Investors looking for funds that offer both growth potential and steady dividends might want to consider Vanguard funds. Vanguard is known for its low-cost, high-quality investment options that are designed to help investors meet their financial goals. Here are two Vanguard funds that both growth and dividend investors can consider buying and holding for the long term.
The first fund is the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). This fund focuses on companies that have a history of increasing their dividends over time. By investing in these companies, investors can benefit from both capital appreciation and a growing stream of income. With an expense ratio of just 0.06% and a track record of outperforming its benchmark, VIG is a solid choice for investors looking for a mix of growth and dividends.
The second fund is the Vanguard Growth Index Fund (NASDAQMUTFUND: VIGAX). This fund invests in large-cap growth companies that have the potential to deliver strong returns over time. With a low expense ratio of 0.05% and a diversified portfolio of top-performing stocks, VIGAX is a great option for investors seeking growth opportunities while also receiving some dividend income.
Both of these Vanguard funds offer investors the opportunity to build a well-rounded portfolio that can help them achieve their long-term financial goals. By buying and holding these funds forever, investors can benefit from the power of compounding returns and enjoy a steady stream of income through dividends.