Key Points These popular Vanguard funds both invest heavily in major leaders like Nvidia and Microsoft. But VTI also offers investors exposure to small and midcap companies. 10 stocks we like better than Vanguard S&P 500 ETF › Exchange-traded funds, or ETFs, are a great way to gain exposure to a large number of stocks in one go. Why would you want to do this rather than just invest in a few stocks? This adds diversification to your portfolio, lowering risk. For example, if a particular sector or certain stocks traverse a rough patch, others within the fund may compensate. As a result, these ETFs are unlikely to deliver extreme movements in one direction or the other over a short period of time.
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