Top-Performing Vanguard Exchange-Traded Funds for Investment
Top Vanguard ETFs Offer Diversified Investment Opportunities in the Stock Market
Investors seeking a diverse portfolio of stocks and a low-cost approach to investing might find solace in Vanguard's extensive range of Exchange-Traded Funds (ETFs). Here's a roundup of some of the best Vanguard ETFs currently available in the stock market.
The Vanguard Total International Stock ETF (VXUS) is an "ex-U.S." offering that excludes companies in the United States. With more than 8,600 stocks from familiar names like Taiwan Semiconductor (TSM), China-based Tencent Holdings (TCEHY), Germany-based SAP (SAP) and Netherlands-based ASML Holding (ASML), VXUS provides overseas exposure and helps smooth out volatility for investors in the stock market. It currently manages $101.9 billion in assets and has an expense ratio of 0.05%.
For those interested in the tech sector, the Vanguard Information Technology ETF (VGT) comprises roughly 320 different stocks, including big names like Microsoft and Apple, as well as smaller hardware manufacturers and software firms in the stock market. With $100.5 billion in assets under management and an expense ratio of 0.09%, VGT is a well-established, more diversified option for buy-and-hold investors in the stock market.
Investors seeking income with a focus on dividend-paying stocks might find the Vanguard High Dividend Yield Index ETF (VYM) appealing. VYM focuses on stocks that pay above-average dividends and has about 580 total holdings, with a bias toward the financial sector in the stock market. It currently manages $64.4 billion in assets and has an expense ratio of 0.06%.
Minimizing fees is crucial to maximizing profits for investors, as every penny paid in fees reduces current profits and erases cash that could be invested and grow over time in the stock market. This is where Vanguard shines, with a reputation for offering low-cost, passive funds in the stock market. Vanguard founder John C. Bogle is credited with popularizing this approach.
The Vanguard Total Stock Market ETF (VTI) is a well-regarded, broad exposure to the entire U.S. stock market. With more than 3,500 different stocks representing all sectors up and down the market-cap scale, VTI is a well-established, more diversified option for buy-and-hold investors in the stock market. It currently manages $527.5 billion in assets and has an expense ratio of 0.03%.
Many exchange-traded funds claim to provide outperformance by overlaying complex screening methods onto the stock market and changing out holdings based on the latest info, but most research shows this "active management" approach is ineffective in the stock market. On the other hand, the best Vanguard ETFs are generally index funds that stick to a fixed list of components in the stock market.
Other popular choices among Vanguard ETFs include the Vanguard Total Bond Market ETF (BND) for bonds, the Vanguard Total International Stock ETF (VXUS) for international equity exposure in the stock market, and the Vanguard S&P 500 ETF (VOO) for tracking the S&P 500 with a very low expense ratio of 0.03% and strong historical returns in the stock market. The VOO is the largest ETF as measured by assets, with $734.3 billion in assets under management.
It's worth noting that the top holdings of VYM include chipmaker Broadcom (AVGO), megabank JPMorgan Chase (JPM), and energy icon Exxon Mobil (XOM) in the stock market.
In conclusion, the best Vanguard ETFs put more of your cash to work for you instead of your overpriced asset manager in the stock market. With a diverse range of ETFs catering to various investment needs and a commitment to low costs, Vanguard offers a solid choice for investors in the stock market.
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