2 Vanguard Funds for Growth and Dividend Investors to Buy and Hold Forever

For investors seeking a balance between growth and income, Vanguard offers two exceptional funds that cater to both growth and dividend investors. These funds, Vanguard Total Stock Market Index (VTSAX) and Vanguard Dividend Appreciation Index (VIG), provide long-term buy-and-hold potential with their low expense ratios, broad diversification, and consistent dividend growth.
Vanguard Total Stock Market Index (VTSAX) is a diversified stock index mutual fund that provides exposure to the entire U.S. stock market, including small-, mid-, and large-cap stocks. With an expense ratio of just 0.04%, VTSAX offers broad market exposure at a low cost. Its top holdings include technology and healthcare giants like Microsoft, Apple, and Johnson & Johnson, providing growth potential through exposure to these market leaders. Additionally, VTSAX offers dividend income, with a yield of around 1.5%, making it an attractive option for investors seeking a mix of growth and income.

Vanguard Dividend Appreciation Index (VIG) is an ETF that focuses on dividend growth, investing in companies with a history of increasing dividends. With an expense ratio of 0.06%, VIG offers exposure to dividend growth stocks at a low cost. Its top holdings include Microsoft, Apple, and Procter & Gamble, providing a mix of growth and income. VIG has a median dividend yield of 1.1% and a 10-year growth rate of 12.7%, making it an attractive option for income-focused investors.

Both VTSAX and VIG offer low-cost, diversified exposure to the market, making them suitable for long-term buy-and-hold strategies. Their consistent dividend growth and broad diversification provide investors with a stable source of income and the potential for capital appreciation. By investing in these funds, growth and dividend investors can build a well-rounded portfolio that caters to their income needs while providing exposure to the broader market.
In conclusion, Vanguard Total Stock Market Index (VTSAX) and Vanguard Dividend Appreciation Index (VIG) are two exceptional funds that cater to both growth and dividend investors. With their low expense ratios, broad diversification, and consistent dividend growth, these funds offer long-term buy-and-hold potential. By investing in these funds, investors can build a well-rounded portfolio that provides a stable source of income and the potential for capital appreciation.