Vanguard has become a household name in the investment world, known for its commitment to providing high-quality, low-cost mutual funds that perform well over the long term. With over 30 million investors worldwide and $7.2 trillion in assets under management, Vanguard has built a sterling reputation that few other asset managers can match.
In the U.S., Vanguard offers 204 funds with an average 2022 asset-weighted expense ratio of 0.08%, a testament to its commitment to low fees. These funds cover a broad range of asset classes, including domestic and international equities, fixed income, and alternative investments.
One of Vanguard's key strengths is its index funds, which kicked off the passive-investing revolution. These funds are designed to track a specific market index, such as the S&P 500, and offer broad exposure to a particular asset class. Some of the most popular Vanguard index funds include VFIAX (Vanguard 500 Index Fund Admiral Shares), VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares), and VBTLX (Vanguard Total Bond Market Index Fund Admiral Shares).
An index fund is an investment fund – either a mutual fund or an exchange-traded fund (ETF) – that is based on a preset basket of stocks, bonds, or other assets. Rather than trying to beat the market, index funds aim to match the performance of the underlying index. This approach has proven to be highly effective over the long term, as actively managed funds often struggle to outperform their benchmarks after accounting for fees.
If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX). This fund invests in a diversified portfolio of small-cap value stocks and has an expense ratio of just 0.07%.
Another popular Vanguard fund is the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), which tracks the performance of the CRSP US Total Market Index. This index covers over 3,600 stocks and represents over 98% of the total US equity market. With an expense ratio of just 0.04%, VTSAX offers investors broad exposure to the US stock market at a low cost.
For investors looking to diversify their portfolio with international equities, the Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) is worth considering. This fund tracks the performance of the FTSE Global All Cap ex US Index, which covers over 7,000 stocks in 46 countries outside the US. With an expense ratio of 0.08%, VTIAX offers low-cost exposure to international stocks.
Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the Vanguard S&P Mid-Cap 400 Growth ETF (AMEX:IVOG) is an exchange-traded fund that invests in mid-cap growth stocks. With an expense ratio of just 0.15%, IVOG offers investors a low-cost way to access this segment of the market.
Vanguard offers more than 80 exchange-traded funds (ETFs) tailored to a broad range of investment strategies and financial goals. These ETFs provide investors with the same low-cost, high-quality investment options as Vanguard's mutual funds, but with the added benefits of intraday trading and tax efficiency.
Overall, Vanguard's commitment to low fees and long-term growth has made it a top choice for many investors. By investing in Vanguard's index funds and other low-cost options, investors can build a diversified portfolio that is designed to perform well over the long term.
