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Vanguard ETF is very popular: these two ETFs are committed to long-term growth and international diversified investment

2020-11-02 00:47:34

VNSMART- Vanguard Groups ETF have always been popular. These funds are known for their high intraday liquidity, low expense ratio and transaction costs, which are particularly beneficial for long-term investment portfolios. As of January 2020, Vanguard Group manages more than $6 trillion in global assets.The companys founder, John Bogle, is considered a pioneer in index investment. Buffett stated in his 2016 shareholder letter, If a sculpture is to be erected to commemorate the person who has made the greatest contribution to the US investment market, it should be John. Bogle."

In this article, we will look at two ETF under the Vanguard Group in the future, one of which provides exposure to growth stocks, while the other provides investment exposure to international markets:

1Vanguard Russell 1000 Growth Index Fund ETF Shares

Current price: $229.06

52th week price range: USD 131.88-240.69

Dividend yield:0.76%

Expense ratio:0.08%

Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG) Provide investors with exposure to a basket of US growth companies with large market capitalization stocks.

VONG holds the stocks of 450 companies and tracks the Russell 1000 Growth Index, which is composed of the 1,000 largest listed companies in the United States.

And among them, investment in the top ten stocks accounted for US$8.1 billion of the fund, reaching more than 45% of total assets, with Apple, Microsoft, Amazon, Google and Facebook topping the list.

In terms of industry allocation, technology stocks topped the list with 44.6%, followed by consumer discretionary (20%), health care (13.70%) and industrial stocks (12.10%).

Since the beginning of this year, the fund has risen by more than 25% and hit a record high of US$240.69 on September 2, with past performance P/E and P/B ratios of 38.1 and 11.3, respectively.

In the coming week, many large companies will announce quarterly earnings. Therefore, short-term volatility and profit-taking are possible. Investors who can withstand any short-term volatility to buy and hold can consider intervening on dips when the fund falls.

Wall Street generally treats large-cap stocks as stable long-term investments, so it is unlikely that large-cap stocks will be held down by the market for too long.


2Vanguard FTSE Developed Markets ETF

Current price: $41.75

52th week price range: USD 28.46-44.67

Dividend yield:2.37%

Expense ratio:0.05%

For those investors who want to invest in markets outside the US, Vanguard FTSE Developed Markets ETF (NYSE: VEA) is another fund that can provide investment exposure for multiple companies, mainly covering companies in Europe, the Pacific and Canada. 

VEA currently holds 3998 stocks and tracks the FTSE Developed All Cap ex USA (FTSE Developed All Cap ex USA) index. The top ten companies account for about 10% of net assets, reaching $119 billion, including Swiss consumer goods giant Nestlé, South Korean technology giant Samsung Electronics, Swiss companies and sponsor companies Roche and Novartis, German software companies SAP and Japanese Toyota Motor.

So far this year, VEA has fallen by about 5%, and the past P/E and P/B ratios are 18.3 and 1.5 respectively.

In the short term, the GDP of the world's major economies continues to decline, which may pose a threat to investment returns. However, for investors who want to invest globally and diversify their risks, but are not willing to enter emerging markets, this is a worthwhile investment subject.

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