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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.
Our top picks of trading platforms to invest in Vanguard funds
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8 best Vanguard funds of 2023
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.
Logo
Mutual fund & ticker
Mutual fund description
YTD return
Expense ratio
Vanguard Total World Stock ETF (VT)
VT offers global equity exposure, comprising both U.S. and international stocks for diversification.
6.44%
0.07%
Vanguard FTSE Developed Markets ETF (VEA)
VEA tracks the FTSE Developed All Cap ex US Index, offering international market exposure.
2.64%
0.05%
Vanguard 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 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 Total International Stock ETF (VXUS)
VXUS provides comprehensive exposure to global equity markets, excluding the United States.
1.85%
0.07%
Vanguard 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 Value ETF (VTV)
VTV tracks the CRSP US Large Cap Value Index, emphasizing undervalued, high-quality stocks.
-2.49%
0.04%
Vanguard 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
Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table below or jump straight to the best ETF brokers 2023.
Sign up for an account. Provide your personal information and sign up.
Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
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
Compare more trading platforms to invest in Vanguard funds
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Frequently asked questions about the best Vanguard funds
Based on our analysis of YTD returns, here are the top 3 Vanguard funds right now:
Vanguard Total World Stock ETF (VT)
Vanguard FTSE Developed Markets ETF (VEA)
Vanguard Total International Stock ETF (VXUS)
Based on our analysis of YTD returns, the Vanguard Total World Stock ETF (VT) has the highest return of 2023 so far.
When comparing Vanguard funds, look at things like the fund's YTD return, 1 year and 5 year historical returns. This will give you an idea of the fund's performance over both the short and the long-term.
Kliment Dukovski is a personal finance writer at Finder, specializing in investments and cryptocurrency. He's written more than 700 articles to help readers compare the best trading platforms, understand complex investment terms and find the best credit cards for their needs. His expert commentary has been featured in such digital publications as Fox Business, MSN Money and MediaFeed. He’s also well-versed in money transfers, home loans and more — breaking down these topics into simple concepts anyone can understand. In another life, Kliment ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies.
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