Vanguard, with its colossal $7.2 trillion in assets under management, stands tall as a titan in the mutual fund and exchange-traded fund (ETF) landscape. For many investors, Vanguard’s offerings represent the pinnacle of reliability and value, making them the preferred choice for constructing top-notch investment portfolios.
At the core of Vanguard’s appeal lies its unwavering dedication to shareholder interests. By prioritizing low fees and shareholder-friendly policies, Vanguard ensures that investors can maximize their returns without sacrificing quality. With a diverse array of 86 exchange-traded funds, Vanguard caters to a broad spectrum of investment objectives and risk profiles.
For those seeking to harness the power of Vanguard’s ETFs to build a robust portfolio, we’ve curated a list of the 10 best stock funds. These ETFs boast stellar performance records, ultra-low expense ratios, and exposure to compelling investment themes, making them ideal candidates for long-term wealth creation.
Vanguard S&P 500 ETF (VOO): With an expense ratio of just 0.03% and a 30-day SEC yield of 1.36%, VOO offers exposure to 500 of the largest U.S. companies. Its diversified portfolio, anchored by tech giants like Microsoft and Apple, makes it a cornerstone of many investment portfolios.
Vanguard Mid-Cap Index Fund ETF Shares (VO): Designed to mirror the performance of mid-capitalization stocks, VO provides a balanced blend of risk and return. With an expense ratio of 0.04% and a 30-day SEC yield of 1.59%, this ETF offers exposure to promising mid-cap companies like Amphenol Corp and Transdigm Group.
Vanguard Small-Cap Index Fund ETF Shares (VB): For investors seeking growth opportunities, VB offers exposure to small-cap companies with robust growth trajectories. With an expense ratio of 0.05% and a 30-day SEC yield of 1.45%, VB presents an attractive long-term investment opportunity.
Vanguard Total Stock Market Index Fund ETF Shares (VTI): VTI provides extensive exposure to the U.S. stock market, spanning large-, mid-, and small-cap categories. With a rock-bottom expense ratio of 0.03% and a 30-day SEC yield of 1.35%, VTI is a fundamental building block for many investment portfolios.
Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI): For international diversification, VYMI offers exposure to foreign stocks with above-average dividend yields. With an expense ratio of 0.22% and a yield of nearly 5%, VYMI provides a reliable source of dividend income.
Vanguard Value Index Fund ETF Shares (VTV): VTV focuses on large-cap value stocks, offering a balance of income and capital appreciation. With an expense ratio of 0.04% and a 30-day SEC yield of 2.30%, VTV is an attractive option for income-oriented investors.
Vanguard Health Care Index Fund ETF Shares (VHT): VHT provides exposure to the healthcare sector, known for its resilience and long-term growth prospects. With an expense ratio of 0.10% and a 30-day SEC yield of 1.38%, VHT is well-positioned to capitalize on the healthcare industry’s enduring strength.
Vanguard Dividend Appreciation Index Fund ETF Shares (VIG): VIG focuses on stocks with a history of consistent dividend growth, offering a reliable source of income. With an expense ratio of 0.06% and a 30-day SEC yield of 1.81%, VIG is a cost-effective option for dividend growth investors.
Vanguard Growth Index Fund ETF Shares (VUG): VUG targets large-cap growth stocks, catering to investors seeking capital appreciation. With an expense ratio of 0.04% and a 30-day SEC yield of 0.47%, VUG is well-suited for growth-oriented portfolios.
Vanguard Information Technology Index Fund ETF Shares (VGT): VGT focuses on the information technology sector, offering exposure to companies driving innovation and technological advancement. With an expense ratio of 0.10% and a 30-day SEC yield of 0.58%, VGT presents an attractive opportunity for investors bullish on tech.
By incorporating these Vanguard funds into their portfolios, investors can tap into a diverse array of investment opportunities while benefiting from Vanguard’s renowned commitment to low fees and shareholder-friendly policies. With careful selection and strategic allocation, these ETFs can serve as powerful wealth-building tools for investors of all stripes.