Investing doesn't have to be stressful or even time-consuming. Academic studies have shown that one of the best ways to grow your money over time is to use a dollar-cost averaging strategy and buy low-cost, passively managed exchange-traded funds (ETFs) that track broad swaths of the market.

Within the diverse universe of passively managed ETFs, the Vanguard family has consistently been among the best performers, as well as among the most cost-efficient, in the space. The reason is that Vanguard is owned by its shareholders, allowing it to charge industry-low fees.

A full portfolio can be created with Vanguard products that can achieve returns comparable (and probably superior) to the benchmark S&P 500 index. Here's a nuts and bolts overview of three Vanguard funds that should cover the investing needs of most non-professionals looking to grow their money in a hassle-free and tax-efficient manner over the long term.

Continue reading

Source Fool.com