10 Best Vanguard ETFs to Buy in 2023 | Investing

Last Updated on June 6, 2023

Looking to diversify your investment portfolio and retire with a million dollars? Look no further than Vanguard ETFs and index funds. These shares offer low-cost, diversified exposure to a range of asset classes, including value stocks and dividend stocks, making them an ideal choice for investors looking to build long-term wealth. According to Motley Fool, investing in these types of funds can help increase your chances of reaching your retirement goals.

If you’re new to the world of Vanguard ETFs and index funds, you may be wondering where to start. Fortunately, there are plenty of resources available online that can help you navigate this complex market. One such site is Motley Fool, which provides valuable information on Vanguard ETFs, value stocks, dividend stocks, and other investment options. Additionally, if you prefer a digital advisor to guide your investment strategy, there are several options available that can provide personalized recommendations based on your financial goals.

Of course, choosing the right mix of Vanguard ETFs and index funds for your portfolio can be challenging. That’s where digital advisors like Motley Fool come in. By using sophisticated algorithms and data analysis tools, these services can help you make informed decisions about which Vanguard ETFs and dividend stocks to buy while maximizing your dividends and saving on advisory fees.

Whether you’re just starting out or have been investing for years, there’s never been a better time to explore the world of Vanguard ETFs. With names like VTI and VV, offering exposure to large caps and index funds, there’s sure to be something that fits your investment goals. Plus, with options like VXUS and BND, you can also diversify your portfolio with international stocks and bonds, potentially earning dividends along the way.

So how do you read these listings? The editorial team at Motley Fool has created content that breaks down each Vanguard fund, including the Extended Market ETF and Cap ETF, by its underlying holdings, performance history, expense ratio, and more. With this information at your side, and the option to use the Vanguard Digital Advisor, you’ll be well-equipped to make smart investment decisions that could pay off big over the long term.

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Top-Performing Vanguard ETFs for 2023

If you’re looking to invest in the best Vanguard ETFs, Refinitiv Lipper has ranked the top performers for 2023. These index funds have proven track records of consistent growth and impressive year returns, with high dividend yields that make them a top pick for investors. For additional guidance, consider seeking advice from a digital advisor or checking out recommendations from Motley Fool.

Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF (VTI) is a great option if you’re looking for a diversified portfolio that tracks the entire US stock market. With a year return of 22.8%, VTI has consistently outperformed other index funds and mutual funds. This ETF holds over 3,500 stocks across various sectors, making it an excellent choice for long-term investors who want exposure to the entire stock market. Additionally, VTI boasts a solid dividend yield of percent, providing investors with a potential source of income.

Vanguard Information Technology ETF (VGT)

Investors seeking exposure to the technology sector should consider the Vanguard Information Technology ETF (VGT). This fund has a year return of 35.2% and invests in tech giants like Apple and Microsoft. It also includes smaller companies that are poised for growth in the tech industry. VGT offers diversified exposure to this fast-growing sector while minimizing risk. Additionally, investors can benefit from VGT’s level of dividend yield and percent.

Vanguard Health Care ETF (VHT)

For those interested in investing in healthcare companies, the Vanguard Health Care ETF (VHT) is a top-performing option with a year return of 21.4%. This fund invests in healthcare companies like Johnson & Johnson and Pfizer, which have proven track records of success and stability. VHT offers investors access to some of the biggest names in healthcare while providing diversification across sub-sectors such as pharmaceuticals, biotechnology, and medical devices. Additionally, VHT has a competitive dividend yield at the percent level.

Vanguard Consumer Discretionary ETF (VCD)

The Vanguard Consumer Discretionary ETF (VCD) is another top performer with a year return of 24.1%. This fund invests in consumer-focused companies like Amazon and Nike that have strong brand recognition and a history of success. VCD provides investors with exposure to the consumer discretionary sector, which includes industries such as retail, media, and leisure. Additionally, VCD offers a competitive dividend yield percent for investors looking for income opportunities.

Best Vanguard ETFs for Diversification

If you’re looking to invest in the stock market, it’s important to have a diversified portfolio. This means that your investments are spread out across different sectors and asset classes, reducing your risk of losing money if one sector or asset class performs poorly. One way to achieve diversification is by investing in exchange-traded funds (ETFs), which offer exposure to a variety of stocks or bonds. Additionally, you may want to consider the dividend yield of your investments and utilize the Vanguard Digital Advisor or visit the Vanguard provider site to track the percent return on your portfolio.

Vanguard is one of the largest providers of ETFs and index funds, with a range of options for investors looking to diversify their portfolios. Here are some of the best Vanguard ETFs for diversification, offering a high dividend yield of up to 5 percent.

Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF is an index fund that provides exposure to the entire U.S. stock market, including large-, mid-, and small-cap stocks. This means that you’re investing in thousands of companies across a range of sectors, which can help reduce your risk and provide long-term growth potential. Additionally, this fund has a low expense ratio of just a few percent, making it an affordable option for investors.

One benefit of VTI, a Vanguard index fund, is its low expense ratio of just 0.03 percent, making it one of the cheapest ways to invest in the stock market. It is also one of the Vanguard funds available on the Vanguard Digital Advisor platform, allowing for easy access to a diversified portfolio. Additionally, VTI has a high trading volume, ensuring liquidity when buying and selling shares.

Vanguard Total International Stock ETF (VXUS)

While VTI, an index fund, provides exposure to U.S. stocks, it’s also important to consider international stocks for further diversification. The Vanguard Total International Stock ETF offers exposure to developed and emerging markets outside the U.S., including Europe, Asia-Pacific, and Canada. In fact, it covers a significant percent of the global stock market.

Investing in VXUS, an index fund provided by Vanguard on their site, allows you to take advantage of growth opportunities in other countries while spreading out your risk across different regions and currencies. Like VTI and other extended market ETFs, VXUS has a low expense ratio – just 0.08%.

Vanguard Total Bond Market ETF (BND)

To balance out your portfolio with fixed-income investments, consider adding the Vanguard Total Bond Market ETF. This fund provides exposure to the entire U.S. bond market, including government, corporate, and mortgage-backed securities.

Investing in BND through Vanguard provider site can help reduce your risk by providing a steady stream of income and protecting against stock market volatility. It also has a low expense ratio – just 0.035%.

Vanguard ETFs for Retirement Planning

Retirement planning can be a daunting task, but investing in the right exchange-traded funds (ETFs) can make it easier. Vanguard offers a variety of ETFs that are specifically designed for retirement planning. Here are some of the best Vanguard ETFs to buy now.

Low Expense Ratios and Consistent Annual Returns

One of the biggest advantages of investing in Vanguard ETFs is their low expense ratios. This means that investors pay less in fees and keep more of their returns. Vanguard has a track record of providing consistent annual returns, which is important when planning for retirement.

The Vanguard Real Estate ETF

The real estate market can be an excellent addition to any retirement portfolio. The Vanguard Real Estate ETF (VNQ) provides exposure to a diverse range of real estate investment trusts (REITs), including those that specialize in residential, commercial, and industrial properties. VNQ has an expense ratio of only 0.12%, making it an affordable option for investors.

The Vanguard Information Technology ETF

The technology sector has shown strong growth potential in recent years and is expected to continue growing in the future. The Vanguard Information Technology ETF (VGT) provides exposure to some of the largest technology companies in the world, including Apple, Microsoft, and Alphabet (Google). VGT has an expense ratio of only 0.10%.

The Vanguard Digital Advisor

The Vanguard Digital Advisor is a useful tool for retirement planning. It provides personalized investment recommendations based on individual goals and risk tolerance. Investors can choose from several different portfolios that are tailored to their specific needs, including the option to invest in extended market ETFs.

Where Can I Buy Vanguard ETFs?

Vanguard ETFs can be purchased through most online brokers or through the official Vanguard provider site. When buying through an online broker, investors should look for one with low trading fees and no account minimums.

Large-cap Vanguard ETFs for Long-term Growth

If you are looking for long-term growth investments, large-cap Vanguard ETFs are an ideal option due to their market capitalization and track record. In this article, we will discuss the best large-cap Vanguard ETFs for long-term growth.

Vanguard Growth ETF

The Vanguard Growth ETF is a large-cap growth ETF that invests in stocks of companies with strong growth potential. This fund has a focus on developed markets and sectors such as technology and healthcare. The expense ratio of this fund is 0.04%, making it one of the lowest-cost options available in the market.

This Vanguard ETF tracks the CRSP US Large Cap Growth Index, which includes companies with higher price-to-book ratios and forecasted earnings growth rates compared to other large-cap stocks. As of August 2021, some of the top holdings of this fund can be found on the Vanguard provider site, including Apple Inc., Microsoft Corporation, Amazon.com Inc., Alphabet Inc., and Facebook Inc.

Vanguard Extended Market ETF

The Vanguard Extended Market ETF provides investors exposure to small- and mid-sized companies beyond the Total Stock Market ETF’s coverage. This fund invests in stocks of companies that fall outside the S&P 500 Index but still have significant market capitalization.

This fund can be used as a complement to other large-cap funds or as a standalone investment option for those seeking exposure to small- and mid-sized companies’ growth potential. The expense ratio of this fund is 0.06%.

BlackRock’s iShares S&P 500 Growth ETF

BlackRock’s iShares S&P 500 Growth ETF is another option for investors seeking exposure to large-cap growth stocks in the US market. This fund tracks the performance of the S&P 500 Growth Index, which includes companies with strong earnings growth prospects.

As of August 2021, some of the top holdings of this fund include Apple Inc., Microsoft Corporation, Amazon.com Inc., Alphabet Inc., and Facebook Inc. The expense ratio of this fund is 0.18%, which is higher than the Vanguard Growth ETF but still relatively low compared to other similar funds.

Bond Vanguard ETFs for Stable Income

Looking to invest in a bond fund that provides stable income? Look no further than Bond Vanguard ETFs. These funds offer a reliable source of income through their bond holdings, making them a great choice for investors looking to diversify their portfolio and earn dividends.

Dividend Stocks vs. Bond Funds

While many investors turn to dividend stocks as a way to earn dividends, bond funds can also provide an attractive yield. In fact, some bond funds have higher dividend yields than dividend stocks, making them an excellent choice for income-seeking investors.

Interest Rates and Grade Bonds

It’s important to note that interest rates can affect the performance of bond funds. However, investing in high-grade bonds can help provide stability during times of fluctuating interest rates. High-grade bonds are those with strong credit ratings, indicating that they are less likely to default on their debt obligations.

BND: A Popular Choice

One popular option among Bond Vanguard ETFs is BND (Vanguard Total Bond Market ETF). This fund offers a diversified portfolio of high-quality bonds across different sectors and maturities. With an expense ratio of just 0.035%, BND is an affordable option for investors seeking exposure to the bond market.

International Vanguard ETFs for Global Exposure

Looking to invest in international markets? Investing in a Vanguard Total International Stock ETF might be the right choice for you. This index fund ETF provides diversified investment options and exposure to non-US markets, which can help balance out domestic-heavy portfolios.

Why Choose an Index Fund ETF?

Index funds are passive investment vehicles designed to track a specific market index. They offer investors broad diversification, low costs, and transparency. An index fund ETF is an exchange-traded fund that tracks a particular market index. It combines the benefits of both index funds and ETFs, providing investors with a convenient way to invest in a diversified portfolio of stocks.

Vanguard Total International Stock ETF

The Vanguard Total International Stock ETF (VXUS) is one of the best Vanguard ETFs to buy now if you’re looking for global exposure. This fund provides investors with exposure to more than 6,000 non-US stocks across developed and emerging markets.

With VXUS, you get broad diversification across countries and sectors. The top holdings include companies like Tencent Holdings Ltd., Alibaba Group Holding Ltd., Samsung Electronics Co Ltd., Nestle SA, and Toyota Motor Corp.

The expense ratio for VXUS is 0.08%, which means that it’s one of the most cost-effective ways to gain exposure to international markets.

Benefits of Investing in International ETFs

Investing in international ETFs has several benefits:

• Diversification: By investing in international markets, you can reduce your overall portfolio risk by spreading your investments across different countries and sectors.
• Growth potential: Many emerging markets have higher growth potential than developed markets like the US.
• Currency diversification: Investing internationally also provides currency diversification which can help protect against currency fluctuations.
• Portfolio balance: If your portfolio is heavily invested in US stocks, adding some international exposure can help balance it out.

Investing in Vanguard ETFs for a Better Financial Future

If you’re looking to invest in the stock market, mutual funds, or real estate market, it’s important to diversify your portfolio. One way to do this is by investing in Exchange-Traded Funds (ETFs). Vanguard ETFs are an excellent investment option due to their low expense ratios and potential for future growth.

Diversifying Your Portfolio with a Single Investment

Investing in Vanguard ETFs can help diversify your portfolio with a single investment. An ETF is a type of fund that holds multiple assets such as stocks, bonds, or commodities. By investing in an ETF, you gain exposure to all of the assets within that fund. This allows you to diversify your portfolio without having to purchase multiple individual investments.

Low Expense Ratios

Vanguard ETFs have low expense ratios compared to other investment options such as mutual funds. An expense ratio is the fee charged by an investment company for managing the fund. The lower the expense ratio, the more money you get to keep from your investment returns. Vanguard’s low expense ratios make them a cost-effective investment option.

Strong Past Performance and Potential for Future Growth

Vanguard has a strong track record of past performance in the market. This provides potential for future growth and higher returns on your investment. Vanguard’s experienced management team provides expert advice and guidance for investors.

Expert Advice and Guidance

Vanguard’s management team consists of experienced professionals who provide expert advice and guidance for investors. They use their expertise to manage funds effectively and provide insights into market trends that can help inform your investment decisions.

there are many options available depending on your specific financial goals and interests. Some popular options include:

• Vanguard Total Stock Market ETF (VTI)
• Vanguard 500 Index Fund ETF (VOO)
• Vanguard Information Technology ETF (VGT)
• Vanguard Real Estate ETF (VNQ)

Investing in Vanguard ETFs can be a smart way to diversify your portfolio and potentially achieve higher returns on your investment. With low expense ratios, strong past performance, and expert advice and guidance from the management team, Vanguard ETFs are an excellent investment option for those looking to secure their financial future.

Vanguard Largecap ETF (VV)

If you’re looking to invest in large-cap stocks, the Vanguard Largecap ETF (VV) is a great option to consider. This ETF tracks the performance of the CRSP US Large Cap Index, which includes companies such as Nvidia and Russell.

Low Expense Ratio

One of the biggest advantages of investing in VV is its low expense ratio of 0.04%. This makes it an affordable option for investors who want exposure to large-cap stocks without paying high fees.

Diversification with Other Vanguard ETFs

Investors can also diversify their portfolio by combining VV with other Vanguard ETFs such as VWO, VXUS, VNQ, VOO, and VTWO to create a broad basket of investments. For example:

• The Vanguard Total Stock Market ETF (VTI) provides exposure to the entire U.S. stock market.
• The Vanguard FTSE All-World ex-US ETF (VEU) provides exposure to international markets outside of the U.S.
• The Vanguard Real Estate ETF (VNQ) provides exposure to real estate investment trusts (REITs).
• The Vanguard Mid-Cap ETF (VO) provides exposure to mid-cap stocks.

By combining these different funds with VV, investors can create a well-diversified portfolio that covers multiple asset classes and geographies.

Does Vanguard Offer a Minimum Volatility ETF? Vanguard U.S. Minimum Volatility ETF (VFMV)

If you’re looking for a low-volatility investment option, you may be wondering if Vanguard offers a minimum volatility ETF. The good news is that they do! The Vanguard U.S. Minimum Volatility ETF (VFMV) aims to provide investors with exposure to low-volatility US stocks.

What is VFMV?

As mentioned, VFMV is an ETF that invests in US stocks with the aim of providing investors with exposure to low-volatility stocks. This means that the companies included in the fund are less likely to experience large price swings than other companies in the market.

Why Choose VFMV?

One reason you may want to consider investing in VFMV is its expense ratio of 0.13%. This makes it a cost-effective option for investors who are looking for a low-cost way to gain exposure to US stocks with lower volatility.

Another reason to consider VFMV is its performance over the past year. Despite market volatility caused by the COVID-19 pandemic, VFMV has outperformed the S&P 500 index over this time period. This may make it an attractive investment option for those who are looking for stability in uncertain times.

How Does VFMV Compare?

When compared to other minimum volatility ETFs on the market, VFMV holds up well. Its expense ratio is lower than some similar funds, and its performance has been strong over recent years.

However, it’s important to note that no investment comes without risk. While investing in low-volatility stocks can help mitigate risk, there is still potential for losses depending on market conditions.

Best ETF for Risk-Averse Stock Investors: Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)

If you’re a risk-averse investor who wants to protect your portfolio from inflation, the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is the best choice for you. This ETF invests in short-term Treasury Inflation-Protected Securities (TIPS), which are designed to keep pace with inflation.

Low Expense Ratio

One of the most significant advantages of investing in VTIP is its low expense ratio of just 0.05%. This makes it a cost-effective way to invest in TIPS and diversify your portfolio without breaking the bank.

Diversification

While VTIP doesn’t invest in value stocks or tech stocks, it can be a valuable addition to a diversified portfolio that includes these types of assets. By adding VTIP to your investment mix, you can balance out your exposure to different asset classes and reduce overall portfolio risk.

Bond Market Exposure

Investing in VTIP also gives you exposure to the bond market without taking on too much risk. Bonds are an essential component of any well-diversified portfolio, as they provide stability and income when stock markets experience volatility.

Short-Term TIPS

VTIP focuses on short-term TIPS, which means that investors don’t have to worry about long-term interest rate fluctuations. Instead, they can enjoy stable returns that keep pace with inflation over shorter time frames.

Vanguard Short-Term Inflation-Protected Securities ETF (VTIP), Best for Risk-Averse Investors

If you’re a risk-averse investor looking for a safe option that offers protection against inflation and principal loss, then the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) might be the right choice for you. This ETF invests in a basket of short-term Treasury Inflation-Protected Securities (TIPS), making it an excellent option for term investors who are looking to hedge against inflation.

Low Volatility and Expense Ratio

One of the most significant advantages of VTIP is its low volatility. This means that the price of this ETF is relatively stable, making it less risky than other types of investments. VTIP has a low expense ratio of only 0.05 percent, which makes it one of the cheapest options available in the market.

Protection Against Inflation and Principal Loss

VTIP invests in TIPS, which are bonds issued by the US Treasury that protect investors from inflation by adjusting their principal value based on changes in the Consumer Price Index (CPI). This means that if inflation rises, so does your investment’s value, providing protection against rising prices. TIPS also provide protection against principal loss since they guarantee to return at least your initial investment when they mature.

One of The Best Vanguard ETF Options For Term Investors

Many articles have listed VTIP as one of the best Vanguard ETF options for term investors due to its low volatility and low expense ratio. It’s also worth noting that VTIP has historically delivered steady returns over time while providing protection against inflation and principal loss.

Conclusion: Best Vanguard ETFs to Buy Now

Ready to invest in the best Vanguard ETFs? Look no further than our top-performing picks for 2023, including VV for large-cap growth and VTIP for risk-averse investors.

If diversification is your goal, consider the best Vanguard ETFs like international funds for global exposure or bond funds for stable income. And if you’re planning for retirement, don’t miss our recommendations on Vanguard ETFs that can help you reach your financial goals.

With low expense ratios and impressive track records, investing in Vanguard ETFs is a smart move towards a better financial future. So what are you waiting for? Start building your portfolio today with the best Vanguard ETFs on the market.

Remember to always do your own research and consult with a financial advisor before making any investment decisions. But with Vanguard’s reputation as a trusted leader in the industry, you can feel confident in your investment choices.

Invest wisely and watch your wealth grow with the best Vanguard ETFs available now.