2 ETFs I’d Buy in November and Hold for the Next 20 Years

Want to invest but don’t want to spend all your spare time researching the stock market? No need to fear. You could be a perfect candidate for an index exchange-traded fund (ETF). These funds hold a wide variety of stocks, giving investors exposure to a ton of great companies, meaning they can spend less time managing their portfolios.

By owning just two ETFs — one international and one domestic — a person can cover the whole globe. Let’s learn about how the Vanguard Morningstar Total Stock Market ETF (VTI +0.39%) and the Vanguard Total International Stock ETF (VXUS +0.15%) can serve as an excellent starting point for a long-term investment strategy.

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Start with American businesses

We’ll start here: What does VTI do? In short, it owns a broad collection of American stocks, around 3,500 in total. All segments of the U.S. economy are represented, as are stocks of all sizes. Its top holdings include major tech stocks like Nvidia, Apple, and Microsoft. Indeed, its top-10 holdings account for about 35% of the fund’s total assets. Beyond these giants, the fund also holds many smaller stocks across sectors like financials, healthcare, industrials, and consumer goods.

The benefit for an investor should be clear: By buying shares of this one ETF, a person gains exposure to thousands of businesses, spreading risk across many stocks and saving tremendous time that would have been spent buying the stocks separately.

That said, the fund’s top-heavy nature creates one problem: Much of its performance comes from the big tech stocks that make up a large share of its assets. Those large companies have the greatest influence on the fund’s returns. So, in essence, as the tech sector goes, so goes VTI.

In recent years, that has meant excellent returns. VTI has generated a total return of 65% over the last five years, equating to a compound annual growth rate of 10.6%. But if big tech falters, the fund could face turbulence.

VTI – Vanguard Morningstar Total Stock Market ETF

$361.93+$1.41 (+0.39%)

NYSEMKT · As of 4:00 PM ET 11/06/26

Give the rest of the world a place

To build a truly global stock portfolio, you’ll need to look beyond U.S. borders. That’s where VXUS comes in. It is an international ETF that holds an eye-popping total of nearly 9,000 stocks headquartered outside the U.S. Geographically, the fund spans continents. The Asia-Pacific region leads with roughly 49% of fund assets, followed by Europe (38%), then North and South America, excluding the U.S. (10%).

Investors should consider adding exposure outside the U.S. because no one knows how the global economy will perform over the next 10 or 20 years. While the U.S. has performed better in recent decades, that trend could reverse. It’s best for investors to spread risk across many countries, capturing exposure to many markets, any of which could catch fire.

Granted, owning international stocks still comes with risks. Currency fluctuations, geopolitical risks, and trade and regulatory impacts can all affect returns.

VXUS – Vanguard Total International Stock ETF

$80.92+$0.12 (+0.15%)

NASDAQ · As of 4:00 PM ET 11/06/26

Make this a plan you can stick with

One of the main appeals of index ETFs is their affordability. Almost all ETFs charge fees, expressed as an annual expense ratio. The fees for both VTI and VXUS are some of the lowest in the ETF universe. VTI has an expense ratio of 0.03%, while VXUS’ is 0.05%. For context, a person who invests $10,000 in each fund should expect to pay $3 in annual fees for their VTI shares and $5 for their VXUS shares.

One hypothetical portfolio a person could construct would allocate $1,000 across the two funds. Say $600 in VTI and $400 in VXUS. This would give them exposure to both domestic and international stocks, with a slight tilt toward U.S.-based stocks. Furthermore, if a person committed to a regular contribution, say, $100 per month, they could significantly increase their total over decades. Those contributions alone would total $13,000 after 10 years and $25,000 after 20 years.

Why own VTI and VXUS

Broad ownership, low costs, and fewer recurring investment decisions: These are major selling points for a person considering a VTI/VXUS investment strategy. Granted, there are far more elaborate ways to invest, and in many cases, those ways could generate better returns. However, for a person who wants to invest — and everyone who can absolutely should do it — a hybrid VTI/VXUS investment strategy is a great starting point. That’s why VTI and VXUS are the 2 ETFs I’d buy this November.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.