Vanguard ETFs: A Long-Term Investment Strategy for Stocks and Bonds

Vanguard's investor-centric approach has established it as a leader in low-cost, long-term investment solutions. The company's unique structure treats fund investors as partial owners, resulting in industry-low fees that directly benefit clients.

The Vanguard Total Stock Market ETF (VTI) and Vanguard Total Bond Market ETF (BND) present a compelling duo for constructing a balanced portfolio. A 60/40 allocation between these funds offers exposure to both equity growth potential and fixed-income stability.

Historical data reveals the risk-mitigating power of bond allocations. While a 100% stock portfolio shows higher average returns (10.5%), it suffers dramatic drawdowns (-43.1%). The 60/40 blend maintains respectable growth (8.8% average) while significantly reducing downside risk (-26.6% worst year).

This strategy embodies the fundamental principle of modern portfolio theory: diversification across uncorrelated assets creates more efficient risk-adjusted returns. For investors with $100 to deploy, $60 in VTI and $40 in BND provides instant exposure to the entire U.S. market across both asset classes.