Vanguard is renowned for its selection of low-cost exchange-traded funds (ETFs), which are often considered some of the most affordable options on the market. These ETFs are ideal for investors seeking to leverage the benefits of ETFs. With over 80 Vanguard ETFs to choose from, identifying the standout options can be challenging.
Bankrate conducted a comprehensive analysis of Vanguard’s entire ETF lineup, evaluating each fund’s long-term performance record, expense ratio, and suitability for today’s investors. Below are some of the top Vanguard ETFs based on these criteria.
(Please note: Data and returns are accurate as of Aug. 2, 2024.)
8 Best Vanguard ETFs
Top Large-Cap ETF – Vanguard S&P 500 Growth ETF (VOOG)
While Vanguard’s S&P 500 index fund (ticker symbol: VOO) garners significant attention, the Vanguard S&P 500 Growth ETF has consistently outperformed its counterpart. Over the past decade, this fund has delivered an impressive annual growth rate by focusing solely on growth stocks within the S&P 500 index. Despite its strong performance, the fund maintains a low expense ratio.
- 10-year returns (annual): 14.4 percent
- Expense ratio: 0.10 percent
Top Mid-Cap ETF – Vanguard Mid-Cap Growth ETF (VOT)
The Vanguard Mid-Cap Growth ETF comprises a diversified portfolio of medium-sized growth stocks. Tracking the CRSP U.S. Mid Cap Growth Index through passive management, this fund boasts a remarkably low expense ratio and has generated attractive annual returns.
- 10-year returns (annual): 9.9 percent
- Expense ratio: 0.07 percent
Top Small-Cap ETF – Vanguard S&P Small-Cap 600 Growth ETF (VIOG)
Investors seeking exposure to small-cap stocks can consider the Vanguard S&P Small-Cap 600 Growth ETF. This fund offers a diversified selection of small-cap stocks within the S&P 600 index, providing potential for significant long-term growth. Despite its performance, the fund maintains a reasonable expense ratio.
- 10-year returns (annual): 10.0 percent
- Expense ratio: 0.15 percent
Top Total Market ETF – Vanguard Total Stock Market ETF (VTI)
For investors seeking exposure to the overall market at a low cost, the Vanguard Total Stock Market ETF is an excellent choice. This ETF includes a wide range of companies across different market segments, providing exposure to nearly 4,000 companies. Additionally, the fund boasts an exceptionally low expense ratio.
- 10-year returns (annual): 12.2 percent
- Expense ratio: 0.03 percent
Top International Stock ETF – Vanguard Total World Stock ETF (VT)
The Vanguard Total World Stock ETF offers diversified exposure to over 9,000 companies worldwide. Outperforming other international ETFs over the past decade, this fund provides global market coverage at a low expense ratio.
- 10-year returns (annual): 8.6 percent
- Expense ratio: 0.07 percent
Top Sector ETF – Vanguard Information Technology ETF (VGT)
Investors seeking sector-specific exposure can consider the Vanguard Information Technology ETF, which focuses on the information technology sector. This fund has delivered impressive returns over the past decade and offers concentrated exposure to leading tech companies at a low cost.
- 10-year returns (annual): 20.0 percent
- Expense ratio: 0.10 percent
Top Government Bond ETF – Vanguard Short-Term Treasury ETF (VGSH)
With interest rates on the rise, the Vanguard Short-Term Treasury ETF provides investors with an opportunity to earn a decent yield while minimizing the impact of changing rates. This ETF invests in short-term U.S. Treasury bonds with a maturity of one to three years.
- 10-year returns (annual): 1.3 percent
- Expense ratio: 0.04 percent
Top Investment-Grade Bond ETF – Vanguard Long-Term Corporate Bond ETF (VCLT)
The Vanguard Long-Term Corporate Bond ETF focuses on high-quality, long-term corporate bonds. While this fund may be more sensitive to changes in interest rates compared to short-term bond ETFs, it can be a suitable choice in a declining rate environment. However, in a rising rate environment, this bond ETF may experience greater volatility.
- 10-year returns (annual): 2.9 percent
- Expense ratio: 0.04 percent
Key Takeaway
Vanguard’s range of low-cost ETFs makes it a top choice for index investors. By exploring their selection of ETFs, investors can access a variety of funds without incurring high expenses, allowing them to maximize their investment returns.
— This article includes contributions from Bankrate’s Brian Baker.
Editorial Disclaimer: Investors are encouraged to conduct thorough research on investment strategies before making decisions. Past performance of investment products does not guarantee future price appreciation.