Top Vanguard Funds Morningstar to Boost Your Wealth

If you're looking to boost your wealth, consider adding these top Vanguard funds to your portfolio. The Vanguard 500 Index Fund (VFIAX) is a great starting point, with an expense ratio of just 0.04% and a long history of delivering consistent returns.

With a low-cost approach, the Vanguard Total Stock Market Index Fund (VTSAX) offers broad diversification and has consistently outperformed the market since its inception in 1992.

For those seeking more aggressive growth, the Vanguard Small-Cap Index Fund (NAESX) has delivered impressive returns, with an average annual gain of 12.1% over the past 10 years.

When it comes to investment strategies, it's essential to consider your goals and risk tolerance. Vanguard funds are known for their low-cost index funds, which can be a great starting point for many investors.

One popular strategy is dollar-cost averaging, which involves investing a fixed amount of money at regular intervals, regardless of the market's performance. This can help reduce the impact of market volatility.

For long-term investors, a buy-and-hold approach can be effective, as it allows you to ride out market fluctuations and potentially benefit from compound interest.

When choosing an investment strategy, it's essential to consider your goals and risk tolerance.

To ensure you find a useful option, look for a mix of asset classes that span major categories. This breadth will help you achieve your investing goals.

All the options listed in the article charge less than 0.30% for annual expenses, which translates to $30 or less on every $10,000 invested.

Having a low-cost investment is crucial for long-term growth.

Multibillion-dollar offerings can provide stability and reliability, which are important factors to consider when investing.

Value is a key consideration for investors seeking reliable income and capital appreciation. The Vanguard Value Index Fund ETF Shares (VTV) is an excellent choice, tracking the CRSP US Large Cap Value Index and focusing on stocks with large market capitalizations and compelling valuations.

Its low expense ratio of 0.04% makes it a cost-efficient option. The 30-day SEC yield of 2.30% also offers a significant income potential.

Investing in high-quality companies with strong management teams and solid business models is a winning strategy. The VTV's top holdings, including Berkshire Hathaway, Broadcom, and JPMorgan Chase, are a testament to this approach.

These companies are likely undervalued relative to their intrinsic worth.

The CAN SLIM strategy is a popular investment approach that focuses on growth stocks with strong fundamentals.

Companies with a Composite Rating of 99 are considered top performers, having outperformed 99% of all stocks on various technical and fundamental factors.

Generac, a generator maker, is one such stock with a best-possible Composite Rating of 99.

West Pharmaceutical Services, a drug injection system maker, also boasts a best-possible Composite Rating of 99.

Signet Jewelers, an international jewelry retailer, had a strong SMR Rating of B, indicating high profitability.

Freedom Holdings, an international brokerage, banking, and financial services firm, is another company with a best-possible IBD Composite Rating of 99.

Vanguard offers a suite of 86 exchange-traded funds, providing a comprehensive range of options for investors seeking diversified portfolios.

These funds are designed to benefit investors by minimizing fees, which translates to more money in your pocket.

With such a broad portfolio, it's essential to choose the right funds that suit your investment goals and risk tolerance.

The information technology sector is a great place to invest, especially with the Vanguard Information Technology Index Fund ETF Shares. This fund focuses on the MSCI US Investable Market Information Technology 25/50 Index, composed of large, medium-sized, and small U.S. companies operating in the information technology sector.

The Vanguard tech fund has an expense ratio of 0.10% and a 30-day SEC yield of 0.58%. It's a relatively low-cost option for investors.

The fund's top three holdings are Microsoft, Apple, and Nvidia, with a greater concentration in these companies than the VUG fund. This increases its growth potential and risk profile.

Artificial intelligence is set to revolutionize our daily lives, and this trend is expected to propel the tech bull market for years to come.

The Wellington fund is a great option for those looking for a balanced portfolio. It's Vanguard's oldest mutual fund, founded in 1929, and is known for its blend of stocks and bonds.

The fund has around $13.7 billion in assets under management and a yield of 2.1%. It also has a relatively low expense ratio of 0.26%.

The Wellington fund invests in a mix of large corporations like Microsoft and Apple, as well as fixed-income markets like agency mortgage bonds from Fannie Mae and investment-grade corporates from big banks like JPMorgan Chase and Wells Fargo.

The fund's portfolio includes around 70 stocks and 1,400 individual bonds, making it a more active fund compared to some of the other options available.

Here are some key stats about the Wellington fund:

Keep in mind that a balanced portfolio is no guarantee of profitability, and the Wellington fund has actually underperformed the S&P 500 stock market index so far this year.

The Vanguard Mid-Cap Index Fund ETF (VO) tracks the CRSP US Mid Cap Index, offering exposure to mid-capitalization stocks.

This fund has an expense ratio of 0.04% and a 30-day SEC yield of 1.59%.

Its top holdings include Amphenol Corp, Transdigm Group, and Constellation Energy.

VO is favored for its balance of risk and return, providing a convenient way to match the performance of medium-sized companies.

Mid-caps have historically delivered excess returns relative to the S&P 500.

A well-balanced portfolio should have some exposure to this group in case a trend reversal takes shape.

The performance gap between mid-caps and the broader markets has widened substantially post-pandemic.

Vanguard offers sector-specific funds that can help you navigate the market with a targeted approach. For instance, the Vanguard Health Care Fund Investor Shares (VGHCX) has a focus on healthcare stocks.

This fund has a relatively low expense ratio of 0.35% and a yield of 0.7%, with a portfolio of about 100 holdings, including giants like Eli Lilly and UnitedHealth Group.

One benefit of VGHCX is its potential to act as a hedge against increasing healthcare expenses, making it a defensive investment option.

The Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX, $39.23) is a great option for investors looking for high-growth international stocks.

This fund is a cheap and simple option that takes the guesswork out of investing in emerging markets, with a single, diversified holding across some 5,900 stocks.

The top countries represented in VEMAX are China (29.2% of assets), India (24%), Taiwan (19.5%), and Brazil (4.8%).

Investors can also consider the Vanguard Emerging Markets Stock Index Fund Admiral Shares as an ETF, the Vanguard FTSE Emerging Markets ETF (VWO).

This fund offers exposure to emerging market stocks that many investors are looking for, and also allows for an easy overlay that ensures you don't have redundant domestic equity holdings across your mutual funds.

The Vanguard Emerging Markets Stock Index Fund Admiral Shares is one of the best Vanguard mutual funds to layer into your portfolio, especially if you're looking for reliable income instead of higher-risk investments.

Here's a breakdown of the top stocks in VEMAX:

These stocks offer a mix of growth opportunities and established companies, providing a solid foundation for investors looking to tap into emerging markets.

The health care sector is a unique and fascinating area of the market. Vanguard offers a range of funds that allow investors to tap into this sector.

One such fund is the Vanguard Health Care Fund Investor Shares (VGHCX), which has assets under management of $7.4 billion. This fund has a yield of 0.7% and an expense ratio of 0.35%. It's a growth-oriented fund with a focus on the best healthcare stocks.

The fund's holdings are led by weight-loss drug manufacturer Eli Lilly (LLY), insurance giant UnitedHealth Group (UNH), and Big Pharma mainstay AstraZeneca (AZN). These companies are well-established players in the healthcare industry.

For investors looking for a more cost-effective option, the Vanguard Health Care Index Fund ETF Shares (VHT) is a great choice. This ETF has an expense ratio of 0.10% and a 30-day SEC yield of 1.38%. It invests primarily in the healthcare sector, with major holdings in industry giants such as Eli Lilly, UnitedHealth Group, and Johnson & Johnson.

The VHT is a play on the healthcare industry's durability across market cycles and excellent prospects for long-term growth. However, it does introduce a higher level of risk compared to more diversified funds.

Here are some key statistics for the Vanguard Health Care Fund Investor Shares (VGHCX) and the Vanguard Health Care Index Fund ETF Shares (VHT):

Both of these funds offer a way to invest in the healthcare sector, but they have different characteristics and risks. It's essential to consider your investment goals and risk tolerance before choosing between them.

Small-cap funds are an attractive option for investors looking for growth potential, and Vanguard Small-Cap Index Fund ETF Shares is a great example. This fund has an expense ratio of just 0.05%.

The fund's top holdings are Targa Resources, Axon Enterprise, and Builders FirstSource, which are well-established companies with strong revenue and earnings growth. These companies have already demonstrated their ability to perform.

The Vanguard Small-Cap Index Fund ETF Shares has a 30-day SEC yield of 1.45%, making it a robust investment opportunity. This means investors can expect a decent income stream from their investment.

Investors should be comfortable with higher risk in exchange for the potential of above-average growth, as the VB fund presents a long-term investment opportunity.

The Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) is one of the best Vanguard mutual funds for investors seeking stability among broad market uncertainty. It's composed of stocks with track records of not just paying dividends over time, but also growing them for steady appreciation.

The fund has a yield of 1.7% and an expense ratio of 0.08%, making it a cost-effective option for dividend growth strategists. It tracks a focused list of about 340 total stocks, including oil major Exxon Mobil, semiconductor stock Broadcom, and consumer staples giant Procter & Gamble.

The Vanguard Dividend Appreciation Index Fund Admiral Shares is also offered as an ETF, the Vanguard Dividend Appreciation ETF (VIG), which tracks the S&P U.S. Dividend Growers Index. This ETF focuses on stocks that have consistently increased their dividends year after year.

Here are some key stats for the Vanguard Dividend Appreciation ETF (VIG):

Dividend Appreciation is a strategy favored by super-investors like Warren Buffett. It involves investing in stocks that have consistently increased their dividends year after year.

The Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) is one of the best Vanguard mutual funds to invest with this strategy in mind. It's composed of about 340 stocks with track records of not just paying dividends over time, but also growing them for steady appreciation.

The fund's expense ratio is a low 0.08%, making it a cost-effective option. Its top holdings include oil major Exxon Mobil, semiconductor stock Broadcom, and consumer staples giant Procter & Gamble.

The Vanguard Dividend Appreciation Index Fund Admiral Shares is also offered as an ETF, the Vanguard Dividend Appreciation ETF (VIG). This ETF tracks the S&P U.S. Dividend Growers Index and has an expense ratio of 0.06%.

Here are some key statistics about the Vanguard Dividend Appreciation ETF (VIG):

The fund's top holdings include Microsoft, Apple, and Broadcom – all of whom have a long track of regular dividend raises. This is a reliable indicator of a healthy and robust business.

International High Dividend funds can provide a unique opportunity for investors to diversify their portfolios and tap into foreign markets with high dividend yields.

The Vanguard International High Dividend Yield ETF (VYMI) is a standout pick for international diversification, tracking the FTSE All-World ex US High Dividend Yield Index.

Its expense ratio of 0.22% is relatively reasonable for an international high-yield fund, and it offers a yield of nearly 5%.

The fund's top holdings, including Toyota Motor Corp., Nestle SA, and Shell, all offer yields greater than the S&P 500, making it a reliable vehicle for dividend income.

Investors should note that the VYMI has lagged behind the S&P 500 since inception, but its high-quality holdings make it a solid choice for those seeking international high dividend exposure.

The Vanguard Growth Index Fund ETF Shares (VUG) is a concentrated version of the S&P 500 that has been steadily beating this benchmark index over the prior 10 years.

Its expense ratio stands at just 0.04%, making it an attractive option for growth-oriented investors with an elevated risk tolerance.

The fund tracks the CRSP US Large Cap Growth Index, composed of 199 large-cap growth stocks, including top names like Microsoft, Apple, and Nvidia.

The 30-day SEC yield is only 0.47%, reflecting the fund's focus on capital appreciation over income generation.

The VUG's top holdings mirror those of the S&P 500, but with a heavier concentration in these top names.