"Investors should also favor value stocks over growth stocks," says BCA Research. One such hallmark is that early-phase business cycle stocks – such as the large-cap value stocks that VVIAX holds – could outperform growth after a long drought. Nonetheless, investors can assume that the 2021 stock market will eventually follow some of the usual hallmarks of a market recovery. It's an understatement to say we're in unusual times. Vanguard Value Index Admiral ( VVIAX (opens in new tab), $47.51) is a low-cost fund that plays on what's expected to be one of the big themes of 2021: value stocks. Even if energy is not a top performer, the sector can add diversity to a portfolio. The top holdings in VDE include big oil companies like Exxon Mobil (XOM). Vanguard Energy ETF (VDE): The energy sector can potentially be a leading sector in the long term, especially if the world continues its reliance on oil and fossil fuels.To take advantage of the historic trend and future growth potential, VGT passively tracks a basket of over 300 technology stocks. Vanguard Information Technology ETF (VGT): Another sector that will likely lead capital markets in the coming decades is technology.population, health stocks could be market leaders for decades to come. Arguably, when considering advances in medicine and the aging of the U.S. When investing in sectors, a long-term investor is wise to find those that have good long-term growth potential. Vanguard Health Care ETF (VHT): As part of your sector exposure, VHT is an outstanding way to get low-cost exposure to the health care sector.You'll also get different types of bonds, including corporate, municipal, and U.S. Aggregate Float Adjusted Index, BND provides exposure to more than 9,000 bonds of various maturities. Vanguard Total Bond ETF (BND): For broad exposure to the U.S.Shareholders also get exposure to emerging markets. Vanguard Total International Stock ETF (VXUS): To extend your stock exposure outside of the U.S., VXUS tracks an index with over 6,000 foreign stocks, most of which are large-caps in Europe.That allows for greater diversification and more control over the allocation for the investor. However, the combination of VOO and VXF can provide more exposure to mid- and small-cap stocks than a total stock index fund would provide. Rather than buy VOO and VXF, some investors prefer to buy a total stock market index fund. Vanguard Extended Market ETF (VXF): To complement VOO, and complete your exposure to the U.S.companies like Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT). When you hold a fund like VOO, you get access to roughly 500 stocks of the largest U.S. Vanguard S&P 500 ETF (VOO): To lay the foundation of your Vanguard ETF portfolio, a low-cost S&P 500 index ETF like VOO is a smart choice.
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