2 Vanguard ETFs That Can Be Safe Buys in 2025

As the global economy continues to evolve, investors are always on the lookout for safe and profitable investment opportunities. In 2025, two Vanguard ETFs stand out as potential safe buys: the Vanguard Real Estate ETF (VNQ) and the Vanguard Russell 2000 ETF (VTWO). Both ETFs offer unique advantages and align with broader market trends, making them attractive options for investors seeking long-term growth and stability.

The Vanguard Real Estate ETF (VNQ) invests in a portfolio of real estate stocks, primarily equity real estate investment trusts (REITs). REITs own physical properties, providing exposure to the real estate sector. With a low expense ratio of 0.13%, VNQ offers a cost-effective way to invest in real estate. The fund's top holdings include Prologis (PLD), American Tower (AMT), Equinix (EQIX), and Welltower (WELL). REITs tend to perform well in a low-interest-rate environment, making VNQ an attractive option as the Federal Reserve is expected to lower rates in 2025.

The Vanguard Russell 2000 ETF (VTWO) provides exposure to small-cap stocks, which have historically outperformed large-cap stocks over the long term. The fund tracks the Russell 2000 Index, which consists of the smallest 2,000 companies in the Russell 3000 Index. With an expense ratio of 0.19%, VTWO is an affordable way to gain exposure to small-cap stocks. Small-cap stocks tend to be more sensitive to economic cycles and can benefit from a growing economy, making VTWO a suitable choice for investors seeking growth potential.

In a diversified portfolio, VNQ and VTWO can complement other asset classes and sectors by providing exposure to real estate and small-cap stocks, respectively. Real estate and small-cap stocks have historically had a low correlation with other asset classes, such as bonds and large-cap stocks, making them valuable additions to a diversified portfolio. By including VNQ and VTWO in a portfolio, investors can achieve a balance of risk and return, potentially enhancing overall portfolio performance.

In conclusion, the Vanguard Real Estate ETF (VNQ) and the Vanguard Russell 2000 ETF (VTWO) are two ETFs that can be safe buys in 2025. Both ETFs offer targeted exposure to specific sectors at low costs, and their potential to benefit from the Fed's rate-cutting cycle and the Trump administration's policies make them stand out as attractive options for investors seeking long-term growth and stability. As the global economy continues to evolve, these ETFs provide a solid foundation for a diversified investment portfolio.