Stocks – Two Stocks In The Stock Market That Are Set To Give You Handsome Returns, No Matter Which Direction The Market Might be Going .. Just Set & Go ..

Spread the love

The Power of a “Set and Forget” Portfolio

In today’s noisy market—where headlines shift by the hour and volatility tests every investor’s patience—there’s a quiet beauty in simplicity. Many successful investors have discovered that the best strategy isn’t about constant trading or chasing the latest trends. Instead, it’s about owning a few well-chosen, low-cost index funds that quietly compound wealth in the background.

Vanguard, a pioneer in index investing, has long offered some of the world’s most efficient, investor-friendly funds. For those who prefer to “buy once and hold for decades,” two particular Vanguard exchange-traded funds (ETFs) stand out. They combine rock-bottom fees, broad diversification, and long-term reliability—three pillars that support lasting wealth creation.

The following two ETFs can form the backbone of a set-and-forget strategy suitable for nearly any investor, from the cautious beginner to the disciplined retiree.

1. Vanguard Total Stock Market ETF (VTI): The Core of U.S. Growth

If you could only choose one fund to represent the U.S. economy, VTI would be a leading contender. The Vanguard Total Stock Market ETF captures the entire American stock market in a single trade. It holds more than 3,500 companies, spanning every major sector—technology, healthcare, finance, energy, consumer goods, and more.

Broad Exposure at Minimal Cost

The strength of VTI lies in its comprehensiveness. It doesn’t just own the giants like Apple, Microsoft, or Amazon—it also includes mid-caps and small-caps, the innovative up-and-comers that could become tomorrow’s blue chips. This wide exposure gives investors instant diversification across company sizes and industries, smoothing out volatility over time.

Its expense ratio of just 0.03% means that for every $10,000 you invest, you’ll pay a mere $3 annually in fees. In the world of investing, every fraction of a percent matters. Over decades, those savings compound into thousands of extra dollars that stay in your pocket instead of going to management costs.

Historical Performance and Stability

Since its inception in 2001, VTI has delivered long-term returns closely tracking the performance of the entire U.S. stock market. During periods of economic expansion, it captures the upside of growth stocks; during downturns, its broad base cushions against the worst losses compared to narrower funds.

It’s also incredibly liquid, trading with tight spreads and heavy daily volume, which makes it efficient for investors of all sizes. Whether you’re adding small contributions every month or investing a lump sum, VTI adapts seamlessly.

Ideal Use in a Portfolio

For many investors, VTI can serve as the core holding—the foundation upon which everything else is built. Pairing it with an international fund or a bond ETF can create a fully balanced portfolio that requires almost no maintenance.

Think of VTI as the steady engine of your investment machine—reliable, cost-effective, and perfectly aligned with long-term American growth.

2. Vanguard Total International Stock ETF (VXUS): Global Diversification in One Step

While U.S. markets dominate headlines, they represent only about 60% of global equity value. That means nearly 40% of the world’s investment opportunity lies beyond U.S. borders. Enter VXUS, the Vanguard Total International Stock ETF, a one-stop solution for investors seeking exposure to the rest of the world.

A World Beyond Wall Street

VXUS holds over 7,000 stocks across both developed and emerging markets—spanning Europe, Asia, Latin America, and beyond. Its top holdings include household names like Nestlé, Toyota, Samsung, and Taiwan Semiconductor, along with smaller companies that drive local economies.

By investing in VXUS, you’re gaining access to regions with different growth cycles, currencies, and economic drivers. This global diversification helps reduce risk. When the U.S. market experiences a downturn, international markets may be in a different phase, potentially offsetting losses and keeping portfolio volatility in check.

Expense Ratio and Long-Term Efficiency

With an expense ratio of just 0.07%, VXUS remains one of the most cost-effective ways to invest globally. Similar international funds often charge two or three times more in management fees. Vanguard’s scale and not-for-profit structure allow it to pass those savings directly to investors.

Although VXUS may lag U.S. markets in some years, international diversification has proven essential across long-term cycles. Currency shifts, emerging-market growth, and global innovation all play roles that U.S. investors would otherwise miss entirely.

A Natural Companion to VTI

When paired with VTI, VXUS completes the picture. Together, they provide exposure to virtually every investable stock in the world. Investors who allocate, for example, 60% to VTI and 40% to VXUS effectively own a low-cost global equity portfolio that mirrors worldwide economic growth.

This mix can be held for decades with minimal rebalancing—perhaps once or twice a year—and still deliver competitive, risk-adjusted returns compared to most actively managed strategies.

The Advantages of the “Set and Forget” Strategy

1. Compounding Without Interruption

The biggest enemy of wealth isn’t market volatility—it’s human emotion. Investors often buy high during euphoria and sell low during panic. A set-and-forget strategy removes that temptation by keeping you invested regardless of short-term noise.

VTI and VXUS automatically capture market growth through reinvested dividends and price appreciation, allowing compounding to do the heavy lifting.

2. Lower Costs, Higher Returns

Decades of research show that low-cost index funds consistently outperform higher-fee active funds over the long run. The less you pay in expenses and taxes, the more of your return you keep. Vanguard’s mission has always been to make investing affordable and transparent—and these ETFs are perfect examples.

3. Tax Efficiency

ETFs are inherently more tax-efficient than mutual funds because of how they’re structured. They minimize capital-gain distributions and allow investors to defer taxes until the moment they sell shares. This makes them ideal for taxable brokerage accounts, retirement accounts, or even long-term trust portfolios.

4. Time Freedom

With a set-and-forget approach, you don’t need to watch the market daily or chase performance. Your time is freed up to focus on career, family, or personal pursuits—knowing that your investments are quietly compounding in the background.

That peace of mind, for many investors, is priceless.

Risks to Keep in Perspective

No investment is without risk. VTI and VXUS still fluctuate with the global economy. Recessions, geopolitical tensions, and currency changes can cause short-term losses. However, history shows that broad, diversified stock funds like these have recovered from every downturn given enough time.

Investors should consider their time horizon and risk tolerance. If you’ll need your money within the next few years, a mix that includes bond ETFs—such as Vanguard Total Bond Market ETF (BND)—can add stability.

But for long-term investors focused on 10, 20, or 30 years ahead, staying invested in VTI and VXUS through market cycles remains one of the simplest and most proven paths to growth.

How to Build a Simple Two-Fund Portfolio

Creating a globally diversified portfolio with these two ETFs is straightforward:

Open an account at a brokerage like Vanguard, Fidelity, or Charles Schwab.
Decide your allocation—for example, 60% VTI and 40% VXUS.
Invest consistently, whether monthly or quarterly, using automatic contributions.
Rebalance periodically (once a year is enough) to maintain your chosen ratio.
Stay the course. Ignore market noise, news cycles, and short-term fluctuations.

This approach ensures that your portfolio grows with the global economy while minimizing the time, effort, and cost associated with active investing.

Why Vanguard? A Legacy of Investor Focus

Founded by John C. Bogle, Vanguard revolutionized the investment world by introducing the first index mutual fund in 1976. His philosophy was simple but radical at the time: instead of trying to beat the market, investors should aim to own it.

Vanguard’s structure—owned by its investors rather than outside shareholders—means its incentives align directly with yours. Any profits are returned to fund holders in the form of lower expenses. That’s why its ETFs, including VTI and VXUS, are consistently among the cheapest in the industry.

For long-term investors seeking efficiency, trust, and transparency, Vanguard remains the gold standard.

Final Thoughts: Simplicity Wins

Investing doesn’t need to be complicated to be successful. In fact, simplicity is often the most powerful strategy of all. With VTI and VXUS, you can build a globally diversified, low-cost portfolio that mirrors the performance of the world’s markets—all without the stress of constant management.

Over time, this disciplined, hands-off approach can outperform most active investors while freeing you from the emotional ups and downs of the market.

Two funds. One strategy. A lifetime of growth.

That’s the true essence of “set and forget” investing.

8 responses to “Stocks – Two Stocks In The Stock Market That Are Set To Give You Handsome Returns, No Matter Which Direction The Market Might be Going .. Just Set & Go ..”