Best Vanguard Funds: Where To Invest Smartly

Vanguard is a top-tier fund family, with a diverse ecosystem of stock, bond, and fixed-income ETFs. Vanguard funds tend to be low in cost and pursue simple, reliable strategies. Vanguard covers the bases with excellent choices among the three main asset classes: US stocks, international stocks, and bonds.

- Vanguard Total Stock Market Index Fund Admiral Shares

- Vanguard 500 Index Fund Admiral Shares

- Vanguard Total International Stock Index Fund Admiral Shares

- Vanguard Total Bond Market Index Fund Admiral Shares

- Vanguard Wellington Fund Investor Shares

- Vanguard S&P 500 ETF

- Vanguard Mid-Cap Index Fund ETF Shares

- Vanguard Small-Cap Index Fund ETF Shares

- Vanguard Total Stock Market Index Fund ETF Shares

- Vanguard Information Technology Index Fund ETF Shares

Vanguard's low-cost funds

Vanguard is a top-tier fund family, with a diverse ecosystem of stock, bond, and fixed-income ETFs. Vanguard funds tend to be low in cost and the company has built its reputation as a low-cost asset manager. Here are some of the best Vanguard low-cost funds:

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX): This fund offers exposure to the entire U.S. stock market, including small-, mid-, and large-cap growth and value stocks. It has a low turnover rate of 2.2% and an expense ratio of 0.04%.

Vanguard 500 Index Fund Admiral Shares (VFIAX): This fund tracks the S&P 500, providing exposure to 500 large- and mid-cap stocks. It has a low turnover rate and an expense ratio of 0.04%.

Vanguard Total International Stock Index Fund Admiral Shares (VTIAX): This fund offers exposure to more than 8,600 international stocks from both developed and emerging markets. It has a low turnover rate of 3.9% and an expense ratio of 0.12%.

Vanguard Total World Stock Index Fund Admiral Shares (VTWAX): This fund provides global diversification by investing in more than 9,900 stocks from U.S., international developed, and emerging markets. It has a low turnover rate of 4.3% and an expense ratio of 0.1%.

Vanguard Value Index Fund Admiral Shares (VVIAX): This fund targets the "value" factor, investing in stocks with high book-to-market ratios that have historically outperformed their growth counterparts. It has a low expense ratio of 0.05% and a portfolio turnover rate of 10.3%.

Vanguard Wellington Fund Investor Shares (VWELX): This fund was launched in 1929 and has a strong track record. It allocates about two-thirds of its portfolio to large- and mid-cap stocks with high dividends and low valuations, and the remaining one-third to investment-grade corporate bonds. It has an expense ratio of 0.26% and a 30-day SEC yield of 2.3%.

In addition to the funds mentioned above, Vanguard offers a wide range of other low-cost funds, including bond funds, sector-specific funds, and target retirement funds. These funds can be great options for investors seeking long-term, buy-and-hold investment strategies.

Vanguard's simple, reliable strategies

Vanguard's brand is synonymous with simple, reliable strategies. Vanguard funds are straightforward in their approach and reliable in their performance. They are well-known for their low-cost asset management and are a go-to choice for long-term investors.

Vanguard covers the bases with excellent choices among the three main asset classes: US stocks, international stocks, and bonds. It also excels in more tightly defined strategies, boasting highly rated style-specific, dividend-stock, real estate, and inflation bond funds.

Vanguard's passive index funds, for example, harness the tendency of total stock market values to increase over time. They do this by capturing entire market gains for investors instead of actively investing in individual stocks. Vanguard index funds track the performance of a single market index, such as the S&P 500 or Nasdaq, to mirror its total market returns.

Vanguard also offers index funds that mirror the bond markets. These funds buy and sell government and corporate debt and are considered safer investments, but they typically have smaller returns.

• Vanguard 500 Index Fund Admiral Shares (VFIAX): This fund offers exposure to 500 of the largest US companies, which make up 75% of the US stock market's total value. It has a very low expense ratio of 0.04%.
• Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX): This fund offers exposure to the entire US stock market, including small-, mid-, and large-cap growth and value stocks. It has a low expense ratio of 0.04%.
• Vanguard Total International Stock Index Fund Admiral Shares (VTIAX): This fund provides exposure to international stocks and ensures you don't have redundant domestic equity holdings. It has an expense ratio of 0.12%.
• Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX): This fund is composed of stocks with track records of not just paying dividends but also growing them over time. It has an expense ratio of 0.08%.
• Vanguard Health Care Fund Investor Shares (VGHCX): This fund offers exposure to the healthcare sector, including weight-loss drug manufacturer Eli Lilly, insurance giant UnitedHealth Group, and pharmaceutical company AstraZeneca. It has an expense ratio of 0.35%.
• Vanguard Real Estate Index Fund Admiral Shares (VGSLX): This fund focuses on real estate investment trusts (REITs), which offer higher yields than other types of stocks. It has an expense ratio of 0.13%.
• Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX): This fund offers diversified exposure to the bond market, with more than 11,000 investment-grade bonds. It has a low expense ratio of 0.05%.

Vanguard's top-rated ETFs and mutual funds

Vanguard is a top-rated fund family, with a diverse ecosystem of stock, bond, and fixed-income ETFs. Vanguard funds tend to be low in cost and pursue simple, reliable strategies. Here are some of Vanguard's top-rated ETFs and mutual funds:

Vanguard total world stock index admiral (VTWAX)

This fund offers a globally diversified investment portfolio by purchasing VTSAX and VTIAX in tandem. It tracks the FTSE Global All Cap Index, which holds more than 9,900 stocks from U.S., international developed, and emerging markets. It has a low turnover rate of 4.3% and a reasonable expense ratio of 0.1%.

Vanguard wellington™ inv (VWELX)

The Vanguard Wellington fund is a balanced fund, with about two-thirds of its portfolio allocated to stocks and the remaining third to investment-grade corporate bonds. It has returned an annualized 8.3% since its inception in 1929. The fund has a 0.26% expense ratio and pays an above-average 2.3% 30-day SEC yield.

Vanguard interm-term tx-ex adm (VCIT)

This intermediate-term corporate bond index fund is one of Vanguard's top-rated bond funds. It has a low expense ratio of 0.05% and a competitive yield.

Vanguard long-term corporate bd etf (VCLT)

The Vanguard Long-Term Corporate Bond ETF is another one of Vanguard's top-rated bond funds. It has a slightly higher expense ratio of 0.07% but offers a higher yield.

Vanguard small-cap value etf (VB)

This small-cap index fund offers exposure to small-cap companies with promising growth trajectories. It has a low expense ratio of 0.05% and a robust yield of 1.45%.

Vanguard's ETFs and mutual funds are excellent choices for long-term investors due to their low costs, reliable strategies, and diverse offerings. These funds can be used to build well-diversified portfolios and create long-term value.

Vanguard's index funds

Vanguard is one of the world's leading asset managers, with over $7 trillion in assets under management. Vanguard's index funds are renowned for their low costs, reliability, and strong performance. Here is an overview of some of the best Vanguard index funds to consider:

Vanguard 500 Index Fund Admiral Shares (VFIAX)

This fund offers exposure to 500 of the largest U.S. companies, representing about 75% of the total U.S. stock market value. It has an expense ratio of 0.04% and requires a minimum initial investment of around $3,000.

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

The VTSAX provides investors with exposure to the entire U.S. stock market, including small-, mid-, and large-cap growth and value stocks. It has an expense ratio of 0.04% and is part of the broader Vanguard Total Stock Market fund family, which has nearly $2 trillion in assets under management.

Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX)

The VDADX focuses on stocks with a track record of paying and growing dividends over time. It has an expense ratio of 0.08% and includes companies like Exxon Mobil, Broadcom, and Procter & Gamble.

Vanguard Health Care Fund Investor Shares (VGHCX)

The VGHCX is a sector-specific fund that invests in some of the leading healthcare companies, such as Eli Lilly, UnitedHealth Group, and AstraZeneca. It has an expense ratio of 0.35% and can serve as a hedge against the ever-increasing costs of healthcare.

Vanguard Real Estate Index Fund Admiral Shares (VGSLX)

The VGSLX is a real estate-focused fund that invests in Real Estate Investment Trusts (REITs), offering higher dividend yields than many other funds. It has an expense ratio of 0.13% and includes companies like Prologis and American Tower.

Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

The VTIAX is an "ex-U.S." fund that provides exposure to international stocks, specifically excluding companies headquartered in the United States. It has an expense ratio of 0.12% and includes well-known companies like Taiwan Semiconductor Manufacturing and Novo Nordisk, as well as emerging market growth opportunities.

Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX)

The VEMAX offers exposure to high-growth, high-risk international stocks in emerging markets. It has an expense ratio of 0.14% and includes companies like Alibaba Group Holdings, Tencent Holdings, and Beijing-based Meituan.

Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)

The VBTLX provides diversified exposure to the bond market, investing in over 11,000 investment-grade bonds from corporations and government entities. It has an expense ratio of 0.05% and is one of the biggest and most established bond funds in the market.

Vanguard Wellington Fund Investor Shares (VWELX)

The VWELX is Vanguard's oldest mutual fund, offering a balanced exposure to stocks and bonds. About two-thirds of the portfolio is invested in stocks, including large corporations like Microsoft and Apple, while the remaining third is in fixed-income markets. It has an expense ratio of 0.26%.

These Vanguard index funds offer a range of investment strategies, spanning different sectors, geographies, and asset classes. They are known for their low costs, instant diversification benefits, and long-term performance, making them attractive options for investors seeking a variety of investment goals.

Vanguard's active funds

Vanguard is known for its passive index funds, but it also has several excellent actively managed funds. Here is a detailed overview of some of Vanguard's best active funds to buy and hold:

Vanguard California Intermediate-Term Tax-Exempt (VCADX)

This fund is designed for investors seeking tax-exempt income and invests primarily in investment-grade municipal bonds from the state of California. It has a strong track record and is managed by Vanguard's experienced team.

Vanguard Capital Opportunity (VHCOX)

The VHCOX fund focuses on investing in large-cap growth stocks, particularly those with above-average growth potential. It aims to provide capital appreciation over the long term and has a strong track record of performance.

Vanguard Dividend Growth (VDIGX)

The VDIGX fund is a great choice for investors seeking dividend income and long-term capital appreciation. It invests in companies that have a strong track record of paying and increasing their dividends. The fund has delivered consistent returns and is a good choice for those seeking a combination of income and growth.

Vanguard High-Yield Tax-Exempt (VWALX)

The VWALX fund is a municipal bond fund that invests in high-yield, lower-rated municipal bonds. It aims to provide a high level of income that is exempt from federal taxes, making it attractive for investors in high tax brackets. The fund has delivered strong returns over the years.

Vanguard Intermediate-Term Tax-Exempt (VWIUX)

The VWIUX fund is similar to the VCADX fund but focuses on intermediate-term municipal bonds. It seeks to provide tax-exempt income for investors and has a strong track record of performance.

Vanguard Primecap Core (VPCCX) and Vanguard Primecap (VPMCX)

The VPCCX and VPMCX funds are actively managed equity funds that focus on investing in large-cap growth stocks. They aim to provide long-term capital appreciation and have delivered strong returns over the years. These funds are managed by Vanguard's experienced advisory teams.

Vanguard Tax-Managed Capital Appreciation (VTCLX)

The VTCLX fund is designed to minimize taxes for investors by keeping turnover low and focusing on stocks with lower dividends. It tracks the Russell 1000 Index and has provided consistent returns over the years.

Vanguard Ultra Short-Term Tax-Exempt (VWSUX)

The VWSUX fund invests in short-term, high-quality municipal bonds. It aims to provide a high level of income that is exempt from federal taxes and is suitable for investors seeking a low-risk investment option.

Vanguard Wellesley Income (VWIAX)

The VWIAX fund is a balanced fund that invests in a mix of stocks and bonds. It focuses on large-cap value stocks and high-quality investment-grade bonds. The fund aims to provide both income and capital appreciation, making it a good choice for investors seeking a combination of current income and long-term growth.

Vanguard Wellington (VWELX)

The VWELX fund is Vanguard's oldest mutual fund, offering a balanced approach with about two-thirds of its portfolio in stocks and the rest in fixed-income investments. It has a strong track record, having navigated through various market cycles since its inception in 1929. The fund provides a good mix of income and growth potential.

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