The Best Vanguard ETFs to Buy
The Best Vanguard ETFs to Buy
The best Vanguard ETFs all feature rock-bottom fees, large asset bases, and long trading histories. Here are a few of our favorites.
By Steven Orlowski, CFP, CNPR
When it comes to investing, few names carry the same weight as Vanguard. Known for pioneering index funds and keeping fees low, Vanguard offers a wide selection of Exchange-Traded Funds (ETFs) that appeal to both beginner and seasoned investors. If you're looking for stability, diversification, and cost-efficiency, Vanguard’s ETFs should be on your radar.
Here are some of the best Vanguard ETFs to consider for your portfolio in 2025:
1. Vanguard Total Stock Market ETF (VTI)
-
Expense Ratio: 0.03%
-
Assets Under Management (AUM): $350+ billion
-
What It Does: VTI gives investors exposure to the entire U.S. stock market, from small-cap to large-cap companies.
-
Why We Like It: It’s a one-stop-shop for broad U.S. equity diversification. With over 4,000 stocks in the fund, it’s ideal for long-term growth with minimal management fees.
2. Vanguard S&P 500 ETF (VOO)
-
Expense Ratio: 0.03%
-
AUM: $350+ billion
-
What It Does: Tracks the S&P 500 index, representing the 500 largest publicly traded U.S. companies.
-
Why We Like It: VOO is a core holding for many portfolios, offering instant access to America’s most powerful businesses with an ultra-low fee structure.
3. Vanguard Total Bond Market ETF (BND)
-
Expense Ratio: 0.03%
-
AUM: $100+ billion
-
What It Does: Provides exposure to U.S. investment-grade bonds, including government, corporate, and mortgage-backed securities.
-
Why We Like It: A strong choice for income-focused investors or those seeking to balance the risk of equities with stable bond exposure.
4. Vanguard FTSE Developed Markets ETF (VEA)
-
Expense Ratio: 0.05%
-
AUM: $120+ billion
-
What It Does: Offers exposure to developed markets outside of North America, including Europe, Australia, and the Far East.
-
Why We Like It: International diversification is key for a global portfolio. VEA does it with low fees and broad coverage.
5. Vanguard FTSE Emerging Markets ETF (VWO)
-
Expense Ratio: 0.08%
-
AUM: $80+ billion
-
What It Does: Targets emerging markets such as China, India, Brazil, and South Africa.
-
Why We Like It: While more volatile, emerging markets offer long-term growth potential. VWO is a cost-efficient way to get in the game.
6. Vanguard Dividend Appreciation ETF (VIG)
-
Expense Ratio: 0.06%
-
AUM: $70+ billion
-
What It Does: Focuses on high-quality companies with a history of growing dividends year over year.
-
Why We Like It: Ideal for income investors who want exposure to reliable, financially sound companies with rising payouts.
7. Vanguard Real Estate ETF (VNQ)
-
Expense Ratio: 0.12%
-
AUM: $60+ billion
-
What It Does: Invests in Real Estate Investment Trusts (REITs), offering access to the commercial real estate sector.
-
Why We Like It: Real estate offers portfolio diversification and income. VNQ is a simple, liquid way to tap into this traditionally hard-to-access asset class.
Final Thoughts
Whether you’re building a diversified portfolio from scratch or looking to add cost-effective funds to an existing one, these Vanguard ETFs offer exceptional value. With their strong performance histories, enormous asset bases, and razor-thin expense ratios, they remain some of the best tools available for long-term investors. As always, consider your personal financial goals and risk tolerance before investing.
Disclosure: This article is for informational purposes only and does not constitute investment advice. Always consult with a financial advisor before making investment decisions.

Comments
Post a Comment