8 Great Vanguard ETFs for a Low-Cost Core

Vanguard is best known as one of the foremost pioneers of low-cost investing, including in the exchange-traded fund (ETF) space.

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(Image credit: Courtesy of Vanguard)

Vanguard is best known as one of the foremost pioneers of low-cost investing, including in the exchange-traded fund (ETF) space. It's hardly alone in low costs anymore, of course. Providers such as Schwab, iShares and SPDR have all hacked away at each other with ever-shrinking fees.

But don't sleep on Vanguard ETFs.

The provider isn't always No. 1 among the cheapest index funds like it used to be, but it remains a low-cost leader across several classes. No matter where you look, it's usually among the least expensive funds you can buy.

And expenses matter. Let's say you put $100,000 into Fund A and another $100,000 into Fund B. Both funds gain 8% annually, but Fund A charges 1% in fees while Fund B charges 0.5%. In 30 years, that investment in Fund A will be worth a respectable $744,335. But Fund B? It'll be worth $865,775. That's about $120,000 lost to fees and missed opportunity cost as those expenses suck away returns that could compound over time.

Here, then, are eight of the best low-cost Vanguard ETFs that investors can use as part of a core portfolio. All of these index funds are among the least expensive in their class and offer wide exposure to their respective market areas.

Data is as of April 22. Yields represent the trailing 12-month yield, which is a standard measure for equity funds. All eight ETFs also are available from Vanguard as mutual funds.

Kyle Woodley
Senior Investing Editor, Kiplinger.com

Kyle is senior investing editor for Kiplinger.com. As a writer and columnist, he also specializes in exchange-traded funds. He joined Kiplinger in September 2017 after spending six years at InvestorPlace.com, where he managed the editorial staff. His work has appeared in several outlets, including U.S. News & World Report and MSN Money, he has appeared as a guest on Fox Business Network and Money Radio, and he has been quoted in MarketWatch, Vice and Univision, among other outlets. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.