Vanguard is the No. 2 asset manager in the world. And the best Vanguard ETFs are among the largest and most respected investment vehicles on Wall Street. With more than $10 trillion in assets under management, the revolutionary firm trails only BlackRock and by a modest margin.
Vanguard founder John C. Bogle is credited with popularizing low-cost, passive funds, and the best Vanguard ETFs are generally index funds that stick to a fixed list of components rather than engage in costly or complex strategies.
The funds aren’t flashy. And a consistent and predictable approach may even bore some investors, traders and speculators.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But it's hard to argue with the long-term outperformance of the low-cost, index-fund-based strategy.
What makes for the best Vanguard ETFs?
A long-term, hands-off approach: 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.
Most research shows this "active management" approach is ineffective, however. According to data from S&P Dow Jones Indices, the majority of actively managed funds involving large-cap stocks have underperformed the S&P 500 Index on an annual basis going back to 2010.
Minimize fees to maximize profits: The challenge with active funds is simple. Even if you do get a small amount of outperformance, the related expenses — tax inefficiency and higher brokerage fees, for example — erode those profits.
Investors should consider the "opportunity cost" higher fees create. Every penny you pay in fees reduces current profits. And it erases cash that could be invested and grow over time.
The best Vanguard ETFs put more of your cash to work for you instead of your overpriced asset manager.
Don't forget DRIP: A dividend reinvestment program, or DRIP, reinvests profits from your investments rather than having it sit idle in your account. The best Vanguard ETFs offer a no-fee, no-commission reinvestment program that allows you to reinvest your distributions and supercharge your returns over time.
The best Vanguard ETFs to buy now
The Vanguard funds included here all feature rock-bottom fees, large asset bases and long trading histories.
Here are the best Vanguard ETFs to buy now.
Data is as of September 9.
ETF | Expense Ratio | Assets Under Management | Inception Date |
Vanguard S&P 500 ETF (VOO) | 0.03% | $734.3 billion | September 7, 2010 |
Vanguard Total Stock Market ETF (VTI) | 0.03% | $527.5 billion | May 24, 2001 |
Vanguard High Dividend Yield Index ETF (VYM) | 0.06% | $64.4 billion | November 10, 2006 |
Vanguard Information Technology ETF (VGT) | 0.09% | $100.5 billion | January 26, 2004 |
Vanguard Total International Stock ETF (VXUS) | 0.05% | $101.9 billion | January 26, 2011 |
Vanguard S&P 500 ETF
- Assets under management: $734.3 billion
- Expense ratio: 0.03%, or $3 per year for every $10,000 invested
The SPDR S&P 500 ETF Trust (SPY) is the oldest S&P 500 index fund out there, but the Vanguard S&P 500 ETF (VOO) recently surpassed it as the largest ETF as measured by assets. That's because VOO remains the go-to option for most long-term investors thanks to its low-cost structure and its exposure to the biggest names on Wall Street.
SPY charges 0.09% annually vs just 0.03% for VOO. Both are passively managed funds tied to the S&P 500 Index of the largest U.S. corporations.
And there's no reason for most small-time investors to pay more for exposure to the exact same holdings. That list is led by must-own names such as Microsoft (MSFT), Nvidia (NVDA) and Apple (AAPL).
If you want to play the U.S. stock market over the years to come and do it efficiently, this is one of the best Vanguard ETFs to buy right now.
Vanguard Total Stock Market ETF
- Assets under management: $527.5 billion
- Expense ratio: 0.03%
Nearly as large but just as cheap, the Vanguard Total Stock Market ETF (VTI) is a one-stop shop for investors who want exposure to the whole U.S. stock market in a single vehicle. More than 3,500 different stocks make up this fund, representing all sectors up and down the market-cap scale.
The Vanguard Total Stock Market ETF does not treat every component equally, however. And it's weighted heavily toward the largest stocks, so no small start-up is going to sink your portfolio.
It's the largest ETF by assets outside the massive S&P 500 index funds such as VOO. A well-established, more diversified option for buy-and-hold investors, VTI is one of the best Vanguard ETFs to buy right now.
Vanguard High Dividend Yield Index ETF
- Assets under management: $64.4 billion
- Expense ratio: 0.06%
Slightly smaller than VTI but still with tens of billions of dollars under management, the Vanguard High Dividend Yield Index ETF (VYM) is one of the best Vanguard funds to buy for investors looking to reduce their risk profile and tap into long-term income potential.
VYM focuses on stocks that pay above-average dividends, with a total yield of about 2.5% right now that's about two times the dividend yield of the S&P 500.
Apart from the regular income, dividend investment strategies highlight companies capable of consistent profit and payout growth. These businesses generate ample cash flow, often based on operational excellence.
VYM is well-diversified, with about 580 total holdings. But it’s biased toward the financial sector, with about a quarter of assets in banks and insurers.
Top holdings include chipmaker Broadcom (AVGO), megabank JPMorgan Chase (JPM) and energy icon Exxon Mobil (XOM). These blue-chip names are good ballast for one of the best Vanguard ETFs.
Vanguard Information Technology ETF
- Assets under management: $100.5 billion
- Expense ratio: 0.09%
The flip side of low-risk dividend investing is speculating in high-growth tech stocks, with an emphasis on plowing cash into future opportunities rather than returning profits to shareholders.
That's what the Vanguard Information Technology ETF (VGT) has to offer: tech exposure to the exclusion of all others.
VGT's portfolio is composed of roughly 320 different stocks in the sector, ranging from the big names you know and love, such as Microsoft and Apple, as well as Nvidia, plus smaller hardware manufacturers and software firms.
If you take a long view of the stock market, it's difficult to imagine tech stocks won't continue to be the biggest and most successful companies. Their business models are light on raw materials and employees, and they're satisfying what seems an ever-expanding appetite for disruption.
If you're bullish on the high-tech future of AI, cloud computing and similar processes, VGT is one of the best Vanguard ETFs to buy now.
Vanguard Total International Stock ETF
- Assets under management: $101.9 billion
- Expense ratio: $0.05%
Each of the four funds we've discussed so far slices up the U.S. stock market in different but efficient ways.
Businesses beyond America's borders have a lot to offer, too. That's become particularly clear so far in 2025, with Asian and European stocks outperforming U.S. big tech and blue chip stocks.
The Vanguard Total International Stock ETF (VXUS) gets you that overseas exposure. VXUS is an "ex-U.S." offering designed to exclude companies in the United States and to ensure holdings don't overlap with any domestic stock ETFs.
A massive portfolio of more than 8,600 stocks does include plenty of familiar names, such as Taiwan Semiconductor (TSM), China-based Tencent Holdings (TCEHY), Germany-based SAP (SAP) and Netherlands-based ASML Holding (ASML).
Big international businesses such as these often provide just as much upside as U.S. names. And broadening your exposure via these overseas stocks can help smooth out volatility for you and your portfolio.
VXUS is one of the best Vanguard ETFs to buy because it accomplishes those worthy objectives.
Related content
- Kip ETF 20: The Best Cheap ETFs You Can Buy
- Best SPDR ETFs to Buy and Hold
- 5 Best Fidelity Mutual Funds to Buy Now
-
The Seven Best-Paying Side Gigs For RetireesIf you're worried you won't have enough saved for a comfortable retirement, or that life after work will be boring, these well-paid roles could be the answer.
-
$40,000 CD vs $40,000 High-Yield Savings Account - 3 Things Savers Should Consider NowBoth options offer risk-free methods to grow your savings. Learn how much you can earn with each, how they differ and which one suits you best.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to KnowIf you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both WorldsBefore investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
Markets Are Quiet Ahead of Fed Day: Stock Market TodayInvestors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
5 Multibagger Stocks With Amazing Returns in 2025multibagger stocks As the term suggests, multibagger stocks multiply your money – gains of 1,200%, for example. Here's where to look for that kind of performance this year.
-
Investing Freebies: Perks You Get for Owning These StocksWhile the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client ReviewsFinancial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop InvestmentsTruck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
