3 Vanguard ETFs to Buy With $2,000 — Build a Buy-and-Hold Portfolio

With $2,000 and a long investment horizon, investors can assemble a low-cost, diversified portfolio using three Vanguard exchange-traded funds (ETFs) suited to a buy-and-hold strategy: Vanguard Total Stock Market ETF (VTI), Vanguard Total International Stock ETF (VXUS) and Vanguard Total Bond Market ETF (BND).

Vanguard Total Stock Market ETF (VTI) delivers broad exposure to the U.S. equity market, spanning large-, mid- and small-cap companies. VTI’s scale and liquidity make it an efficient core holding for long-term growth, offering participation in the full domestic market without the need to pick individual stocks.

Vanguard Total International Stock ETF (VXUS) adds coverage of developed and emerging markets outside the U.S., providing geographic and currency diversification. Including VXUS alongside a U.S.-centric ETF helps smooth region-specific risks and captures growth opportunities across global markets, which can improve portfolio resilience over decades.

Vanguard Total Bond Market ETF (BND) supplies broad, investment-grade fixed-income exposure, combining U.S. Treasuries and corporate bonds. As a ballast, BND can lessen portfolio volatility and produce income during downturns, making it a practical complement to equity holdings for investors with a multi-decade horizon.

A simple allocation for $2,000 could follow a 60/40 equity-to-bond split: $1,200 allocated to equities and $800 to bonds. Within equities, a 75/25 split between VTI and VXUS (for example, $900 in VTI and $300 in VXUS) emphasizes domestic market exposure while maintaining meaningful international diversification. Investors should tailor allocations by age, goals, and risk tolerance.

Why hold these ETFs indefinitely? Each fund represents a broad market segment and is passively managed with low costs and transparent holdings, reducing the need for frequent trading or market timing. Periodic rebalancing keeps the intended risk profile, but otherwise the combination of diversification, low fees and compounding potential supports a long-term, buy-and-hold approach that can serve retirement and wealth-building objectives.