF The simple fact is that most investors are underexposed to international stocks. The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) can help fix that predicament. This ETF focuses on non-U.S. companies with above-average dividend yields. Over 40% of its portfolio is in European names, with the rest split between Asia-Pacific and emerging markets. It's been the second-best-performing ETF in Vanguard's lineup so far this year, up 20.7% as of July 16, trailing only one that solely focuses on Europe. It's also been Vanguard's top-performing international-focused ETF over the past five years, with an average annual return of around 14.5%, as of the end of June. That's impressive given how long international markets have lagged the U.S. If you're looking to round out your portfolio with some international exposure, the Vanguard International High Dividend Yield ETF is worth owning. Its expense ratio of 0.17% is higher than most Vanguard ETFs, but that is typical of international-focused ETFs. Should you buy stock in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet, Invesco QQQ Trust, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. 5 Simple ETFs to Buy With $1,000 and Hold for a Lifetime was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
06-07-2025
- Business
- Yahoo
Invest like Warren Buffett? Here are 3 simple ways to do it
Most investors would be happy with anything like the stock market success of billionaire Warren Buffett. He has achieved legendary status because of what seems like his Midas touch in the markets. In fact, as he himself says, a lot of Buffett's success has been built on consistently applying some pretty simple but effective principles. Small, private investors with just a modest amount of spare cash can apply some of those Buffett principles themselves. Here are three. It sounds blindingly obvious, but if you put money into a business you do not understand, you are not investing. You are merely speculating. Yet that is exactly what a lot of people do, putting their hard-earned cash into shares without understanding how the business in question even makes its money (if it does). Buffett sticks to his circle of competence. He has spent huge quantities of time learning about industries and specific businesses so he is more likely to know what he is getting into when he buys a given share. Buffett's company Berkshire Hathaway is rolling in cash – to the tune of hundreds of billions of dollars. Yet, rather than pay a dividend, he is happy to let it up pile up awaiting some future use. That is an example of what is known as compounding. Rather than see dividends as passive income to fund life's little luxuries, Buffett aims to use them to speed up his wealth building. Even on a small scale, a private investor can do the same with any dividends they earn. There are multiple reasons Buffett may decide not to buy a particular share. For example, he may not comfortably understand its business or may feel uneasy about its accounting practices. But another reason is because the share price is too high. Many people think a great business makes a great investment. Buffett is a seasoned enough market participant to know that the two things are not necessarily the same. Even a great business can make a poor investment if they are overpriced. I apply this approach. For example, one share I have been eyeing for years is food producer Cranswick (LSE: CWK). It is not a household name but makes a lot of food products sold in supermarkets and grocery stores. Cranswick has honed a highly successful business in this rather unexciting-sounding field. It has grown its dividend per share annually for more than three decades. Cranswick has developed an extensive network of food production sites and developed deep relationships with customers. It has honed a consistently profitable business model. One risk I see is reputational damage. Cranswick has attracted negative headlines this year relating to the conditions at one of its pig farms. That could hurt customers' enthusiasm for its products, and so damage its revenues. At the right price, I would be happy to buy Cranswick shares. However, at 22 times earnings, the share price is higher than I am willing to pay. So for now, I will do what Buffett sometimes does for years with a share… watch and wait. The post Invest like Warren Buffett? Here are 3 simple ways to do it appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
04-07-2025
- Business
- Yahoo
3 Safe-and-Steady Stocks on Our Watchlist
By avoiding big swings, low-volatility stocks let investors focus on long-term fundamentals. These stocks may not be up 100% in a single year, but they offer a measured approach to building wealth over time. But not all investments are created equal, which is why we built StockStory - to help you separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks that could succeed under all market conditions. Rolling One-Year Beta: 0.59 With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter. Why Is VITL a Top Pick? Unit sales were phenomenal over the past two years, showing demand is robust and retailers can't stock enough of its products Notable projected revenue growth of 26.7% for the next 12 months hints at market share gains Earnings per share grew by 161% annually over the last three years and trumped its peers At $38.90 per share, Vital Farms trades at 28.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. Rolling One-Year Beta: 0.87 Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders. Why Are We Fans of CDRE? Annual revenue growth of 9.7% over the last two years beat the sector average and underscores the unique value of its offerings Market share is on track to rise over the next 12 months as its 17.6% projected revenue growth implies demand will accelerate from its two-year trend Earnings per share grew by 19.7% annually over the last two years, massively outpacing its peers Cadre's stock price of $32.23 implies a valuation ratio of 20.3x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Rolling One-Year Beta: 0.29 Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide. Why Does ZTS Catch Our Eye? Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 9.1% over the past two years Robust free cash flow margin of 21.4% gives it many options for capital deployment ROIC punches in at 28.8%, illustrating management's expertise in identifying profitable investments Zoetis is trading at $159.18 per share, or 25.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Going into Debt To Build a Credit Score? George Kamel Says You Don't Have To ‘Play the Game'
Your credit score is considered a reflection of your financial health. However, George Kamel has a different mindset. In a recent YouTube video, the Ramsey personality explained why he believes credit scores aren't actually important. In fact, he's actually credit invisible, meaning he doesn't have a credit history with any of the three major reporting agencies. 'The credit score is an ingenious way for lenders to lure you deeper into their web of debt, while convincing you that you're doing great with money,' he said. 'And this little game has caused so many people to fall for debt traps and held them back from building true wealth.' Consider This: For You: Kamel said many people believe they need to play the 'credit score game' — i.e., working to earn a higher credit score to have access to more debt, to buy things they can't afford, but this isn't the case. In fact, he said you don't actually one at all. GOBankingRates breaks down what Kamel means by opting out of the credit score 'game,' and if it's possible to live without worrying about one. 'You can live your life without a credit score,' he said. 'In fact, living without it can help you build wealth faster.' Personally, Kamel said that's what happened to him. 'When you decide to pay off all of your consumer debt and cut up your credit cards, you will take back control of your greatest wealth building tool — your income,' he said. 'And with that comes the welcome disappearance of your precious credit score.' If you're truly committed to putting debt in your rearview mirror, he said you won't need a credit score. In fact, he said the best credit score is actually not having one at all. Explore More: As of the third quarter of 2024, the average credit card utilization ratio in the U.S. was 29%, according to Experian. Given this, the idea of having zero debt and not relying on credit at all might sound appealing. However, not having a credit score can make some aspects of life more complicated. For example, if renting a home or leasing equipment — i.e., a wireless modem or a cable box — you might have to pay a higher security deposit, according to Experian. Additionally, if you were to find yourself in a situation where you needed an emergency loan, obtaining one could be tricky. Of course, this might not matter to you. If, like Kamel, you feel the benefits of being credit invisible outweigh any potential drawbacks, this could be the right move for you. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Unreliable SUVs To Stay Away From Buying Warren Buffett: 10 Things Poor People Waste Money On This article originally appeared on Going into Debt To Build a Credit Score? George Kamel Says You Don't Have To 'Play the Game'
Yahoo
02-07-2025
- Business
- Yahoo
Tony Robbins: 5 Reasons You're Not Rich and Confident People Are
Tony Robbins has helped people achieve their personal and financial goals for decades. He's arguably the most well-known individual in the personal development industry, and he has shared plenty of insights that can help people reach their full potential. Explore More: Find Out: Throughout the years, Robbins has also shared some of the reasons why people do not get rich. He also believes confident people are more likely to get rich and backs it up. If you're looking to reach big financial goals, getting rid of these hurdles is a great way to start. People like certainty, but it's also good to have a bit of uncertainty. That's what Robbins believes, and it's the uncertain times that can create massive wealth-building opportunities. Economic uncertainty presents tremendous opportunities for investors who remain patient and build their positions. The start of the year featured plenty of panic and uncertainty amid tariffs, but investors who remained firm and bought the dips were greatly rewarded. Read Next: 'The only thing that's keeping you from getting what you want is the story you keep telling yourself,' Robbins has said in the past. It's a valuable lesson for achieving any goal. You have to change the story in your head to change your results. People who aren't rich yet may operate on a poverty mindset, and that type of thinking can keep you down. Switching your mindset to one of abundance involves focusing on the actions you will take and how they will lead to your dream lifestyle. Telling yourself positive stories that acknowledge how much work it will take can help you become rich. Robbins also believes that abundance appears to people who are grateful. Keeping a gratitude journal and using it each day can help you view life from a more optimistic lens. You can appreciate how much you have accomplished and use that momentum to achieve your financial goals. People who complain too often or take their achievements for granted may remain stuck or decline over time. They might also complain or become ungrateful right when momentum starts to build, possibly causing regression. If you want to achieve any objective, you must first set it as a goal. However, you also have to set a bunch of smaller goals on the way. If you want to get from $0 to $1 million, you have to set goals around actions, such as finding a new side hustle. It's also important to set milestone goals like reaching your first $100,000 on the path to your first million. Robbins views goals as magnets that attract the things that make them come true. If you have a goal to have a $1 million net worth in a decade, that goal will lead to good financial habits like saving money and making regular investments. It's also good to set goals that you can only achieve once you have the money. For instance, single people can set the ambitious goal of making enough money so they can support a large family in the future. Thinking in this way can inspire young professionals to double down on their careers so they are well-prepared for children. Confidence is a critical component that you need to achieve any goal. Confident people focus on what they can control instead of sulking about what they cannot control. People who lack confidence may blame other things for their personal shortcomings while succumbing to bad financial habits. Confident people acknowledge some things aren't perfect but focus on what they can do to change their lives. Robbins believes that confidence allows people to get rid of negative beliefs and develop a growth mindset that leads to massive action. You'll have to work hard to become rich, but it's worth it when you get there. More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on Tony Robbins: 5 Reasons You're Not Rich and Confident People Are
