New to Investing? Build Your Portfolio Around These 2 Rock-Solid ETFs

Published: Saturday, November 29, 2025 at 4:03 pm

New Investors: Consider These ETFs for a Solid Portfolio Foundation

For those new to the world of investing, the sheer volume of choices can be daunting. To navigate this landscape and mitigate risk, financial experts often recommend starting with Exchange-Traded Funds (ETFs). These funds offer diversification by providing exposure to a wide range of stocks, reducing the impact of any single stock's performance on your overall portfolio.

Two ETFs stand out as potentially strong foundations for a long-term investment strategy: the Vanguard S&P 500 ETF and the iShares Russell 1000 Growth ETF.

The Vanguard S&P 500 ETF tracks the S&P 500 index, which comprises the 500 leading companies in the U.S. stock market. This ETF offers broad market exposure and benefits from the historical performance of the S&P 500, which has averaged approximately 10% annual returns over decades. The fund's low expense ratio of 0.03% ensures that fees have a minimal impact on returns. The ETF has shown strong performance, rising approximately 14% this year and over 87% in the last five years.

The iShares Russell 1000 Growth ETF focuses on growth stocks, investing in companies expected to grow at a faster rate than the overall market. This fund offers exposure to leading and emerging growth companies, with a significant portion of its holdings in technology giants like Nvidia, Apple, and Microsoft. While this ETF carries slightly more risk than the S&P 500-tracking fund, its potential for higher returns is appealing. The expense ratio is 0.18%. The iShares Russell 1000 Growth ETF has risen 15% this year and more than doubled in value over the past five years, accumulating gains of around 107%.

BNN's Perspective:

Investing in ETFs like these can be a sensible approach for new investors. While past performance is not indicative of future results, the historical track record of the S&P 500 and the potential of growth stocks offer a balanced approach to portfolio building. Investors should always conduct their own research and consider their individual risk tolerance and financial goals before making any investment decisions.

Keywords: ETFs, investing, Vanguard S&P 500 ETF, iShares Russell 1000 Growth ETF, S&P 500, growth stocks, portfolio, stocks, long-term investing, risk, returns, expense ratio, market, finance, investment strategy

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