10 Best Vanguard ETFs To Invest In for 2024

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When it comes to choosing the best Vanguard exchange-traded funds, investors have 86 options they can select. This can make the choice seem overwhelming. But if you understand what to look for in an ETF, you can narrow down your choices and pick the best.

Check Out: 3 Things You Must Do When Your Savings Reach $50,000

Diversifying your portfolio is key, and ETFs already provide a diversified option. By adding several of the following funds to your portfolio, you can create an investment account that has the potential to meet or exceed average returns.

What Are the Best Vanguard ETFs?

The best Vanguard ETF for you depends on your investment strategy, your areas of interest and the other products in your portfolio. Here are 10 picks to consider:

• Best for risk-averse investors: Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)
• Best for S&P 500 investments: Vanguard S&P 500 ETF (VOO)
• Best for REIT investments: Vanguard Real Estate ETF (VNQ)
• Best diversified ETF: Vanguard Total Stock Market ETF (VTI)
• Best for internationally focused investors: Vanguard Total International Stock ETF (VXUS)
• Best for high 10-year returns: Vanguard Information Technology ETF (VGT)
• Best bond ETF: Vanguard Total Bond Market ETF (BND)
• Best for income investors: Vanguard Emerging Markets Government Bond ETF (VWOB)
• Best ESG ETF: Vanguard ESG US Stock ETF (ESGV)
• Best for large-cap growth stock investments: Vanguard Russell 1000 Growth ETF (VONG)

1. Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)

With an affordable price below $50 per share and a super-low expense ratio of 0.04%, the Vanguard Short-Term Inflation-Protected Securities ETF is a great place to park your money to hedge against high inflation. It tracks the performance of inflation-protected public obligations of the U.S. Treasury. The interest and principal are adjusted for inflation. Morningstar gives it a rating of five stars in the category of inflation-protected bond funds.

2. Vanguard S&P 500 ETF (VOO)

Investors look to the S&P 500 for blue chip stock picks that provide high growth in the long term. The Vanguard S&P 500 ETF tracks the S&P 500. Representing 500 of the largest companies in the U.S., the index typically reflects the overall growth of the U.S. stock market in general. The fund has been around since 2010. It has returned an average of 14.24% per year over the last three years and has a low expense ratio of 0.03%.

3. Vanguard Real Estate ETF (VNQ)

Real estate investment trusts are a good way to invest in real estate with none of the time investment or risks inherent in managing a property. With a price just over $80 per share, the Vanguard Real Estate ETF represents a good way to diversify your portfolio and get into commercial real estate investment. The ETF tracks the return of the MSCI US Investable Market Real Estate 25/50 Index, which includes stocks of American companies in the real estate sector.

4. Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF tracks the performance of the overall U.S. stock market. A large-blend ETF, it has returned 19.20% over the past 12 months, making it one of the best-performing funds on this list. It is also available as an Admiral Shares mutual fund.

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5. Vanguard Total International Stock ETF (VXUS)

If you’re looking to diversify your portfolio with a large basket of international stocks, consider the Vanguard Total International Stock ETF. The ETF tracks the performance of the FTSE Global All Cap ex US Index, giving you exposure to developed and emerging non-U.S. markets. With 12-month returns over 15% and a dividend yield of 3.01% for less than $60 per share as of Feb. 27, this is a great value ETF for international exposure.

6. Vanguard Information Technology ETF (VGT)

The Vanguard Information Technology ETF is a high-growth ETF with potential for high long-term returns. It has returned 42.04% over the past year and has a market price of $514 as of Feb. 27. It is passively managed and tracks the performance of a benchmark index representing stocks in the IT sector.

7. Vanguard Total Bond Market ETF (BND)

Bonds tend to be a more stable investment than stocks, and the Vanguard Total Bond Market ETF has maintained a beta of 1% to 1.01% over 10 years, which indicates average volatility and may appeal to those who do not have high risk tolerance. With a low expense ratio of 0.03% and a price under $75 per share as of Feb. 27, Vanguard says the ETF has a “relatively high potential for investment income.”

8. Vanguard Emerging Markets Government Bond ETF (VWOB)

If you’re seeking a stable fund to provide retirement income, the Vanguard Emerging Markets Government Bond ETF is a passively managed fund that tracks the performance of the Bloomberg USD Emerging Markets Government RIC Capped Index. With a 30-day SEC yield of 6.84%, returns around 4.97% over the last 12 months and an expense ratio of 0.20%, it has been rated as best for investors seeking stable income from their portfolio.

9. Vanguard ESG US Stock ETF (ESGV)

Many people today seek investments that align with their values. ESG stocks allow you to support companies with exceptional principles when it comes to environmental, social and governance factors. The Vanguard ESG U.S. Stock ETF tracks the performance of U.S. companies with a focus on ESG factors, represented on the FTSE US All Cap Choice Index. The fund includes large-, mid- and small-cap domestic stocks and offers high returns over 6.4% year to date.

10. Vanguard Russell 1000 Growth ETF (VONG)

One of Vanguard’s highest-performing ETFs is the Russell 1000 Growth ETF, which tracks the Russell 1000 Growth Index. The index is made up of mostly U.S. stocks, and it’s considered to be a barometer of large-cap U.S. stock returns. Returning an average of 15.90% annually since its inception, the ETF has also performed well in the shorter term, returning 8.89% year to date and 34.94% over the past year.

Note, however, that the fund rates a 4 on a scale of 1 to 5 for risk/reward. It’s best for investors willing to accept significant risk for the opportunity to earn large returns.

Final Take

Experts recommend ETFs as an easy way to build a diversified portfolio. You can get started by opening a Vanguard account and making your first investment for just $1.

As always, GOBankingRates’ picks do not represent investment advice, and you should speak to a financial planner to create an investment portfolio that matches your needs and risk tolerance.

Daria Uhlig contributed to the reporting for this article.

Data is accurate as of Feb. 27, 2024, and is subject to change.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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