Vanguard Index funds are definitely one of the best choices for investors! So, find out which are the best vanguard index funds to invest in and make your choice.
The Vanguard Index funds are among the top choices for investors. Since this institution was founded, it has definitely shaken the industry up!
So, if you are looking for low-cost investment, better market exposure, diversification and higher returns, then Vanguard has the best funds to offer. Take a look at the best funds to buy and hold this financial institution offers and choose which one suits your investment better!
1. Vanguard Total Stock Market Index Fund (VTSAX)
VTSAX is one of the largest index fund, as it provides exposure to the entire US equity market. This means it covers from small- to large-cap growth and value stocks.
With over 3,500 stocks, this fund provides low costs, potential tax efficiency, and solid diversification. Besides, its fees reach 0.04% and it also pays out quarterly dividends for your investment. Bear in mind that the minimum investment for this fund is $3,000.
2. Vanguard 500 Index Fund Admiral Shares (VFIAX)
This fund is also among the top choices. It covers diverse industries as it offers exposure to the 500 largest companies in the US. Compared to VTSAX, this fund has a bit less exposure, but its current expense ratio is also 0.04% and it offers quarterly dividend payouts. The minimum investment is also $3,000.
3. Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)
As the best investment portfolio will always include a percentage dedicated to bonds, the VBTLX is definitely the greatest way to diversify in this sector! This index fund offers an investment mix of corporate and US government bonds, granting a broad exposure to the US bonds.
In this case, they count with monthly dividend payouts and a low fee that reaches 0.05%. The minimum investment is also $3,000.
4. Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)
If you are looking for a balanced portfolio, you will want to add some stocks from an international company. VTIAX is the fund that will lead you to gain equity exposure in international economies.
In this case, you will be reaching stock markets across the world except the US. Although this fund also pays out quarterly dividends and has the same minimum investment as the previous funds, it has a higher fee (0.11%).
5. Vanguard Real Estate Index Fund Admiral Shares (VGSLX)
If you want to add a real estate investment trust index fund to your portfolio, then you should take a look at VGSLX.
This fund counts with companies in the real estate business, that purchase office buildings, hotels, etc. Their performance is quite different than stocks and bonds, so it can be useful to add some diversification. Bear in mind that this fund has an expense ratio of 0.12% and that it may distribute higher dividend income. The minimum investment is also $3,000.
6. Vanguard Growth Index Fund Admiral Shares (VIGAX)
In this fund, you will find stocks of those large companies in the US that register a quick growth trend compared to the general market. Nevertheless, there is a much higher risk involved.
It has an expense ratio of 0.05% and has a quarterly dividend payouts. The minimum investment is equal to the previously mentioned funds.
7. Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Compared to the previous fund that was based on growth, this one offers a balanced index. If you invest in this fund, you will get exposure to a balanced mix of stocks and bonds.
Although the performance results might not be as high as in a total stock market fund, it involves less risk. The expense ratio reaches 0.07% and requires a minimum investment of $3,000.
8. Vanguard Dividend Growth Fund (VDIGX)
If you are searching for a more passive investment, you should take a look at this fund.
It is focused on top-notch companies that pay consistent dividends and are committed to increasing them over time. The risk, in this case, is that the fund is all equities and its dividend return may be lower than in the rest of the stock market. This fund has a higher fee, at 0.22%, and the same minimum required to invest.
9. Vanguard Tax-Managed Balanced Fund Admiral Shares (VYMFX)
As it figures in its name, this fund can provide more tax efficiency. It partly provides an exposure to mid and large-cap segments of the US stock market, while it invests 50% in tax-exempt municipal bonds.
This fund tracks the stock market while it also minimizes taxable dividend income. Although this fund has an expense ratio of 0.09%, it also requires a higher minimum investment that reaches $10,000.
10. Vanguard Target Retirement Funds
This fund you might want to hit when you reach your retirement age! In this case, you won't be dealing with choosing index fund types or rebalancing. The management will handle everything, from the diversification you need to auto-rebalance.
It is based on the retirement fund year you choose and it will alter the percentages as you get closer to your age of retirement. The expense ratio is 0.15% and a minimum starting investment of 1,000.