Successful stock and bond investing doesn’t have to be overly complicated. The sharp rise in the popularity of exchange-traded funds, or ETFs, over the past 30 years proves this point.
ETFs can provide instant diversification across a wide array of economic sectors or an easy way to gain exposure to a particular theme. However, they can vary dramatically in their expense ratios or the cost the fund charges investors for owning it.
For example, the average expense ratio across the diverse ETF universe is 0.47%. This means that the average fund charges $47 for every $10,000 invested on an annual basis. Vanguard ETFs, on the other hand, sport expense ratios that are 83% lower than the industry average, making them an exceptionally low-cost vehicle for stock and bond investors.
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Here’s a brief overview of two growth-oriented Vanguard ETFs that stand out…