If the Magnificent Seven continues to produce outsize returns, the Mega Cap Growth ETF will probably beat the S&P 500 again in 2025. But the more stock prices outpace earnings growth, the more extended valuations become, which can pressure companies to deliver incredible results.

As market-capitalization-weighted index ETFs, both VOO and VTI naturally feature a high allocation to large-cap stocks. If you want to focus more on mid- and small-cap stocks, a dedicated non-core ETF like VXF might be ideal. This ETF tracks the S&P Completion Index for a 0.06% expense ratio.

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.

The Vanguard Energy ETF ( VDE -0.68%) mirrors the sector's performance. So far this year, it is the best-performing exchange-traded fund (ETF) offered by investment management firm Vanguard. And with a 3.2% yield and a mere 0.1% expense ratio, it offers an inexpensive way to generate passive income.

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.