Investing often feels like a waiting game. Many new investors hesitate to enter the market, hoping for a pullback or a better entry point.
The reality, however, is that waiting usually costs more than it saves. History shows that markets reach new highs far more frequently than investors expect, and once prices climb, they often never revisit old lows.
A study by J.P. Morgan revealed that since 1950, the S&P 500 hit new highs on about 7% of trading days, and in nearly a third of those instances, the index never traded below that level again.
That’s why strategies like dollar-cost averaging are so effective. Instead of trying to time the market, you consistently invest at regular intervals, letting the power of compounding work in your favor.
And when it comes to long-term investing, exchange-traded funds (ETFs) are one of the most efficient tools available.
They provide diversification, low costs, and exposure to top-performing companies. Among the many options available, Vanguard ETFs remain some of the best choices for building lasting wealth.
Here are two of the strongest Vanguard ETFs to consider buying with $1,000 today and holding forever.
1. Vanguard S&P 500 ETF (VOO) – The Ultimate Core Holding
If you could only own one ETF, the Vanguard S&P 500 ETF (VOO) would be a strong candidate. This fund mirrors the performance of the S&P 500 index, instantly giving you ownership in 500 of the largest U.S. companies.
These are not just any companies – they include market leaders like Apple, Microsoft, Nvidia, Alphabet, and Amazon, which together account for nearly 29% of the index.
The brilliance of this Vanguard ETF lies in its design. It automatically adapts as market leaders change. When a company rises in strength, its weight in the index naturally grows, while weaker performers gradually decline in influence.
This “survival-of-the-fittest” approach ensures that investors remain consistently aligned with market winners.
The performance speaks for itself. Over the past decade, the Vanguard S&P 500 ETF has delivered an average annual return of 13.6%, navigating through both bull and bear markets.
Even more impressive, it charges a rock-bottom expense ratio of just 0.03%, making it one of the cheapest ways to gain diversified exposure to U.S. equities.
For investors seeking a one-stop solution to wealth building, VOO stands out. It offers broad diversification, resilience, and excellent long-term performance, making it a true buy-and-hold investment.
2. Vanguard Growth ETF (VUG) – A Bet on Innovation
While the Vanguard S&P 500 ETF provides broad exposure, some investors want to tilt their portfolios toward higher-growth opportunities. That’s where the Vanguard Growth ETF (VUG) comes in.
This ETF focuses on large-cap growth companies with strong sales and earnings momentum. Naturally, this means the fund leans heavily into technology and consumer discretionary stocks, sectors that have been the engine of market growth over the last decade.
Its top holdings are similar to the S&P 500, but with heavier weightings. For example, Nvidia makes up 12.6% of the Vanguard Growth ETF, compared to only 8.1% in the S&P 500 ETF.
This growth tilt has paid off handsomely. Over the past ten years, the Vanguard Growth ETF delivered average annual returns of 16.3%, outpacing the broader market.
While it comes with slightly less diversification compared to VOO, it compensates with higher upside potential. The fund remains inexpensive as well, with an expense ratio of just 0.04%, far cheaper than actively managed alternatives.
If you believe that technology, innovation, and consumer demand will continue to drive global growth, then VUG is the ETF for you.
It offers concentrated exposure to companies shaping the future, while still maintaining the low-cost advantage that Vanguard is known for.
Why These Vanguard ETFs Are Built for the Long Haul
Both VOO and VUG represent two distinct but complementary strategies. The Vanguard S&P 500 ETF provides stability, broad diversification, and reliable long-term growth.
On the other hand, the Vanguard Growth ETF offers higher potential returns by focusing on innovative, fast-growing companies.
For investors starting with $1,000, these two Vanguard ETFs provide a balanced foundation—one that blends safety with opportunity.
By holding them over the long term and consistently investing more through dollar-cost averaging, you can harness the power of compounding and market growth.
The key takeaway is simple: trying to time the market rarely works. Instead, focus on building a portfolio with proven, low-cost ETFs like these.
Over time, patience and consistency will reward you more than waiting for the “perfect” entry point.