Top Performing Vanguard ETFs for Low-Cost Investing

If you're looking for top-performing Vanguard ETFs for low-cost investing, you're in the right place. These funds have consistently delivered strong returns while keeping costs low.

Vanguard's Total Stock Market ETF (VTI) is a popular choice among investors, with a low expense ratio of 0.04%. It tracks the CRSP US Total Market Index, covering over 3,000 stocks.

The Vanguard Dividend Appreciation ETF (VIG) is another top performer, with a 5-year annualized return of 14.1%. It focuses on dividend-paying stocks with a history of increasing their payouts.

Investors seeking international exposure may want to consider the Vanguard FTSE Developed Markets ETF (VEA), which has a 5-year annualized return of 6.5%. It tracks the FTSE Developed All Cap ex US Index, covering developed markets outside the US.

Related reading: Bear Market Etfs

Index Funds are a great way to diversify your portfolio and reduce risk. Vanguard offers several index funds that track the performance of the entire US stock market, such as the Vanguard Total Stock Market Index Fund ETF Shares (VTI), which holds over 4000 different stocks.

Readers also liked: Vanguard Total Bond Market Index Etf

The VTI ETF has an expense ratio of 0.03%, making it a cost-effective option for investors. It's also worth noting that VTI holds mid and small-cap companies in its portfolio, providing exposure to more than just large-cap stocks.

The Vanguard Total World Stock Index Fund ETF Shares (VT) is another index fund that tracks the performance of foreign and US stocks, with a focus on emerging markets, Europe, Pacific, the Middle East, and North America. As of January 31, 2022, the ETF holds 9,350 stocks in its portfolio, making it a highly diversified investment option.

For more insights, see: Spdr Portfolio Etfs

The Russell 2000 Index Fund is a popular investment option that tracks the performance of the Russell 2000 Index, which is comprised of the 2,000 smallest publicly traded companies in the US.

This fund is a type of index fund that aims to provide broad diversification and potentially lower costs compared to actively managed funds.

The Vanguard Total Stock Market Index Fund ETF Shares, or VTI, is a great option for investors looking for a broad market exposure with a low fee.

It tracks the performance of the CRSP US Total Market Index and holds a total of 4,136 stocks as of January 31, 2022.

The fund has a net asset value of $1.3 trillion, making it one of the largest ETFs in the market.

Its top holding is Apple Inc., a multinational tech firm that manufactures and markets a wide range of products.

The fund's net assets are managed with a passively managed strategy, which means it doesn't try to beat the market, but rather tracks its performance.

This approach helps keep costs low, with a top ten holdings concentration of 25.1% and a rock bottom fee of 0.03%.

The VTI fund has a long history of success, with a 10-year return of 12.39% and a five-year return of 14.52%, as of November 8, 2024.

Its YTD return is 19.58%, which is impressive given the current market conditions.

Overall, the VTI fund is a great option for investors looking for a low-cost, broad market exposure with a proven track record of success.

For more insights, see: Performance Fee

The Vanguard Total Stock Market ETF (VTI) has a 10-year return of 12.39% and a five-year return of 14.52%, as of Nov. 8, 2024. Its YTD return is 19.58%.

The Vanguard S&P 500 ETF (VOO) returned 15.21% annually over the last five years and 20.81% during the past year. Year-to-date (YTD), shares returned 26.63%.

Both VTI and VOO have an expense ratio of 0.03%, making them low-cost options for investors.

Recommended read: Return Stacking Etfs

The S&P 500 is a widely followed stock market index that tracks the performance of the 500 largest publicly traded companies in the US.

VOO, the Vanguard S&P 500 ETF, is one of the largest and lowest-cost ETFs, with an expense ratio of 0.03% and over $1.1 trillion in assets.

The S&P 500 index is heavily weighted towards large-cap stocks, with a median market capitalization of $212 billion, and the top holdings are tech giants like Microsoft, Apple, NVIDIA, Amazon, and Google.

VOO has returned 15.21% annually over the last five years and 20.81% during the past year, making it a great addition to any portfolio.

Here are the top 5 holdings in VOO:

The top three sectors invested by VOO are information technology, financials, and health care, reflecting the dominant presence of these industries in the US economy.

VOO has attracted significant investor inflows, with $15.28 billion of new money in February, and its top ten holdings comprise 30.1% of the total investments.

Microsoft Corporation is a notable stock held by VOO, reflecting its significant market capitalization and influence in the tech industry.

The Vanguard Total Stock Market ETF (VTI) has held over 3700 stocks in its portfolio, with an average market cap of $150 billion, making it a great option for those looking for a broad exposure to the U.S. stock market.

Its top three sectors are technology, consumer discretionary, and industrials, with its top holdings being Microsoft, Apple, NVIDIA, Amazon, and Google.

Expand your knowledge: Vanguard Total International Stock Index Etf

The Vanguard Total Bond Market ETF (BND) offers investors broad exposure to the fixed-income market, holding 11,341 bonds in its portfolio.

The fund has returned -0.12% annually over the last five years, which is something to consider for those looking for a low-risk investment.

The Vanguard Total Stock Market Index Fund ETF Shares (VTI) holds a total of 4,136 stocks as of January 31, 2022, and the net assets of the fund are $1.3 trillion.

The current yield of the Vanguard Total Bond Market ETF (BND) is 4.36%, which can provide a steady income stream for investors.

The Vanguard Total World Stock Index Fund ETF Shares (VT) invests in foreign and U.S. stocks, with a primary focus on emerging markets, Europe, Pacific, the Middle East, and North America, making it a great option for those looking to diversify their portfolio.

The ETF has high potential for growth, but also exposes investors to high risk, which is something to consider for those with a more conservative investment strategy.

The Vanguard Growth ETF (VUG) invests in stocks of large companies with high-growth potential, with an expense ratio of 0.04% and returned 15.55% annually over the last 10 years.

Take a look at this: Vanguard Etf Portfolio Allocation

International investments can be a great way to diversify your portfolio and potentially increase returns.

VXUS, the Vanguard Total International ETF, is a good option for those looking for international exposure. It tracks the FTSE Global All Cap ex-U.S. index of over 7,913 stocks.

This ETF provides significant exposure to international companies, including Taiwan Semiconductors, Louis Vuitton, Samsung, and Shell. It has an expense ratio of 0.07%.

Over the last ten years, VXUS has averaged 4.23% in annual returns.

VXUS is a great option for international exposure, tracking the FTSE Global All Cap ex-U.S. index of over 7913 stocks.

It has a low cost of 0.07% expense ratio, making it a cost-effective choice for investors.

If you're looking to add a high-risk, high-reward investment to your portfolio, VXUS might be a good fit.

It has averaged 4.23% in annual returns over the last ten years, which is a relatively modest return compared to other investment options.

You'll get exposure to a diverse range of international companies, including Taiwan Semiconductors, Louis Vuitton, Samsung, and Shell.

You might enjoy: Investment Performance

VT: World is a great option for those looking for a simple one-fund solution to their portfolio. It combines the great companies of the world into one ETF.

This Vanguard ETF holds over 9523 different stocks in it, giving you massive diversification by having a piece of everything in your portfolio. The average annual return has been 8.19% over the last ten years.

The top 10 assets in VT would be assets you would find in VOO or VTI, like Apple, Microsoft, and Amazon. These strong companies continue to help this fund grow over the long term.

VT has an expense ratio of 0.07%, meaning it only costs $7 for every $10,000 invested, keeping costs low for investors.

On a similar theme: Retirement Etf Portfolio

VNQ is a great option for a piece of Real Estate in your portfolio, composed of many different REITs that invest in property, hotels, and land.

The REITs in VNQ pay 90% of their profits to shareholders, providing a quarterly dividend and return on capital.

Adding VNQ to your portfolio can increase income, making it a valuable addition to your investment mix.

The FTSE Developed Markets sector is a great place to start for investors looking to diversify their portfolios.

The Vanguard FTSE Developed Markets ETF (VEA) is a popular choice, with over $185.4 billion in assets under management.

This low-cost fund has an expense ratio of just 0.06% and invests heavily in the European and Pacific markets.

It holds nearly 4,000 stocks, making it a broad and diversified investment option.

The median market cap for the fund is $40.3 billion, indicating a mix of large and mid-cap stocks.

The top five holdings in the fund are Novo Nordisk, ASML Holding, Toyota, Nestle, and Samsung Electronics.

Over the last 10 years, the fund has returned 5.41% annually, while over the last five years it has returned 6.46%.

In the current year, it's up 6.43% so far.

Here's an interesting read: Investing in Etfs vs Stocks

The Information Technology sector is a great place to invest, with many top-performing ETFs available. The Vanguard Information Technology ETF (VGT) is one of the best-performing ETFs for Vanguard, with an average annual return of 18.10% over the last ten years.

For another approach, see: Global X Artificial Intelligence & Technology Etf

VGT primarily invests in technology companies like Apple, Microsoft, and Nvidia, making it a great option for those looking to gain exposure to the tech industry. It's also worth noting that VGT has a 0.10% expense ratio, which is cheaper than QQQ's 0.20% expense ratio.

Investing in VGT can provide a diversified portfolio, as it comprises over 373 stocks. This can help spread out risk and increase potential returns. The ETF also has a dividend yield of 0.83%, which can provide a regular income stream for investors.

If you're looking for a more focused approach, you can also consider the Vanguard Total Stock Market ETF (VTI), which holds more than 3700 stocks in its portfolio, including many technology companies. VTI has a 0.03% expense ratio and has returned 12.39% over the last 10 years.

Take a look at this: Low Expense Ratio Etfs

Real Estate is a great sector to explore for income and diversification. VNQ, the Vanguard Real Estate ETF, is a solid option for those looking to invest in this space.

Check this out: Vanguard Real Estate Etfs

It's comprised of many different REITs, which invest in property, hotels, and land. Some notable companies included in VNQ are Public Storage, O Realty, and Simon Properties.

One of the attractive features of REITs is that they pay 90% of their profits to shareholders. This can provide a nice income stream, especially with quarterly dividends.

If you're looking to add more income to your portfolio, VNQ is definitely worth considering. Just be sure to keep it in a Roth IRA, as the dividends are taxed as ordinary income.

Broaden your view: Premium Income Etfs

Bond investments can provide a stable source of returns, and Vanguard offers several options to consider.

The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a great choice for those looking to protect their investments from inflationary risks. It has $51.6 billion in AUM and an expense ratio of 0.04%.

This fund is invested in just 27 government-backed bonds, with 21.90% of the portfolio consisting of three to four-year bonds and 19.10% made up of two-to-three-year bonds.

See what others are reading: Etf Junk Bonds

The remaining 59% of the portfolio consists of bonds with maturities of less than two years and four to five years.

In terms of performance, the fund returned 3.41% annually in five years and 4.38% year-to-date.

Here's a breakdown of the fund's holdings:

Vanguard is a leading provider of low-cost exchange-traded funds, thanks to its unique ownership structure. This allows the firm to keep its low-cost edge across the fund spectrum.

You can evaluate ETFs based on their expense ratios, but it's also essential to consider their holdings and historical returns. Vanguard offers ETFs that invest in various asset classes, including large-cap stocks, small-cap stocks, midcaps, value stocks, growth stocks, bonds, and international markets.

Vanguard's S&P 500 ETF and its Total Stock Market ETF are popular choices for investing in large-cap stocks. These funds have a low expense ratio and a long history of success.

Related reading: Vanguard Low-cost Etfs Passive Income

If you're looking for the best Vanguard investments, consider starting with their low-cost ETFs. Vanguard is a leading provider of low-cost exchange-traded funds, thanks to its unique ownership structure.

One of the most popular Vanguard ETFs is the Vanguard Value ETF (VTV), which invests in large-cap value stocks in the U.S. with an expense ratio of 0.04%.

For those looking for growth potential, the Vanguard Growth ETF (VUG) is a great option, investing in stocks of large companies with high-growth potential and charging the same 0.04% expense ratio as VTV.

If you're willing to take on more risk, Vanguard's Small Cap ETF (VB) offers a more aggressive outlook, with year-to-date growth of 7.67% and an average return of 10.09% over the last ten years.

Here are some key differences between these ETFs:

VYM, the Vanguard High Yield Dividend ETF, tracks the FTSE High Dividend Yield Index and holds stocks like Exxon, Johnson and Johnson, and AbbVie.

It has a yield of 3.01%, making it one of the best dividend ETFs out there.

VYM has a low expense ratio of 0.06% and averages around 10.60% over the last ten years.

With over 441 stocks in its portfolio, VYM is a great asset to add more dividends to your portfolio.

These dividends can provide a high income for your golden years as you retire.

Consider reading: Vanguard High Dividend Yield Etf