--- title: "2 Top Vanguard ETFs to Buy With $2,000 Right Now and Never Sell" description: "The article discusses two Vanguard ETFs, the Vanguard Russell 2000 ETF (VTWO) and the Vanguard Real Estate ETF (VNQ), as attractive long-term investment options. With the S&P 500 and Nasdaq near all-t" type: "news" locale: "en" url: "https://longbridge.com/en/news/261913475.md" published_at: "2025-10-20T14:41:03.000Z" --- # 2 Top Vanguard ETFs to Buy With $2,000 Right Now and Never Sell > The article discusses two Vanguard ETFs, the Vanguard Russell 2000 ETF (VTWO) and the Vanguard Real Estate ETF (VNQ), as attractive long-term investment options. With the S&P 500 and Nasdaq near all-time highs, these ETFs offer exposure to relatively undervalued small-cap stocks and REITs. The Russell 2000 ETF provides diversification among 2,000 small companies, while the VNQ focuses on income-generating REITs with a nearly 4% yield. The current valuation gap between small and large-cap stocks, along with a potential falling interest rate environment, makes this an opportune time to invest in these ETFs for long-term growth. The S&P 500 and Nasdaq are within a couple percentage points of their all-time highs, and many popular stocks and ETFs are looking rather expensive right now. That's especially true about some of the mega-cap technology stocks, and the funds that are heavily weighted in favor of the largest companies in the market. However, there are some areas of the market that are still relatively cheap, and two that are worth a closer look are small-cap stocks and real estate investment trusts, or REITs (pronounced 'reets'). Investors who are looking for bargains in the generally expensive stock market may want to take a closer look at the **Vanguard Russell 2000 ETF** (VTWO) and the **Vanguard Real Estate ETF** (VNQ), as both look like excellent opportunities for patient long-term investors to put money to work. Image source: Getty Images. ## 2 Great Vanguard ETFs The Russell 2000 is the most widely followed index of small cap stocks, and the Vanguard Russell 2000 ETF allows investors to track its performance. As the name suggests, the index consists of the stocks of 2,000 companies, and they have a median market cap of $3.4 billion. Although it's a weighted index, because of the number of stocks and small-cap nature of the fund, no stock accounts for more than 0.74% of its assets. In short, this is a highly diversified basket of smaller companies. On the other hand, the Vanguard Real Estate ETF invests in an index of real estate investment trusts (REITs). These are companies that own retail properties, data centers, office buildings, apartments, warehouses, and other types of commercial real estate. Unlike the Russell 2000 ETF, the Vanguard Real Estate is somewhat concentrated in its largest positions. The fund owns over 150 stocks, but the 10 largest holdings make up 39% of the total assets -- essentially, there are some REITs that are *much* larger than the average company in the sector. Because REITs are designed as income investments, the Vanguard Real Estate ETF is an excellent dividend ETF. It passes through the dividends paid by its components, and has a yield of nearly 4%. ## Why now? The short explanation of why now could be a great time to buy these two ETFs is there's a valuation gap between small cap and large cap stocks, and the likely falling-rate environment of the next couple of years could disproportionately benefit small caps and rate-sensitive sectors like real estate. Just to put some context behind this, consider that the average Russell 2000 component trades for 2.0 times book value as of the latest information, and has a price-to-earnings ratio of 18.3. Meanwhile, the average S&P 500 component trades for 5.2 times book value and nearly 29 times earnings. This is the largest valuation gap since the late 1990s. And small cap stocks proceeded to outperform large caps for more than the next decade. As far as interest rates go, the benefits on REITs are plentiful. First, REITs generally rely on borrowed money to grow (similarly to how most homebuyers rely on mortgages), and lower rates mean lower borrowing costs. Second, commercial real estate values are directly correlated with risk-free interest rates (the 10-year Treasury yield tends to be a good indicator), so lower rates can make their properties more valuable. And finally, when rates fall, dividend yields tend to fall as well. Since stock price and yield have an inverse relationship, falling yields can push REIT share prices higher. ## Buy and never sell -- and then buy more Although I think it could be an opportune time to add both of these ETFs to your portfolio, I want to be clear that I'm suggesting these as *long-term* investments. Buying at an attractive valuation and holding for decades can be a great way to build wealth over time, and that's exactly why I own both of these ETFs in my portfolio and add shares regularly. ### Related Stocks - [VNQ.US - Vanguard Real Estate ETF](https://longbridge.com/en/quote/VNQ.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 在业绩表现喜忧参半以及对 2026 年持谨慎态度的指引之后，审视 AppFolio（APPF）的估值 | AppFolio (APPF) 在最新的财报发布后引起了投资者的关注，该财报显示收入增长了 22%，但对 2026 年的指引持谨慎态度。该股票目前的价格为 178.41 美元，反映出 30 天内的回报率为 16.22%。分析师认为该股票被低 | [Link](https://longbridge.com/en/news/275978805.md) | | 以下是分析师对 AppFolio（APPF）的看法 | 分析师指出，AppFolio, Inc.（NASDAQ:APPF）是纳斯达克上被严重超卖的股票之一。该公司在 2025 财年第四季度报告了 22% 的同比收入增长，达到 2.48 亿美元，管理的总单位数量增加了 8%，达到 940 万。这些 | [Link](https://longbridge.com/en/news/275754458.md) | | ABN Amro Investment Solutions 收购了 Welltower Inc. 的 44,187 股股票 $WELL | ABN Amro Investment Solutions 在第三季度将其在 Welltower Inc. 的持股增加了 427.9%，额外购买了 44,187 股，使其总持股达到 54,514 股，价值 971 万美元。其他机构投资者也增 | [Link](https://longbridge.com/en/news/275999175.md) | | 加拿大 Dream Industrial REIT 第四季度的租金收入增加 | Dream Industrial REIT 报告显示，第四季度净租金收入同比增长 9.6%，每单位的 FFO 增长 5.3%。到 2025 年底，入住率提高至 95.5%。公司预计从完全租赁的开发项目中获得超过 1000 万加元的年净营业收 | [Link](https://longbridge.com/en/news/276180887.md) | | 6 位分析师对 Kimco Realty 的评级意见是什么 | Kimco Realty（纽约证券交易所代码：KIM）获得了 6 位分析师的混合评级，12 个月的平均目标价为 23.5 美元，较之前的估计下降了 5.36%。最近的评估显示出不同的行动：Evercore ISI 将其目标价上调至 24 美 | [Link](https://longbridge.com/en/news/275952530.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.