Two S&P 500 ETFs to Buy With $1,000 and Hold Forever

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Once upon a time, in the strange land of Wall Street, there was a peculiar creature known as the Exchange-Traded Fund, or ETF for short. A creature so sly, so clever, it made its way into the hearts and wallets of investors faster than a jackrabbit on roller skates. You see, ETFs are much like your usual stock, but oh, they come with a peculiar twist-no hefty upfront cost and no arduous “how-do-I-invest” headaches. You simply hop in, and off you go. They come in all shapes and sizes, some prancing about actively managed, others contentedly passive. But the granddaddy of them all? Why, the S&P 500 ETFs, of course.

Now, if you’ve been sitting on a shiny little treasure chest of $1,000, wondering where to plant your golden coins, let me spin you a tale. Two absolutely delightful little ETFs are waiting for you: the Vanguard S&P 500 ETF (VOO) and its sprightly cousin, the Vanguard S&P 500 Growth ETF (VOOG). Both are as nifty as a magician’s hat-each with its own charm and sparkle.

Buy the Market-The Tale of the Grand S&P 500

The idea behind these S&P 500 ETFs is as simple as pie-oh, and we’re talking about a delicious, perfectly baked pie. You see, they mimic the mighty S&P 500 index, which itself is a glittering collection of 500 of the largest and most marvelous companies around. The beauty of this is that by simply owning a slice of the ETF, you get a tiny morsel of each of these corporate titans. No need to pick and choose, no need for sleuthing-just a healthy dose of diversification with a side of low fees.

Now, every so often, people chatter on about “beating the market,” as though it’s some impossible, mythical creature that only the most daring can tame. But let me tell you something-the market is a beast that’s notoriously tricky to outwit. Every year, as the Spiva Scorecard proves, most funds that try to beat the market fail miserably, tripping over their own feet and falling into the pit of underperformance. It’s a bit like trying to beat a giant at chess. And here’s the kicker-when the market does well, it becomes ever harder to conquer. Just last year, for instance, the S&P 500 jumped a whopping 25%, and guess what? A staggering 65% of large-cap funds couldn’t keep up.

So, instead of battling this formidable force, why not just buy it? In fact, Warren Buffett himself-the wizard of investing-says the same. While he can perform his own brand of wizardry with his investments, he still recommends that most everyday folks hop aboard the S&P 500 train. Even his prized Berkshire Hathaway had a stake in S&P 500 ETFs, which I daresay is quite the endorsement. For many retail investors, having a potpourri of around 25 to 30 well-chosen stocks can work wonders, but why not sprinkle in a little S&P 500 magic too?

Enter the Vanguard S&P 500 ETF, the grand champion of ETFs with $1.3 trillion in assets under management. A truly titanic figure! Investors trust the Vanguard name-like an old, reliable friend-and the fund charges a rather teeny 0.03% fee, which is practically a steal when compared to the industry average of 0.75%. It’s like finding a rare treasure for a bargain price!

Beat the Market-The High-Flying S&P 500 Growth ETF

But, dear reader, what if you want to kick things up a notch? What if you’re ready to challenge the mighty market, but with a little more flair and a touch more panache? Enter the Vanguard S&P 500 Growth ETF. This sprightly fellow follows the S&P 500 Growth index, a collection of the fastest, most daring companies in the S&P 500-about 200 in total. Sure, it’s a little more concentrated than the broad market ETF, but it’s still as reliable as a compass in the woods.

The beauty of this ETF is that it leans heavily into the fastest-growing stocks. Think big, shiny names like Nvidia, Microsoft, and Meta Platforms. Together, these three tech titans account for about one-third of the portfolio, a rather hefty slice of the pie, if you ask me. And since this is a “weighted” index, the larger companies get more of the attention, while smaller, lagging companies are tossed out during the quarterly rebalancing. It’s as if the ETF is always on the lookout for the best and brightest, making sure it only holds the most promising stock stars. The expense ratio? A modest 0.07%, far better than the average 0.93% of its peers.

Now, let me tell you a little secret. If you’d invested $10,000 in the S&P 500 ETF and the S&P 500 Growth ETF a decade ago, you’d be sitting pretty today, with the Growth ETF comfortably outpacing the original index. It’s a tale of growth, and who doesn’t love a good success story?

For many a wise investor, the best approach is to buy both of these ETFs. That way, you’re playing it safe with the broad market ETF while also catching a whiff of the sizzling growth potential of the other. A little bit of both? A wise choice indeed, like mixing two ingredients to make the perfect concoction.

And so, with your trusty $1,000, you can waltz into the world of S&P 500 ETFs with confidence, knowing that your money is marching alongside the giants of the corporate world. 📈

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2025-08-28 16:40