ETFs

Exchange-traded fund (ETF) investing removes the guesswork from portfolio construction. Rather than researching dozens of companies and hoping your picks outperform, ETFs deliver instant diversification across hundreds or thousands of stocks with a single purchase. The costs stay low — often just a few dollars per $10,000 invested each year — and ETFs eliminate the mistakes that hurt individual stock pickers who panic during market drops or chase hot stocks at the wrong time.

Among fund families, Vanguard deserves special attention. Fund investors actually own the management company itself, which means Vanguard works for shareholders instead of outside profit-seekers. This setup keeps costs far below what most competitors charge. Lower costs mean more money stays in your account, and those savings add up to significantly higher returns over decades.

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Three Vanguard ETFs stand out as core holdings for investors building wealth over time. Here’s a brief overview of each fund and how it may fit into a well-diversified portfolio.

The everything U.S. stock fund

Vanguard Total Stock Market ETF (VTI 0.47%) tracks nearly 100% of the investable U.S. equity market through ownership of roughly 3,500 stocks spanning large-cap giants down to tiny specialists. The fund captures the full range of American business — from Nvidia powering the artificial intelligence (AI) revolution at 6.5% of assets to small regional banks and industrial firms that barely move the needle individually but collectively represent substantial economic activity.

The Vanguard Total Stock Market ETF sports an expense ratio of just 0.03% annually while delivering a 1.11% annualized yield and 14.7% average returns over the past 10 years. That outstanding performance reflects the advantage of owning everything rather than trying to pick winners.

Furthermore, the fund automatically adjusts as companies grow or shrink, ensuring Microsoft and Apple earn their positions through market performance rather than manager guesswork. For investors seeking one fund that covers the entire U.S. market, the Vanguard Total Stock Market ETF delivers complete coverage at rock-bottom cost.

The global diversification play

Vanguard Total International Stock ETF (VXUS 0.86%) covers what U.S.-only portfolios miss. The fund holds over 8,600 stocks from developed and emerging markets outside the U.S., creating exposure to economies and industries where American companies operate less.

Top holdings include Taiwan Semiconductor Manufacturing at 2.46% — the world’s leading chip manufacturer — along with Chinese tech giants Tencent and Alibaba, European leaders like ASML and SAP, and thousands of mid-sized firms across Asia, Europe, and Latin America.

The Vanguard Total International Stock ETF costs just 0.05% per year, delivers a 2.78% yield that runs well above most domestic funds, and has posted 8.4% average annual returns over the past 10 years. International stocks have trailed U.S. returns recently, but these markets trade at cheaper prices and offer diversification benefits when domestic momentum eventually reverses.

The fund’s massive holding count prevents too much concentration in any single company, while the higher yield provides current income that can be reinvested or spent. For portfolios weighted too heavily toward U.S. stocks, this fund provides geographic balance.

The technology concentration play

Vanguard Information Technology ETF (VGT 0.77%) narrows its focus to the main sector driving market returns — technology. The fund holds roughly 316 stocks classified under information technology — software, hardware, semiconductors, and IT services — with Nvidia, Microsoft, and Apple combining for about 44% of total assets. That concentration creates higher ups and downs but also captures the ongoing shift toward digital infrastructure, AI, and cloud computing that defines modern economic growth.

The Vanguard Information Technology ETF charges 0.09% annually, yields just 0.4% as tech companies reinvest cash into growth rather than paying dividends, and has delivered exceptional 23.4% average annual returns over the past 10 years. That performance reflects tech dominance — technology now makes up roughly 30% of the benchmark S&P 500, and this fund provides pure exposure without watering it down with utilities or consumer staples.

The risk comes from concentration. When tech sells off, this fund falls harder than diversified alternatives. But for investors who believe software continues taking over more industries and AI represents real change rather than hype, this fund offers direct access to the companies building that future.

Vanguard has built a business with the long-term investor in mind. Investors in its funds aren’t just clients, but part owners of the company. That’s why it has some of the lowest fees in the industry, as it passes profits on to its investors through lower fees on its funds.

You can buy and hold most Vanguard funds forever. A great pairing is the Vanguard Total Market Index (VTI -2.69%) and the Vanguard Total Bond Market ETF (BND 0.40%), as together they cover both major asset classes: stocks and bonds. With these two ETFs, you can build a simple 60/40 portfolio — $60 into VTI and $40 into BND for every $100 invested. Here’s why this is an ideal combination for long-term investors.

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The 60/40 portfolio

Investing in stocks is a great way to grow your wealth over the long term. However, stocks can be volatile. That’s why most financial advisors recommend that investors further diversify their portfolio by adding some bonds into the mix.

We can see how increasing a portfolio’s allocation to bonds can steadily lower the risk of having a terrible year:

Data source: Vanguard. NOTE: Return calculations from 1926 through 2024.

The sweet spot has historically been the 60/40 mix. It offers an attractive return (8.8% annually) while significantly reducing volatility and risk.

Broad exposure to the U.S. stock market

The Vanguard Total Stock Market ETF is one of the simplest ways to invest in the stock market. It tracks the CRSP US Total Market Index, which measures the performance of all stocks on the major U.S. exchanges. The fund currently holds over 3,500 stocks, providing investors with broad exposure to the entire U.S. market.

It doesn’t buy the same amount of every single stock. It holds more of the largest companies by market cap. Its top five holdings currently are:

1. Nvidia (6.5% allocation)
2. Microsoft (6.1%)
3. Apple (5.6%)
4. Amazon (3.5%)
5. Meta Platforms (2.6%)

That allocation provides greater exposure to the largest and most dominant companies in the country.

This ETF has produced solid returns throughout its history:

Data source: Vanguard.

As the chart shows, the fund’s returns have closely tracked those of the benchmark index it follows. That’s due to its ultra-low ETF expense ratio of 0.03%. At that rate, it would only cost you about $0.02 in management fees each year for every $60 you invest in the fund.

Broad exposure to the U.S. bond market

The Vanguard Total Bond Market Fund provides investors with broad exposure to the taxable investment-grade, U.S. dollar-denominated bond market. The fund holds high-quality bonds issued by the U.S. government, corporations, and foreign entities. It excludes tax-exempt bonds (e.g., municipal bonds), inflation-protected bonds (e.g., I-Bonds and TIPS), and non-investment-grade bonds (e.g., junk bonds).

This fund currently holds nearly 11,400 bonds with varying maturities (averaging over eight years) from numerous issuers, including U.S. Treasury securities, government-backed mortgages, corporations, and foreign entities.

Bonds provide investors with several benefits. They generate fixed income from bond interest payments (BND currently has a yield of more than 4%). They also help diversify a portfolio, thereby lowering its risk profile.

However, bonds do have much lower returns compared to stocks, especially in more recent decades due to lower interest rates:

Data source: Vanguard.

This ETF also does an excellent job of mirroring the returns of its benchmark, thanks to its ultra-low fees (0.03% ETF expense ratio). At that rate, you’d only pay $0.01 per year in fees for every $40 invested in the fund. The low fees enable investors to keep more of the interest income generated by the bonds held by the fund.

A great pairing

These two Vanguard ETFs complement each other well, offering a balanced approach between risk and reward. The Vanguard Total Stock Market ETF provides broad exposure to the U.S. stock market, while the Vanguard Total Bond ETF offers access to high-quality U.S. dollar bonds. This combination enables investors to participate in the growth of stocks while receiving income and stability from bonds. Investing $100 in these two Vanguard ETFs is a truly set-and-forget investment strategy.

Megacap technology stocks have been leading the market higher, and the odds of that happening again next year are high. As such, the Vanguard Growth ETF (VUG -3.28%) and the Invesco QQQ Trust (QQQ -3.47%) are both well positioned to once again outperform the S&P 500 in 2026.

Despite a few pauses along the way, this market has been powered by growth stocks, especially those tied to artificial intelligence (AI). Nvidia (NASDAQ: NVDA) has been one of the biggest winners, as it’s grown to become the largest company in the world with its graphics processing units (GPUs) powering the AI infrastructure boom. Meanwhile, cloud computing leaders, such as Microsoft (NASDAQ: MSFT), Amazon, and Alphabet, have all benefited from insatiable growth coming from AI demand.

They are all cash-rich, entrenched companies that have built scale and network effects that competitors will struggle to catch. They’re also the heaviest-weighted stocks in the market-cap-weighted growth exchange-traded funds (ETFs), which is why the Vanguard Growth ETF and Invesco QQQ Trust have done so well when tech has been in the driver’s seat. Both are built to let their winners run, and both have consistently delivered better returns than the S&P 500 over the past decade.

Even at record highs, I wouldn’t sit on the sidelines waiting for a correction. If you try to time a pullback, you risk missing the gains these leaders keep generating. Dollar-cost averaging into these ETFs remains one of the smartest ways to play this trend and stay invested without worrying about short-term swings.

Let’s take a closer look at why these ETFs are poised to once again outperform in 2026.

Vanguard Growth ETF

An investment in the Vanguard Growth ETF is a simple bet that large-cap growth stocks will continue to outperform value stocks. The ETF tracks the performance of the CRSP US Large Cap Growth Index, which is essentially the growth side of the S&P 500.

Its top 10 holdings are very similar to the S&P 500, but you’re getting these stocks in a much higher concentration, since it doesn’t hold any value stocks. The fund’s top 10 holdings make up more than 60% of its portfolio, compared with less than 40% for the S&P 500 itself. Meanwhile, over 60% of its holdings are in tech stocks, while a third of the S&P is made up of technology names.

That concentration is exactly why it tends to outperform when tech and growth stocks lead the market. It has been outpacing the broader index for years. Over the past decade, it’s generated an average annual return of 18% compared to 15.3% for the S&P 500. While that may not sound like a lot, with a $10,000 investment, that would be the difference between an ending balance of around $52,300 versus $41,500 for an ETF that tracks the S&P 500.

Image source: Getty Images.

Invesco QQQ Trust

Another ETF that looks well positioned to outperform the S&P 500 again in 2026 is the Invesco QQQ Trust. It tracks the Nasdaq-100, which focuses on the largest non-financial names on the Nasdaq exchange. The result is a tech-heavy growth fund where more than 60% of its assets sit in technology and much of the rest is in other growth areas.

Just like the S&P 500, the Nasdaq-100 is a market-cap-weighted index that is designed to let its winners run. So, when stocks like Nvidia and Microsoft soar, they naturally become a larger part of the ETF without any manager stepping in to rebalance. That means the fund rewards its winners and automatically reduces exposure to companies that fall behind.

The Invesco QQQ Trust’s track record is outstanding. Over the past 10 years, it’s returned around 20.3% annually, and a $10,000 investment over that period would be worth around $63,600. Even more impressively, the ETF has topped the S&P 500 more than 87% of the time on a 12-month rolling basis over this period.

As such, it’s not too bold of prediction that it will once again outperform next year.

Many investors don’t readily think of dividends and tech together, but there’s more than meets the eye with this union.

Talk to enough experienced dividend investors and chances are they’ll rattle off sectors like consumer staples, healthcare and utilities as some of their favorite payout destinations. Odds are equally good that they won’t mention technology.

That’s understandable, because the 12-month distribution rate on the largest exchange traded fund (ETF) tracking the tech-heavy Nasdaq-100 Index is a piddly 0.48%Obviously nothing to write home about, but that data point obfuscates tech’s status as a rising payout growth spot. In fact, in dollar terms, Microsoft (MSFT 0.78%) and Apple (AAPL 0.42%) are two of the biggest dividend payers in the S&P 500.

Image source: Getty Images

Apple and Microsoft are widely held stocks, but in what amounts to a pleasant surprise for equity income investors, the duo is an appetizer in the tech dividend equation. Seven-course meals are available with the First Trust NASDAQ Technology Dividend Index Fund (TDIV 0.79%) and the ProShares S&P Technology Dividend Aristocrats ETF (TDV 0.81%).

Similar tickers, but different methodologies. So, let’s examine how these ETFs live up to their tech dividend billings.

TDV: A familiar playbook

As its name implies, the ProShares S&P Technology Dividend Aristocrats ETF has Dividend Aristocrats DNA. The TDV follows the S&P Technology Dividend Aristocrats – a collection of tech companies that have increased payouts for at least seven straight years.

With tech and dividends still considered newlyweds, that index requirement sounds confining, but TDV holds 38 stocks. That roster size is aided by index flexibility that allows for “tech-related” companies. Mastercard (MA 0.42%) and Visa (V 1.39%) being prime examples.

If there’s a rub with TDV’s plumbing, it’s that the dividend increase streak requirement precludes some big names from entering the index. For example, Alphabet (GOOG -0.98%) and Nvidia (NVDA 0.24%) are dividend payers, but they haven’t increased payouts for seven straight years, so they’re not yet candidates for TDV admission.

TDV has points in its favor, including equally weighting its holdings. That means the ETF can be an income-generating complement to stakes in tech funds that weigh components by market capitalization – many of which have rosters where a small number of stocks command whopping percentages of the portfolios.

TDIV: Tech dividend flexibility

While TDV’s dividend increase streak mandate has a country club membership feel to it, the First Trust NASDAQ Technology Dividend Index Fund has its own elements of exclusivity. The fund follows the Nasdaq Technology Dividend™ Index, which has several rules dividend investors need to acknowledge. Those include requiring member firms to have paid a dividend over the past year, no payout cuts over that time and a minimum yield of 0.50%.

By eschewing the payout increase streak protocol, TDIV sports a significantly larger roster than its rival – 94 holdings to be precise. There’s another big difference between the tech dividend ETFs. TDIV holdings are dividend value-weighted. In plain English, the ETF’s index places added emphasis on stocks with big dividends and massive market caps. Hence, Broadcom (AVGO 0.88%), Oracle (ORCL 0.84%) and Microsoft combine for nearly a quarter of the ETF’s weight. TDIV has a different way of doing things, but it’s hard to argue with its performance since inception in August 2012.

There are other marquee differences between TDIV and its nearest competitor. Notably, the First Trust ETF can hold international stocks, some of which have been additive to performance, and 20% of its portfolio can be allocated to communication services stocks. The latter point is pertinent because if Alphabet and Meta Platforms (META -1.08%) increase their payouts enough to drive their yields to 0.50%, those stocks would be eligible for TDIV admittance, perhaps increasing the ETF’s growth profile along the way.

Different tech dividend strokes for different folks

For fee-conscious investors, TDV is an appealing option because its annual expense ratio is 0.45%, or $45 on a $10,000 position, compared to TDIV’s 0.50%, but fee tussles aren’t the end ETF comparisons. Smart investors know there’s more to the story.

The ProShares ETF may be more appropriate for investors seeking documented dividend dependability via an instrument that as currently constructed, leans into mature, older guard technology companies. Plus, the fund’s equal-weight methodology may be attractive at a time when so many cap-weighted indexes are heavily concentrated in a small number of stocks.

On the other hand, TDIV is perhaps the better choice for growth investors that want a dash of income. Past performance isn’t a guarantee of future returns, but it shouldn’t be ignored that over the past three years, TDIV’s returns and volatility traits stacked up well against some traditional tech ETFs, indicating its flexibility and index mechanics play in investors’ favor.

Vanguard has a long history of offering a variety of great exchange-traded funds (ETFs) that not only give you exposure to a variety of investments, but also do it at a a very low cost. Most of Vanguard’s ETF charge industry-low expense ratios, allowing you to keep more of the investment returns you make.

But which Vanguard ETFs should you consider, if you’ve got $1,000 to invest today? Here are three great options — including one that’s one of my top holdings.

Image source: Getty Images.

1. Vanguard S&P 500 ETF: Buy a whole basket of stocks

Legendary investor Warren Buffett recommends that most investors put their money into S&P 500 index funds because they provide exposure to the biggest companies and do so at a very low cost. He even went so far as to recommend one such fund in a Berkshire Hathaway annual letter, noting, “I suggest Vanguard’s.”

Buffett was referring to the Vanguard S&P 500 ETF (VOO 0.59%), which invests in stocks in the S&P 500 and has the goal of closely tracking the index’s returns. This fund is personally one of my largest holdings and is a great option for investors who want to put money into stocks but would rather not have to make regular changes to their investment strategy.

Aside from being a great way to invest in a wide variety of stocks across all sectors, you’ll get the added benefit of one of the cheapest expense ratios available. The Vanguard S&P 500 ETF charges just 0.03% in annual fees, which works out to be just $0.30 for every $1,000 invested.

2. Vanguard Information Technology ETF: Ride the tech wave

The Vanguard Information Technology ETF (VGT 0.25%) is designed for investors who want to focus their investment strategy on technology companies, while still spreading out some of the risk. The fund tracks the MSCI US Investable Market Information Technology 25/50 index, which includes more than 300 small- and large-cap technology companies.

That’s important because it means the Vanguard Information Technology ETF helps you invest in some of the leading artificial intelligence stocks of today — including Nvidia and Palantir — while also giving you exposure to the smaller tech companies that could become big players in the coming years. The fund also charges a very reasonable annual expense ratio of just 0.09% — equal to $0.90 for every $1,000 invested — allowing you to keep more of the returns you make.

3. Vanguard Growth ETF: Grow with the biggest companies

If you want to focus your investments on more growth stocks, then the Vanguard Growth ETF (VUG 0.48%) may be the right fund for you. This ETF tracks the performance of the CRSP US Large Cap Growth Index and includes more than 300 of the largest U.S. growth stocks.

Growth stocks are often technology-focused in the U.S., so you’ll have plenty of exposure to trends like AI and cloud computing — through companies including Nvidia — but you’ll also have exposure to consumer stocks, including Eli Lilly. You’ll also pay a low annual fee of just 0.04% with the Vanguard Growth ETF, far less than the average 0.93% similar funds charge.

Just remember that in order for these ETFs to work their magic, you’ve got to hold onto them for the long haul. Dipping in and out of these funds won’t do you much good — the real gains will come as you hold them (and buy more) through boom and bust cycles.

Cryptocurrencies can be confusing. So can exchange-traded funds (ETFs). And when you combine the two concepts into crypto-based ETFs, there are so many dark corners and financial enigmas to explore.

The mystery includes some of the most commonly used terms in crypto ETF headlines. You’ve seen a million breathless banners about inflows and outflows by now — but have you looked into what they actually mean? Adding more confusion to the situation, the inflow and outflow balance sometimes looks bullish when the crypto market is doing well, and bearish when cryptocurrencies don’t look too exciting.

So let’s break down the nuances of crypto ETF inflows and outflows — and why these metrics often oppose the broader cryptocurrency market’s mood.

Image source: Getty Images.

What are inflows and outflows, anyway?

First, let me explain what inflows and outflows are.

These ETF performance metrics don’t directly affect an investor’s returns. They are more closely related to measuring the quality and popularity of specific ETFs, usually compared to rival funds with similar investment goals.

I’m talking about the amount of money being added to a fund (with inflows) or taken out of the ETF (outflows). Growing or reducing the cash being invested in a fund may have an indirect effect on the underlying asset. It’s like tipping the scales while weighing bananas at the grocery store — the weighing process can affect the results. But for the most parts, the average ETF has minimal market-moving powers.

A tale of two Bitcoin ETFs

Here’s where I want to get specific. Two of the largest spot Bitcoin (BTC 2.30%) ETFs hold dramatically positions in the crypto-fund sector, and their differences will help me illustrate some fundamental concepts for you.

Say hello to the iShares Bitcoin Trust (IBIT 2.02%) and the Grayscale Bitcoin Trust (GBTC 2.06%) — two of the largest spot-price Bitcoin ETFs measured by the amount of assets under management (AUM). The iShares fund is the larger one, with $84.2 billion of AUM on Sept. 9. The Grayscale ETF’s AUM stops at $19.9 billion.

But it wasn’t always like that. Grayscale launched the Bitcoin Trust as a publicly traded, classic mutual fund in 2015. It then filed the paperwork to convert this fund into an ETF in October 2021, more than two years before the conversion took effect.

iShares was a later addition to the Bitcoin ETF market, starting the filings and cash funding in 2023. Fund manager BlackRock put this ETF on the market as soon as the U.S. Securities and Exchange Commission (SEC) allowed it on Jan. 11, 2024.

The great Bitcoin ETF migration

The Grayscale fund had been around for nearly a decade, when the SEC flipped the switch on proper Bitcoin ETFs, amassing $28.6 billion of investor assets by the ETF launch date. BlackRock’s iShares ETF started from nothing.

Then the inflows and outflows started.

Grayscale Bitcoin Trust’s AUM started to shrink right away, while the iShares fund grew its AUM at a remarkable speed. I’m including Bitcoin’s price trends in this chart, to demonstrate how closely a fund’s AUM can be related to the investment asset’s price changes over time — or not:

IBIT Total Assets Under Management data by YCharts

Fees may matter more than you think

The iShares fund’s AUM volume tends to rise when Bitcoin prices are up, and fall when the leading cryptocurrency is trending down. This makes sense, as Bitcoin’s price moves inspire bullish or bearish long-term expectation for the cryptocurrency — and its ETFs. It’s not a perfect 1:1 correlation, as investors sometimes embrace or reject certain ETFs for other reasons, but the bond is very tight.

The mathematical closeness of the Grayscale Bitcoin ETF’s AUM to Bitcoin’s price chart is looser, and the AUM value often trends down. This makes sense to me, because investors have plenty of reason to choose a different Bitcoin ETF these days.

You see, Grayscale charges beefy management fees for this fund. The iShares fund’s annual expense ratio stands at 0.25%, and was entirely canceled in the first few months as a marketing incentive. Grayscale is sticking to a 1.5% expense ratio.

What difference does a percentage point (well, 1.25%) make in this context? Actually plenty, especially for large-scale investors with a long time horizon.

Let’s say you’re a deep-pocketed institutional investor with $100,000 in the Grayscale Bitcoin Trust, perhaps started in the pre-ETF days. You’re paying Grayscale $1,500 a year for its fund management services. Then you move those finds to the iShares alternative, with an annual fee of $250 instead. You’ll have the same Bitcoin exposure either way, but Grayscale’s exorbitant fees can make a real difference in the long run.

So the iShares fund has seen 82% asset inflows over the last year, while Grayscale’s fund shrank by 17%. Their market performance was largely indistinguishable, with 140% to 141% total returns over this period.

In other words, the two funds offered very similar market performance, but investors backed away from Grayscale and adopted iShares as a clear favorite. With low fees, BlackRock’s financial backing, and the familiar iShares brand name, this fund is popular for good reasons.

And the asset flows can measure its popularity over time, or compare it to rival funds.

Exchange-traded funds (ETFs) make investing simple. With a few clicks of a button, you could quickly gain the opportunity to profit alongside a diversified collection of high-quality businesses.

In addition, select ETFs offer relatively easy ways to cash in on powerful economic trends, such as the artificial intelligence (AI) boom. Well-chosen funds could also provide you with bountiful and reliable passive income.

Read on to see why AI chip suppliers and high-yield dividend payers are particularly attractive stocks to buy today.

Image source: Getty Images.

This ETF could help you profit from the AI revolution

The world runs on semiconductors. Laptops, smartphones, medical devices, modern cars and trucks, airplanes, satellites, and solar panels are just some of the products that require these essential components to function properly.

The microchips that underpin computer technology of all sorts are becoming even more valuable in the age of AI. The global semiconductor industry is poised to grow from $697 billion in 2025 to $1 trillion by 2030 and $2 trillion by 2040, according to Deloitte. Chip suppliers are set to see their sales and profits soar in the coming years.

The iShares Semiconductor ETF (SOXX -2.86%) offers you a convenient way to claim your share of this enormous and rapidly expanding market.

The fund is managed by BlackRock, one of the world’s largest investment companies, with assets under management of $12.5 trillion as of the end of the second quarter.

The ETF holds stakes in 30 stocks, all of which are key cogs in the global semiconductor supply chain. Leading chipmakers Nvidia, Advanced Micro Devices, Intel, Broadcom, and Taiwan Semiconductor Manufacturing stand among the fund’s largest holdings.

The ETF’s annual expense ratio is reasonable at 0.34%. That amounts to $3.40 for every $1,000 invested.

All told, the iShares Semiconductor ETF is a relatively effortless and low-cost way to position yourself to benefit from the AI-fueled chip boom.

This dividend ETF can help you build a lucrative passive income stream

Dividends are the sweet rewards of investing. A swell of cash payments pouring into your account year after year can drastically reduce your financial worries. Dividends can also help you pay for the things you enjoy.

Moreover, dividend stocks can add ballast to your diversified investment portfolio. Stocks that regularly pay out cash to their investors are generally less volatile than those that don’t. Dividend-payers also tend to outperform non-dividend-payers during bear markets. Better still, companies that can consistently grow their cash distributions often see their share prices rise in kind.

As its name suggests, the Vanguard High Dividend Yield ETF (VYM -0.09%) offers convenient access to a broad collection of income-generating stocks with above-average payouts. The fund’s annualized dividend yield of roughly 2.6% is more than twice that of the S&P 500 Index, making it an excellent source of passive income.

With positions in roughly 580 stocks across a range of sectors, the ETF also provides investors with the wealth-protecting benefits of diversification. Top holdings, which include dividend stalwarts such as JPMorgan Chase, ExxonMobil, and Walmart, further help to mitigate the risks for shareholders.

Best of all, Vanguard charges ultralow fees, so nearly all the ETF’s gains will be passed on to investors. The Vanguard High Dividend Yield ETF has an expense ratio of 0.06%, which amounts to just $0.60 per $1,000 invested annually.

The Trump brand has been used to hawk cryptocurrencies, Bibles, steaks and guitars. Now the US president’s media company is laying the groundwork to sell investment funds.

Trump Media & Technology Group Corp., which is majority owned by Donald Trump, plans to sell offerings tied to his agenda.

The parent of the Truth Social platform, where the president is also a prominent poster, has announced plans for and trademarked the names of a group of financial products under the Truth.Fi banner—investments that will potentially benefit from the president’s policies with bets on energy, crypto and domestic manufacturing. The proposed products include exchange-traded funds, or portfolios that trade like stocks that can be purchased through most brokers.

Details on the products’ structures and strategies are still scarce. ETFs are subject to approval by regulators, and no public filings are available yet. Yet the brand-building has already begun. So have the arguments. Critics see a sitting US president having a financial stake in the success of funds that are associated with his brand and his politics, built on strategies that he can influence from the White House.

“These transactions fly in the face of government ethics standards,” says Michael Posner, professor of ethics and finance at NYU Stern School of Business. “When you’re president, the assumption is that 100% of your energy is devoted to serving the country—not monetizing your public platform.”

The administration says the president is walled off. “President Trump’s assets are in a trust managed by his children,” Deputy Press Secretary Anna Kelly said in a statement. “There are no conflicts of interest.” Trump Media did not respond to a request for comment.

US presidents aren’t required under federal law to divest assets, but past leaders have done so or used blind trusts to avoid perceived conflicts. Trump, however, has maintained financial exposure through family-controlled structures. Right before taking office again, he transferred about $4 billion worth of Trump Media shares to a trust controlled by his son Donald Trump Jr. But the arrangement is not a blind trust with independent oversight.

The concern among ethics experts isn’t only the ownership. It’s the overlap between policy and potential monetary benefit. The Truth.Fi funds could rise and fall in line with decisions the president makes in office. Protectionist policies aimed at various sectors and countries could help the proposed Truth.Fi Made in America ETF, which is set to bet on reshoring. Deregulatory moves in favor of crypto may boost a Bitcoin-themed ETF. And so on.

The crypto angle is a familiar one. Trump and his family have already profited from the digital-asset boom, hyping up a cryptocurrency bearing his name. Such so-called memecoins have no underlying value as investments, but creators of Trump’s coin recently held a promotion offering top holders a private dinner with the president. A company affiliated with the Trump Organization owns a large chunk of the Trump memecoins. Another Trump family-linked company, World Liberty Financial, has also issued its own cryptocurrencies, including a dollar-linked digital token called a stablecoin. World Liberty recently announced the coin would be used to complete a $2 billion transaction between a state-backed Abu Dhabi company and the overseas crypto exchange Binance. Senators Elizabeth Warren of Massachusetts and Jeff Merkley of Oregon have said the stablecoin offers “opportunities for unprecedented corruption” because the Trump family can benefit financially from the use of its product.

In its ETF announcement, Trump Media said the proposed products, which include portfolios known as separately managed accounts in addition to ETFs, offer a conservative alternative to “woke” investing. It’s a niche currently occupied by funds including the Point Bridge America First ETF and the God Bless America ETF, among others. Both have gathered only modest assets, as have left-leaning ETFs, thanks in part to a saturated ETF market that’s making life harder for newbie issuers.

There are already about 60 ETFs based on Bitcoin, a tally that’s grown by at least 22 this year. In addition, there are more than 60 funds tied to energy, including coal, and at least three from issuers including Tema and BlackRock Inc.’s iShares based on reshoring and manufacturing, according to data compiled by Bloomberg.

Trump Media “will be depending on its brand recognition to set its ETFs apart among a crowd of competing products,” says Roxanna Islam, head of sector and industry research at ETF shop TMX VettaFi. “A strong political following may help gather initial support, but in the long run, flows will ultimately depend on ETF basics like fees and performance.”

The company has announced plans to seed the funds with as much as $250 million. It’s working with trading platform Crypto.com and investment firm Yorkville Advisors to help run the funds. Still, its biggest unrivaled asset is Trump himself. Even if he’s not an explicit spokesperson, almost everything he does makes him a potential ad for the company. “What a competing fund doesn’t have is a person who’s in the news literally every day who can then talk about these things,” says Philip Nichols, a professor of legal studies and business ethics at the Wharton School of the University of Pennsylvania.

Hal Lambert, who runs the MAGA ETF and has raised money for Trump’s presidential runs, dismisses concerns about conflicts. For one, the president’s views on issues such as domestic manufacturing have been publicly known for decades. There are more direct ways to have a seat at the table than buying an ETF, he says; people can give money to campaigns or political action committees, for instance. “I just don’t know that that stuff would work on him,” Lambert says. “Trump does what he wants to do.”

Hajric writes for Bloomberg