Vanguard Funds: Best Investment Options For Now

Vanguard funds are a great choice for investors due to their low-cost structure and high quality. Vanguard is a well-known investment firm with a wide variety of funds catering to investors' diverse needs. The company's commitment to shareholders and low fees make it particularly attractive for long-term investing.

Vanguard funds are ideal for those seeking to invest for their future, offering a selection of high-quality, low-cost mutual funds and exchange-traded funds (ETFs). The company's passive investment strategy, through index funds, has been pivotal in the passive-investing revolution, aiming to match rather than beat market moves for long-term gains.

vanguard funds provide instant diversification, reducing the risk associated with individual stocks and offering a broad range of stocks and bonds to choose from. The funds are also known for their low turnover, allowing investors to benefit from long-term market gains with minimal intervention.

- Vanguard Total Stock Market Index (VTSAX)

- Vanguard Wellesley Income (VWINX)

- Vanguard 500 Index (VFIAX)

- Vanguard Total Bond Market Index (VBTLX)

- Vanguard STAR Fund (VGSTX)

- Vanguard Total International Stock Market Index (VTIAX)

- Vanguard Growth Index (VIGAX)

- Vanguard Balanced Index (VBIAX)

- Vanguard Mid-Cap Index (VIMAX)

- Vanguard Target Retirement Funds

Vanguard's low fees

Vanguard is a well-known investment firm with a wide variety of funds for investors to buy and hold. Vanguard funds are a great choice for retirement investing thanks to their low-cost structure and high quality. The company's commitment to shareholders and its reputation for low fees and reasonable expenses make it especially well-suited for long-term investing.

Vanguard's platform fee is very competitive. Vanguard Investor charges an annual account fee of 0.15% on investments up to £250,000, which is less than half of the industry average. For investments over £250,000, there is no annual account fee, resulting in a maximum platform fee of £375.

Vanguard's fund charges are also low. The ongoing fund charges range from 0.06% to 0.78%, again far lower than the industry average. There are no transfer fees or dealing charges applied.

Vanguard's managed funds also offer good value. For example, the Vanguard Managed Stocks and Shares ISA and the Vanguard Managed Self-Invested Personal Pension (SIPP) have total fees of 0.60% and 0.61% respectively. These include the standard Vanguard account fee of 0.15%, average fund fees of 0.15% or 0.16%, and a management fee of 0.30%.

Vanguard's broad market indexes

• Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
• Vanguard 500 Index Fund Admiral Shares (VFIAX)
• Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)
• Vanguard Total World Stock Index Fund Admiral Shares (VTWAX)
• Vanguard Value Index Fund Admiral Shares (VVIAX)
• Vanguard Wellesley Income (VWINX)
• Vanguard Total Bond Market Index (VBTLX)
• Vanguard STAR Fund (VGSTX)
• Vanguard Growth Index (VIGAX)
• Vanguard Balanced Index (VBIAX)
• Vanguard Mid-Cap Index (VIMAX)
• Vanguard Target Retirement Funds

The specific broad market index that is best for you will depend on your investment goals, risk tolerance, and time horizon. It's important to consider the fees and minimum investment requirements for each fund before investing.

Vanguard's long-term investment funds

Vanguard is a well-known investment firm with a wide variety of funds for investors to buy and hold. Vanguard funds are a great choice for retirement investing thanks to their low-cost structure and high quality. Vanguard's commitment to shareholders and its well-earned reputation for low fees and reasonable expenses make it especially well-suited for long-term investing. Here are some of the best Vanguard funds for long-term investment:

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

This fund covers the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. It has a low turnover rate of 2.2% and a 0.04% expense ratio. The minimum initial investment is $3,000.

Vanguard 500 Index Fund Admiral Shares (VFIAX)

This fund tracks the S&P 500, which includes 500 large- and mid-cap stocks. It has a 0.04% expense ratio. The minimum initial investment is $3,000.

Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

This fund provides exposure to a broad range of stocks in developed and emerging markets outside the US. It has a turnover rate of 3.9% and a 0.12% expense ratio. The minimum investment requirement is $3,000.

Vanguard Total Bond Market Index Fund (VBTLX)

This fund is a smart choice for long-term investing as it is well-diversified and low-cost. The portfolio consists of more than 10,000 U.S. government and corporate bonds. The expense ratio is 0.05%. The minimum initial investment is $3,000.

Vanguard Growth Index Fund Admiral Shares (VIGAX)

This fund holds large-cap growth stocks that have historically outperformed the S&P 500, especially over long periods. It has expenses of 0.05%. The minimum initial investment is $3,000.

Vanguard Balanced Index Fund Admiral Shares (VBIAX)

This is a balanced fund that invests in a total stock index and a total bond index. It has expenses of 0.07%. The minimum initial investment is $3,000.

Vanguard Target Retirement Funds

These funds are designed for investors who want to buy and hold one mutual fund until retirement. The asset allocation of these funds is geared towards the target retirement year that is specific to the fund. For example, the Vanguard Target Retirement 2040 (VFORX) fund has an asset allocation of about 80% stocks and 20% bonds. It has an expense ratio of 0.08% and a minimum investment of $1,000.

Vanguard's target retirement funds

Vanguard Target Retirement Funds are a way to invest throughout your career and into retirement. Each fund is designed to manage risk while helping to grow your retirement savings. The minimum investment per Target Retirement Fund is $1,000.

Each fund invests in several other Vanguard funds to create a broadly diversified mix of stocks, bonds, and, in some cases, short-term reserves. The year in a Target Retirement Fund's name is its target date, the year in which Vanguard expects an investor in the fund will retire and leave the workforce.

The funds' managers gradually shift each fund's asset allocation to fewer stocks and more bonds so the fund becomes more conservative as you get closer to retirement. Managers maintain the current target mix, freeing you from the hassle of ongoing rebalancing.

The average Vanguard Target Retirement Fund expense ratio is 82% less than the industry average. When you're paying less for your funds, more money stays in your account working for you.

• VSVNX Target retirement 2070
• VLXVX Target retirement 2065
• VTTSX Target retirement 2060
• VFFVX Target retirement 2055
• VFIFX Target retirement 2050
• VTIVX Target retirement 2045
• VFORX Target retirement 2040
• VTTHX Target retirement 2035
• VTHRX Target retirement 2030
• VTTVX Target retirement 2025
• VTWNX Target retirement 2020
• VTINX Vanguard Target Retirement Income Fund

Vanguard's international stock funds

Vanguard Total International Stock Index Fund (VTIAX)

This fund provides broad diversification by investing in thousands of non-US stocks from both developed and emerging markets. As of September 2024, VTIAX tracks over 8,600 stocks represented by the FTSE Global All Cap ex US Index. It has a low turnover rate of 3.9% and a competitive expense ratio of 0.12%. The minimum initial investment requirement is $3,000.

Vanguard Total International Stock Index Fund – VXUS

VXUS is another popular choice for investors seeking international diversification. It is considered a moderately volatile fund and has a large size and a low expense ratio. As of June 2024, VXUS had a market capitalization of $72 billion. This fund is included in the Coffeehouse Portfolio and the Ivy Portfolio investment strategies.

Vanguard Total World Stock Index Fund Admiral Shares (VTWAX)

VTWAX offers a globally diversified investment portfolio by combining investments in the US and international markets. It tracks the FTSE Global All Cap Index, which includes over 9,900 stocks from the US, international developed, and emerging markets. VTWAX maintains a low portfolio turnover of 4.3% and reasonable expense ratios of 0.1%.

Vanguard Target Retirement 2070 Fund (VSVNX)

VSVNX is a target-date fund suitable for investors looking to retire around 2070. It currently allocates 90% of its portfolio to global stocks and 10% to global bonds. As the fund approaches the target retirement date, it gradually increases its bond allocation to become more conservative and prioritize capital preservation and income.

Vanguard International Mutual Funds

Vanguard also offers international mutual funds that provide access to foreign securities and bonds, spreading out risk beyond domestic stocks. Vanguard recommends that at least 20% of an investor's portfolio should be allocated to international stocks and bonds. Vanguard's international mutual funds include the Vanguard Total International Stock Index Fund, which holds over 7,500 non-US stocks, and the Vanguard Total International Bond Index Fund, which holds over 6,500 non-US bonds.

In summary, Vanguard's international stock funds offer investors a range of options to gain exposure to non-US markets. These funds provide broad diversification, access to thousands of international securities, and competitive expense ratios. When considering Vanguard's international stock funds, it's important to assess your investment goals, risk tolerance, and the specific characteristics of each fund.

Frequently asked questions