2 Under-the-Radar Vanguard ETFs to Invest $1,000 in Right Now

• Vanguard offers a variety of ETFs known for their low fees — and these two stand out in particular right now.

• The Vanguard Dividend Appreciation ETF contains more tech stocks than many traditional dividend ETFs.

• The Vanguard Total International Stock ETF offers exposure to both developed and emerging markets.

• 10 stocks we like better than Vanguard Dividend Appreciation ETF ›

Vanguard is one of the largest producers of exchange-traded funds (ETFs) in the world, with over 80 available. Some of its ETFs — like the Vanguard S&P 500, Vanguard Growth ETF, and Vanguard Total Stock Market ETF — are commonly invested in, but there are other under-the-radar Vanguard ETFs that can be great supplemental pieces in a portfolio. Let’s cover two of these ETFs with unique focuses that could warrant splitting $1,000 between them.

While some dividend ETFs prioritize companies with high dividend yields, the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) prioritizes companies that have consistently increased their annual dividend payout. To be included in VIG, a company must have raised its dividend for 10 consecutive years and not be in the top 25% highest-yielding eligible companies. The latter requirement helps you avoid yield traps.

VIG’s dividend yield is a modest 1.6%, which is lower than that of other popular dividend ETFs. However, investing in VIG isn’t about the current yield; it’s about playing the long game. You invest expecting your payout to be much higher in the years to come.

Plenty of VIG’s top holdings have below-average dividend yields, but have routinely increased their dividends and offer growth and income opportunities. Here are five examples:

Table by author. Dividend yields as of market open on Jan. 19. ETF percentages as of Dec. 31.

With VIG, you get exposure to many more tech and growth stocks than other traditional dividend ETFs.

It’s generally wise to include some international stocks in your portfolio to hedge against any rough patches in the U.S. economy. That’s why I’m a fan of the Vanguard Total International Stock ETF (NASDAQ: VXUS). It contains companies from both developed and emerging markets, allowing you to take advantage of what both offer.

Developed markets generally have established industries, mature financial markets, and infrastructure that supports reliable economic growth (think: the U.S., Germany, Japan, the U.K., and Australia). Emerging markets are growing and industrializing quickly, but still lack some infrastructure and regulatory control (think: China, Brazil, Mexico, and India). Below is how a $500 investment would be divided between regions: