3 of the best ETFs I bought in 2021 | Personal finance
Since this fund aims to follow the stock market as a whole, it is also more likely to recover from downturns. The stock market has a 100% success rate when it comes to bouncing back from crashes, and this ETF is extremely likely to recover if the market crashes as well.
3. Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) is slightly riskier than some other ETFs, but it also has the potential to generate above-average returns. This fund is made up of just under 300 stocks of companies that have the potential for rapid growth.
Fast growing businesses can be riskier because they are often more volatile than older, more established organizations. However, they also generally achieve higher returns than their more stable counterparts.
Since its inception in 2004, this ETF has earned an average annual return of nearly 12% per year. For comparison, the S&P 500 has historically had average returns of around 10% per year, and the Vanguard Total Stock Market ETF has averaged returns of just under 9% per year.
The Vanguard Growth ETF can help your investments grow faster, but because it comes with higher levels of risk, it’s important to make sure the rest of your portfolio is properly diversified. It may be wise to invest, for example, in the Vanguard S&P 500 ETF as well as the Growth ETF to maximize your returns while minimizing risk.