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8 best Vanguard funds

Here are the best Vanguard index funds with low expense ratios and solid returns.

Vanguard offers one of the best selection of index funds to choose from. It can be an excellent choice for retirement investment or for taking advantage of large sector moves, such as moves in the financial sector, technology or utilities.

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8 best Vanguard funds of 2024

We selected these Vanguard equity funds based on dividend yields of at least 2%, expense ratios below 0.25% and assets under management (AUM) above $25 billion. Leveraged, inverse and currency hedged ETFs are not included.

LogoMutual fund & tickerMutual fund descriptionYTD returnExpense ratio
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard Total World Stock ETF (VT)VT offers global equity exposure, comprising both U.S. and international stocks for diversification.6.44%0.07%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard FTSE Developed Markets ETF (VEA)VEA tracks the FTSE Developed All Cap ex US Index, offering international market exposure.2.64%0.05%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard Dividend Appreciation ETF (VIG)VIG is a Vanguard ETF that tracks US stocks with a history of consistent dividend growth for income.2.33%0.06%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard FTSE All-World ex-US Index Fund (VEU)VEU mirrors the FTSE All-World ex-US Index, offering diverse global equity exposure.2.03%0.08%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard Total International Stock ETF (VXUS)VXUS provides comprehensive exposure to global equity markets, excluding the United States.1.85%0.07%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard FTSE Emerging Markets ETF (VWO)VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index, offering emerging market exposure.-1.28%0.08%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard Value ETF (VTV)VTV tracks the CRSP US Large Cap Value Index, emphasizing undervalued, high-quality stocks.-2.49%0.04%
Vanguard S&P Mid-Cap 400 Value ETF logoVanguard High Dividend Yield Index ETF (VYM)VYM tracks the FTSE High Dividend Yield Index, focusing on U.S. stocks with attractive dividend yields.-5.05%0.06%

How to invest in the best Vanguard funds

  1. Choose an online stock trading platform. Choose from our Top Picks above or jump straight to the best ETF brokers 2024.
  2. Sign up for an account. Provide your personal information and sign up.
  3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
  4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
  5. Place your order. Buy the stock. It’s that simple.

Why invest in the best Vanguard index funds?

Vanguard offers over 70 ETFs, making it convenient to choose the one that best suits your investment needs and goals. Vanguard ETFs can be a solid choice for:

  • Retirement investors. Aside from the standard S&P 500 funds, you get to choose bond ETFs and Treasury Inflation-Protected Securities funds. These are often low-risk, low-reward investments that protect your portfolio against inflation and can provide income in the form of interest.
  • Sector investors. Investors who want to invest in particular sectors without handpicking stocks may find Vanguard’s selection to be more than enough. Choose from funds that are entirely made up of financial stocks, technology stocks, healthcare, utilities, communication services and more.
  • Bond investors. If you don’t want to buy bonds individually, you can scoop up Vanguard ETFs and enjoy the benefit of owning multiple bonds without directly owning any. These didn’t perform well during the COVID pandemic except for the TIPS funds. However, in the long run, these could be decent low-risk, low-reward investments.

The best Vanguard index funds pros and cons

Vanguard funds come with some perks, including a low expense ratio. But there are some downsides as well.

Pros

  • Low expense ratio (i.e. annual fee)
  • Wide selection of funds
  • Most funds pay out dividends
  • Most ETFs have a mutual fund version

Cons

  • No disruptive technologies funds
  • No cryptocurrency funds

Alternatives to Vanguard funds

Vanguard isn’t the only provider of index funds. Other companies that offer ETFs include:

  • Goldman Sachs
  • iShares
  • ProShares
  • ARK
  • Invesco
  • SPDR
  • Charles Schwab

Frequently asked questions about the best Vanguard funds

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