Rebounding off a down year In 2024, the energy sector produced a total return (including dividends) of 5.7% compared to 25% for the S&P 500. was even worse, with a -0.6% total return for the energy sector compared to a 26.

If you've been an investor for any length of time at all, then you've almost certainly been advised to start (and maybe even finish) with index funds like the Vanguard S&P 500 ETF. This fund is of course simply meant to mirror the performance of the S&P 500.

If you're new to investing and don't have a lot of money to get started, don't fret. The best place for new investors to begin is often with exchange-traded funds (ETFs), which will give investors instant diversification through a portfolio of stock holdings.

Bond market conditions look challenging, but these ETFs offer a combination of healthy yield, upside potential and managed risk.

While all ETFs are different, there are two Vanguard funds I personally own and plan to continue buying for decades. An S&P 500 ETF tracks the S&P 500 ( ^GSPC 1.00%), meaning it includes all the stocks within the index. These stocks come from 500 of the largest companies in the U.S. across all corners of the market.

Vanguard is one of the gold standards when it comes to low-cost exchange-traded fund (ETF) options. Undoubtedly, passive investing (typically with index funds) tends to be wildly popular among the retail crowd.

With such a wide range of potential outcomes this year, risk management and value capture will be important themes.