7 Best Vanguard ETFs Of 2023 (2024)

The Vanguard Short-Term Inflation-Protected Securities ETF aims to provide stable returns no matter what’s happening with inflation. The fund is a great choice for investors who want a highly liquid fund that preserves the purchasing power of their cash.

VTIP tracks the Bloomberg US 0-5 Year TIPS Index and owns Treasury Inflation-Protected Securities(TIPS) with an average duration of 2.5 years. Bond prices are inversely correlated with interest rates—as interest rates rise, like we’re seeing now, shorter-duration bonds might experience small price declines.

The benefit of owning a short-duration TIPS fund like VTIP is that during periods of increasing interest rates and rising inflation, the fund’s value increases when inflation rises, helping to offset losses from rising interest rates.

The Vanguard S&P 500 Index Fund ETF is an index stalwart that tracks the S&P 500 at a bargain-basem*nt price of three basis points. Warren Buffett famously advised his estate to place 90% of his net worth in a similar low-cost S&P 500 fund for the benefit of his descendants—and it’s worth noting that VOO is one of our picks on the list of the

VOO tracks the performance of the 500 largest companies by market capitalization in the U.S. stock market. Among the largest holdings in the fund are well-known names like Apple Inc. (AAPL), Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN) and Tesla Inc. (TSLA).

This fund is appropriate as a core holding in a diversified portfolio with long-term investment goals. The 4 out of 5 risk score indicates that the fund is volatile and investors should be prepared to weather periodic drawdowns.

The Vanguard Emerging Markets Government Bond ETF owns treasury bonds issued by emerging market governments. VWOB is a passive ETF that aims to track the performance of the Bloomberg USD Emerging Markets Government RIC Capped Index.

Investors looking for international fixed income exposure and high yields might consider this low-cost bond fund. As might be expected from a high-yield fund, 44% of the holdings carry a bond credit rating lower than BBB, while 27% carry a BBB rating. Only 27% of the bonds are rated A or AA.

The fund owns around 750 bonds, with an average duration of 8.2 years, making it somewhat sensitive to losses as interest rates rise. However, if you choose to buy VWOB for the long term, new bonds with higher coupon rates will be added to the fund as old assets mature, boosting total returns over time.

The Vanguard Value Index Fund ETF fund tracks the returns of the CRSP U.S. Large Cap Value Index. Value investing aims to buy stocks that are trading for less than their intrinsic value, and studies have shown that value stocks outperform the overall stock market over the long term.

As the growth investing trend sputters, long-term investors might allocate a portion of their resources to resurgent value stocks via this ETF.

VTV owns 350 stocks, and the top 10 holdings represent 21% of the fund by market capitalization. Top holdings include Berkshire Hathaway Inc. (BRK.A), UnitedHealth Group Inc. (UNH), Johnson & Johnson (JNJ), JPMorgan Chase & Co. (JPM), Procter & Gamble Co. (PG) and Exxon Mobile Corp. (XOM).

The Vanguard Total International Stock Index Fund ETF tracks the performance of the FTSE Global All Cap ex US Index. Consider that U.S. equities comprise nearly 60% of the global stock market by market capitalization. VXUS can help provide the international equity diversification that your portfolio needs.

VXUS owns shares of approximately 7,900 non-U.S. based companies. The regional breakdown of those holdings is 25.2% emerging market companies, 39.5% European, 26.8% Pacific, 0.5% Middle Eastern and 8% North American.

The fund’s 10 largest holdings are 9.2% of assets, including Nestlé SA (NSRGY), Samsung Electronics Co. (005930.KS), Roche Holding AG (RHHBY), Tencent Holdings Ltd. (TCEHY) and ASML Holding NV (ASML). With a low 12.9 price-to-earnings (P/E) ratio, VXUS offers greater upside potential than the S&P 500’s 20.21 P/E ratio.

The Vanguard U.S. Minimum Volatility ETF is an actively-managed U.S. stock fund. The fund aims to deliver moderately lower volatility than the comparable market-cap-weighted Russell 3000 Index, covering roughly 98% of the investable U.S. stock market.

Investors who want to add ballast to their portfolios to help navigate the currently stormy equity conditions might consider owning VFMV. The fund’s goal is robust capital appreciation with relatively low volatility. Year to date, VFMV has delivered on this goal with a -6.9% loss in contrast to the Russell 3000’s -13.8% loss.

VFMV’s portfolio includes large-, mid- and small-cap stocks from various market sectors. The fund owns 162 stocks with a median market capitalization of around $41 billion. The top 10 holdings include Williams Companies Inc. (WMB), Bristol-Myers Squibb Co. (BMY), Eli Lilly and Co. (LLY), Consolidated Edison, Inc. (ED), Amgen, Inc. (AMGN) and Equity Commonwealth (EQC).

The Vanguard Real Estate ETF tracks the performance of the MSCI US Investable Market Real Estate 25/50 Index. VNQ owns stocks issued by real estate investment trusts (REITs) active in the commercial, storage, health care, office and industrial markets.

Real estate funds can be considered an inflation hedge, and they can also help diversify a portfolio concentrated on equities and bonds. Vanguard’s VNQ is one of the most affordable ways to get broad real estate market exposure, and the fund offers greater liquidity than owning real property or real estate crowdfunding investments.

VNQ owns roughly 160 stocks. The 10 largest holdings comprise 43% of the fund’s investments, including Prologis Inc. (PLD), American Tower Corp. (AMT), Crown Castle International Corp. (CCI), Equinix Inc. (EQIX), Public Storage (PSA) and Digital Realty Trust, Inc. (DLR).