The Smart Investor’s Playbook: If you’re serious about building wealth and keeping your future tight, The Smart Investor’s Playbook: 3 Vanguard ETFs to Anchor Your Long-Term Portfolio is your roadmap. These three ETFs are like your all-star lineup—reliable, well-rounded, and built for the long haul.
Whether you’re just getting started or looking to simplify your investment mix, Vanguard has your back with low-cost, high-trust options. Let’s walk through the top picks and how they can set your portfolio up for success for decades to come.
The Smart Investor’s Playbook
| ETF | Focus | Expense Ratio | Yield (Approx.) | Best For |
|---|---|---|---|---|
| VTI – Total Stock Market ETF | Entire U.S. stock market | 0.03% | ~1.5% | Growth, U.S. equity exposure |
| VXUS – Total International ETF | Developed + emerging markets (non-U.S.) | 0.07% | ~3.5% | Global diversification |
| BND – Total Bond Market ETF | U.S. government & corporate bonds | 0.03% | ~3.9% | Income, risk management |
Long-term wealth doesn’t come from luck—it comes from smart, consistent investing. With just these three Vanguard ETFs, you can build a portfolio that grows with you, weathers storms, and sets you up for a secure future.
Stick with it. Add to your investments regularly, don’t panic in downturns, and watch the magic of compounding do its thing. The smartest move you can make today? Get started.
Why These 3 ETFs Matter for Long-Term Wealth
Long-term investing doesn’t need to be complicated. In fact, the simpler the better. That’s why these three Vanguard ETFs make a rock-solid core. They each serve a different purpose:
- VTI gives you growth across the entire U.S. stock market
- VXUS adds global spice and diversification
- BND gives you some calm when the stock market gets rowdy
Together? They offer a full-court press approach to investing.
1. Vanguard Total Stock Market ETF (VTI)
What It Is
VTI tracks the CRSP U.S. Total Market Index, which includes nearly every publicly traded company in the U.S. That means small, medium, and large companies—tech, energy, finance, you name it.
Why It’s Smart
You’re not putting all your eggs in one basket—you’re putting ’em in over 4,000 baskets. That’s some serious diversification. Over the past decade, VTI has consistently returned ~11-12% annually, according to Vanguard performance reports.
Pro Tip
Investing in VTI is like owning a slice of the American economy. If the U.S. grows, so does your wealth. And with a low expense ratio of 0.03%, you’re keeping more of that growth in your pocket.
2. Vanguard Total International Stock ETF (VXUS)
What It Is
VXUS gives you exposure to global stocks outside the U.S., including Europe, Asia, Latin America, and emerging markets. It holds more than 7,000 companies across over 40 countries.
Why It’s Smart
Look, the U.S. is great, but the world doesn’t stop at our borders. International markets can offer unique growth opportunities, especially in tech-savvy or developing regions.
Stat: According to Morningstar, emerging markets have outperformed U.S. markets in various time periods, though they come with more volatility.
Pro Tip
VXUS helps hedge against U.S. market risk. It also adds foreign currency diversification, which can protect your portfolio if the U.S. dollar weakens.
3. Vanguard Total Bond Market ETF (BND)
What It Is
BND is your safety net. It includes U.S. Treasury bonds, corporate bonds, and mortgage-backed securities. It offers income and stability, especially when stocks take a dip.
Why It’s Smart
Bonds balance your risk. While they don’t deliver jaw-dropping returns, they help protect your portfolio when stock markets get bumpy.
According to the U.S. Federal Reserve, the average bond yield in 2024 was around 4%. BND aligns well with that benchmark.
Pro Tip
BND is especially useful as you get closer to retirement. It lowers your portfolio’s volatility and gives you predictable income from interest payments.
The Smart Investor’s Playbook Build a Balanced Portfolio with These 3 ETFs
Here’s a simple breakdown for long-term investors:
Sample Allocation
| Age Group | VTI (Growth) | VXUS (Global) | BND (Bonds) |
|---|---|---|---|
| 20s-30s | 50% | 30% | 20% |
| 40s-50s | 40% | 25% | 35% |
| 60+ | 30% | 20% | 50% |
This approach is flexible. Adjust the bond portion higher as you age to reduce risk.
FAQs On The Smart Investor’s Playbook
Are these ETFs good for beginners?
Heck yes. They’re low-cost, easy to understand, and don’t require constant monitoring.
Do I need to buy all three?
Not necessarily, but combining all three gives you maximum diversification across sectors, regions, and asset types.
How much money do I need to start?
Many brokerages (like Vanguard, Fidelity, and Schwab) offer fractional shares, so you can start with just $50 or less.
What accounts should I use?
Use Roth IRAs, Traditional IRAs, or 401(k)s for tax advantages. For non-retirement savings, a taxable brokerage account works great.
How often should I rebalance?
Once or twice a year is enough. Set calendar reminders and adjust your holdings to stay on target.
Additional Resources
- Vanguard ETF Comparison Tool
- SEC ETF Investor Bulletin
- FINRA ETF Center
- Bogleheads Wiki – Three-Fund Portfolio
