I have always believed that long term buy and hold investing is the best way to build wealth. While there is a natural tendency to focus on short-term investment news and events, putting all that aside and growing quality assets over time is the simplest (and often most successful) solution.
Vanguard is a great broker for almost any investment goal, but it’s especially useful when saving for retirement. Almost every exchange-traded fund (ETF) in its line is widely diversified, very low-cost, and can serve as the cornerstone of a retirement portfolio.
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In most cases, you don’t need a dozen funds or more to be diversified. Broad market Vanguard ETFs often contain hundreds, if not thousands, of different stocks or bonds in one product. Use just a few to target the major asset classes and you have everything you need to reach the retirement bottom line.
Here’s a sample Vanguard portfolio I like that uses three ETFs. If you want simplicity and a portfolio focused entirely on US stocks and bonds, this one checks all three boxes. Since I consider them all basic building blocks of portfolio building, you can use them whether you’re in retirement or still decades away.
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of the Vanguard S&P 500 ETF(NYSEMKT: VOO ) As available is about the US net real equity ETF. It consists of 500 major domestic companies and makes for an ideal core portfolio holding. With $870 billion in assets, it is the largest ETF in the world and carries an expense ratio of just 0.03%.
As I have mentioned many times in the past, I prefer to use it Vanguard Total Stock Market ETF For my US principal equity allocation. I like to have mid and small cap stocks in my portfolio in addition to large and mega cap names. But I certainly understand why people choose to be alone S&P 500. It has undoubtedly performed well over the past few years and there is a degree of comfort in owning one of the largest and most well-established companies.
Dividend stocks aren’t necessarily flashy. But as we have learned so far in 2026, they are doing well in a market environment where the economic outlook is a bit more questionable and investors are not as bullish.
of the Vanguard Dividend Appreciation ETF(NYSEMKT: VIG ) Invest in US stocks that have increased annual dividends for at least 10 straight years. Dividend growth stocks are great for portfolios because companies have shown a commitment to rewarding shareholders over time and continuing to grow those dividends for many years. Additionally, they are likely to demonstrate the financial health to maintain it.
While I think the Vanguard Dividend Appreciation ETF strategy could be improved, I don’t think there’s any question that it targets sustainable, financially healthy companies that are ideal investments for retirement.
of the Vanguard Total Bond Market ETF(NASDAQ: BND ) is an underappreciated fund. Bonds have gotten a bad reputation over the past few years for their lack of returns and their inability to provide more downside protection than stocks during the 2022 bear market.
But bonds are still valuable real long-term holdings. The fund’s 4.2% yield on its portfolio of Treasuries, mortgage-backed securities, and investment-grade corporate bonds provides a meaningful income component that can boost returns over time. Additionally, in many cases, it helps reduce some of the volatility of riskier asset classes.
There are a few factors that make these three ETF portfolios stand out. There is no global description, so you need to add something like this Vanguard All Global Stock ETF or d Vanguard All Global Bond ETF. If you want to add junk bond exposure, the Vanguard High Yield Active ETF will do the trick.
But using any or all of the Vanguard S&P 500 ETF, the Vanguard Dividend Appreciation ETF, and the Vanguard Total Bond Market ETF will put you well on your way to a well-funded, secure retirement.
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David Derking has positions in the Vanguard Dividend Definition ETF, the Vanguard Total Global Stock ETF, and the Vanguard Total Stock Market ETF. The Motley Fool owns and recommends positions in Vanguard Dividend Appreciation ETF, Vanguard S&P 500 ETF, Vanguard Total Bond Market ETF, Vanguard Total International Stock ETF, and Vanguard Total Stock Market ETF. Motley Fool has a disclosure policy.
3 Low-Cost Vanguard ETFs That Make Retirement Investing Easy was originally published by The Motley Fool
