10 Best Vanguard ETFs for 2023 (2024)

FAQs

10 Best Vanguard ETFs for 2023? ›

Our pick for the best overall Vanguard ETF is Vanguard Total World Stock ETF. For a 0.07% expense ratio, Vanguard Total World Stock ETF offers a globally diversified exposure across over 9,500 stocks.

Our pick for the best overall Vanguard ETF is Vanguard Total World Stock ETF. For a 0.07% expense ratio, Vanguard Total World Stock ETF offers a globally diversified exposure across over 9,500 stocks.

The fastest growing fund managed by U.S. asset management company Vanguard is the Vanguard Energy Index Fund. Over the year to January 16, 2023, the ETF generated an annual return of 44.19 percent. Vanguard's fastest growing mutual fund was also the Vanguard Energy Index Fund, which grew by 38.4 percent.

The iShares Semiconductor ETF (SOXX) claims top honors among non-leveraged ETFs with a compound annual return of 22.4%.

We've increased our forecast for year-end 2023 core inflation, which excludes volatile food and energy prices, from 3.0% to 3.3%. The wait for a downturn in the U.S. labor market goes on. We anticipate an unemployment rate of around 4.5% at year-end 2023, the lower end of our previous expectation of 4.5%–5.0%.

Our base case of a global recession in 2023 signifies slowing consumer demand and modest job losses that should put inflation on a downward trend through 2023, with central bankers reasonably looking to achieve their 2% inflation targets in 2024 or 2025.

What are the top 5 ETFs to buy? ›

Two of the most popular ETFs include index funds based on the Standard & Poor's 500 index and the Nasdaq 100 index, which contain high-quality businesses listed on American exchanges: Vanguard S&P 500 ETF (VOO), with an expense ratio of 0.03 percent. Invesco QQQ Trust (QQQ), with an expense ratio of 0.20 percent.

In the last decade, Invesco Dynamic Semiconductors ETF (PSI) delivered the highest 10-year return at 23.19%.

Our pick for the best Vanguard mutual fund is VTWAX. This fund features diversification among more than 9,500 large-, mid-, and small-cap stocks from U.S., international developed and emerging markets.

This ETF could have a lot of potential in 2023 and beyond.

With the market in a slump, now could be a smart time to buy. It's more important than ever, however, to choose your investments wisely.

1. Vanguard S&P 500 ETF (VOO -0.75%) Legendary investor Warren Buffett has said that the best investment the average American can make is a low-cost S&P 500 index fund like the Vanguard S&P 500 ETF.

Fidelity MSCI Energy Index ETF (FENY) is not only the top-rated Energy ETF but is also the overall top-rated sector ETF out of the 289 sector ETFs that my firm covers.

Should I invest in both VOO and VTI? ›

Does it make sense to have both VTI and VOO? For most investors, it probably doesn't make sense to own both. VTI and VOO both provide great diversification at a low cost. However, you may find that your retirement plan at work doesn't offer a total stock market index fund like VTI.

In the last 30 Years, the Vanguard S&P 500 (VOO) ETF obtained a 9.73% compound annual return, with a 14.96% standard deviation. In 2022, the ETF granted a 1.37% dividend yield.

In Vanguard's most recent update of its asset-class forecasts, it estimated that a core bond portfolio—as measured by the firm through the Bloomberg U.S. Aggregate Bond Index—would return 3.6%-4.6% a year over the next 10 years. That's down slightly from an estimated range of 4.1%-5.1% in its December 2022 report.

Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent.

10% Return for S&P 500 a Real Possibility by End of 2023

And in today's market, with its newfound emphasis on fundamentals, earnings really matter. Short of a recession — a very real possibility — consensus estimates are for about 5% earnings growth for S&P 500 companies in 2023.

There will be economic slowdowns, potential recessions, squeezed corporate margins and rising unemployment globally. However, as the year progresses, reasons for optimism are likely to emerge and 2023 should be much more positive for investors than 2022. Stock markets are forward-looking – investors look ahead.

Vanguard is the king of low-cost investing, making it ideal for buy-and-hold investors and retirement savers. But beginner investors and active traders will find the broker falls short despite its $0 stock trading commission, due to the lack of a strong trading platform and accessible educational resources.

What is the 5 year forecast for Vanguard S&P 500? ›

Vanguard S&P 500 ETF quote is equal to 395.010 USD at 2023-06-11. Based on our forecasts, a long-term increase is expected, the "VOO" fund price prognosis for 2028-05-31 is 512.801 USD. With a 5-year investment, the revenue is expected to be around +29.82%. Your current $100 investment may be up to $129.82 in 2028.

Market risk

The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at. Rather, you should consider the number of different sources of risk you are getting with those ETFs.

Should you invest in ETFs? Since ETFs offer built-in diversification and don't require large amounts of capital in order to invest in a range of stocks, they are a good way to get started. You can trade them like stocks while also enjoying a diversified portfolio.

Between 1977 and 1990 the fund averaged over a 29% annual return, making Magellan the best performing mutual fund in the world.

In many cases, buying and selling Vanguard funds directly through Vanguard is less expensive than making a purchase through a broker. That's because Vanguard has low to non-existent fees and commissions and most brokers charge commissions.

Vanguard is best for:

Index fund and ETF investors.

What is the best performing investment last 10 years? ›

We'll start with the largest-by-a-mile dividend growth ETF: the Vanguard Dividend Appreciation ETF (VIG, $161.61), which, at $69 billion in assets under management (AUM), is nearly three times the next biggest option.

Over the last twenty years, the top-performing United States stocks are Monster Beverage, Apple, Nvidia, Booking Holdings, and Equinix. Monster Beverage is particularly interesting because the company was founded by South Africans who moved to the United States.

The largest Vanguard ETF is the Vanguard 500 Index Fund VOO with $314.81B in assets. In the last trailing year, the best-performing Vanguard ETF was VGT at 32.40%. The most recent ETF launched in the Vanguard space was the Vanguard Short-Term Tax-Exempt Bond ETF VTES on 03/09/23.

VTI vs VOO: The Verdict

If you like the name-brand recognition of the S&P 500 and want to stick to large-caps, then VOO might be the better option. If you don't mind some mid and small-cap exposure, then VTI could be a good pick. Investors can potentially also use both as tax-loss harvesting pairs.

Best day of the week to buy stocks. Mondays and Fridays can be slightly more volatile for buying and selling stocks than in the middle of the week. On Mondays, markets can be affected by news from the weekend.

So when is the ideal time? "Middle of the day is generally best, and if there are international (European) securities in the ETF, trading in the morning will ensure you get prices closest to fair value," Nadig explains. Now that you know what time of day is best, let's look at what kind of order you're planning on.

Although their names and tickers look very similar, you should note that they are two different funds with different investment objectives. The key difference between VT and VTI is that VT offers exposure to a globally diversified portfolio while the VTI offers exposure to the entire US market.

Now is a great time to load up on quality ETFs.

The stock market has been rough this year, which can make it a daunting time to invest. But this volatility will pass, and over the long term, it's extremely likely the market will see positive average returns. By investing now, you can take advantage of that rebound.

What is the best Vanguard fund to fight inflation? ›

VTI is an extremely diversified fund. Its large amount of holdings reflect the entire universe of investable U.S. securities. The fund has exposure to small-cap stocks which can be more volatile than mid- or large-cap holdings. The fund has a beta of 1 when compared to the larger market.

Does it make sense to have both VTI and VOO? For most investors, it probably doesn't make sense to own both. VTI and VOO both provide great diversification at a low cost. However, you may find that your retirement plan at work doesn't offer a total stock market index fund like VTI.

An inverse ETF is set up so that its price rises (or falls) when the price of its target asset falls (or rises). This means the ETF performs inversely to the asset it's tracking. For example, an inverse ETF may be based on the S&P 500 index.

Holding period:

If you hold ETF shares for one year or less, then gain is short-term capital gain. If you hold ETF shares for more than one year, then gain is long-term capital gain.

Look for funds that have expense ratios below 1 percent. If you can handle the $3,000 minimum initial investment, I like the low-cost Vanguard Total Stock Market Index Fund and the Vanguard Total International Stock Index Fund (vanguard.com; 877-662-7447).

The Vanguard Total Stock Market ETF is one of the best Vanguard funds for retirement according to Redditors and market analysts. The ETF, which seeks to track the performance of the CRSP US Total Market Index, gives you exposure to some of the biggest names like Apple Inc.