From The Motley Fool · David Dierking · · 1m 30s
If I Were Starting Over in the Stock Market, I'd Put $1,000 in Each of These 4 ETFs
Investor starts over with $1,000 in each of four ETFs for long-term growth.
In brief
Investor starts over with $1,000 in each of four ETFs for long-term growth. The author recommends $1,000 in Vanguard Total Stock Market ETF (VTI), Schwab U.S. Dividend Equity ETF (SCHD), Avantis U.S. Small Cap Value ETF (AVUV), and Schwab U.S. Large-Cap Growth ETF (SCHG) for foundational portfolio building. Originally…
Foundational ETFs for long-term growth
Investors starting over should build a portfolio with broadly diversified, low-cost ETFs that represent their target market.
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) offers ultra-low expense ratio of 0.03% and covers 3,500 stocks across the U.S. equity market.
Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF (SCHD) provides 2.95% dividend yield with an expense ratio of 0.06% and focuses on high-quality dividend stocks.
Avantis U.S. Small Cap Value ETF (AVUV)
The Avantis U.S. Small Cap Value ETF (AVUV) targets high-quality small-cap stocks with a price-to-earnings ratio of around 12 and an expense ratio of 0.25%.
Schwab U.S. Large-Cap Growth ETF (SCHG)
The Schwab U.S. Large-Cap Growth ETF (SCHG) has an expense ratio of 0.04% and focuses on high-growth stocks with a 200-stock portfolio.
Why these four ETFs work together
These ETFs provide balanced exposure to the entire U.S. market, dividend stocks, small-cap value stocks, and large-cap growth stocks for long-term wealth creation.
The short version
The author recommends $1,000 in Vanguard Total Stock Market ETF (VTI), Schwab U.S. Dividend Equity ETF (SCHD), Avantis U.S. Small Cap Value ETF (AVUV), and Schwab U.S. Large-Cap Growth ETF (SCHG) for foundational portfolio building.
