When it comes to choosing the best Vanguard exchange-traded funds, investors have more than 90 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.
9 Best Vanguard ETFs To Invest In for 2025
The best Vanguard ETFs can offer broad market exposure, low fees and strong long-term performance. The right choice for you depends on your investment strategy, your areas of interest and the other products in your portfolio.
Here are nine picks to consider:
| ETF | Ticker | Dividend Yield | 1-Year Return |
|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities ETF | VTIP | 2.62% | 3.66% |
| Vanguard S&P 500 ETF | VOO | 1.36% | 2.91% |
| Vanguard Real Estate ETF | VNQ | 4.01% | 0.62% |
| Vanguard Total Stock Market ETF | VTI | 1.36% | 1.80% |
| Vanguard Total International Stock ETF | VXUS | 3.15% | 0.08% |
| Vanguard Total Bond Market ETF | BND | 3.65% | 1.30% |
| Vanguard Emerging Markets Government Bond ETF | VWOB | 6.20% | -1.29% |
| Vanguard ESG US Stock ETF | ESGV | 1.16% | 1.88% |
| Vanguard Russell 1000 Growth ETF | VONG | 0.60% | 3.52% |
1. Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)
With an affordable price below $50 per share and a super-low expense ratio of 0.03%, The Vanguard Short-Term Inflation-Protected Securities ETF is worth a look.
- Great choice for risk-averse investors because it hedges your money 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.
- The ETF has returned 2.95% so far this year.
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.
- Captures the performance of 500 top U.S. companies, making it a benchmark for overall market growth.
- This fund has been around since 2010.
- It has returned an average of 9.03% per year over the last three years and has a low expense ratio of 0.03%.
- Consider it if you’re looking for exposure to the entire range of stocks represented by the S&P 500 index.
3. Vanguard Real Estate ETF (VNQ)
With a price of 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.
- Provides real estate exposure without the hassle of owning or managing property.
- It 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.
- This ETF emphasizes income (dividends) over growth.
- Its most recent quarterly dividend, paid on March 27, was $0.93.
4. Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF offers broad exposure to the entire U.S. equity market, including small-, mid- and large-cap stocks. This makes it a more diverse fund than most of the others in this roundup.
- Tracks the performance of the overall U.S. stock market.
- A large-blend ETF, it has returned 7.06% over the past 12 months.
- It is also available as an Admiral Shares mutual fund.
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.
- This is an aggressive fund with 12-month returns of over 6%.
- It trades for less than $60 per share as of April 11.
6. Vanguard Total Bond Market ETF (BND)
Bonds tend to be a more stable investment than stocks, and the Vanguard Total Bond Market ETF may appeal to conservative investors seeking steady income with moderate volatility.
- This fund has maintained a beta of 1% to 1.01% over 10 years, indicating average volatility.
- Low expense ratio of 0.03%.
- Priced under $75 per share as of April 11.
- Vanguard says the ETF has a “relatively high potential for investment income.”
7. 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 might be worth considering.
- This fund is passively managed and tracks the performance of the Bloomberg USD Emerging Markets Government RIC Capped Index.
- Has a 30-day SEC yield of 6.63%.
- Has returned around 6.98% over the last 12 months.
- With an expense ratio of 0.15%, it has been rated as best for investors seeking stable income from their portfolios.
8. 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.
- It has had three-year annualized returns of 7.87% and five-year returns of 17.87%.
- Whereas similar funds have an average expense ratio of 0.76%, ESGV’s is just 0.09%.
9. 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.
- Has returned an average of 15.78% annually since its inception.
- This ETF also has a low expense ratio of 0.07%.
- Note: This 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.
Why Invest In Vanguard ETFs?
All ETFs provide diversity within the theme of the fund — corporate bonds or tech stocks, for example. Investing in multiple funds to cover a wider swath of the markets further diversifies your holdings.
The best Vanguard’s ETFs are especially worth considering because, as a customer-owned company, it keeps fees well below average.
Vanguard ETFs vs. Other Investment Options
ETFs are just one way to invest. Some investors might prefer other options, such as mutual funds or individual stocks.
Each option has its own benefits and drawbacks, which you’ll see in the following table.
| Characteristic | ETFs | Mutual Funds | Individual Stocks |
|---|---|---|---|
| Fees | Management expenses | Management expenses | No fees for self-directed trading through commission-free brokerage |
| Minimum To Invest | Price of one share; some brokers allow purchase of fractional shares | $0 to $3,000 | Price of one share; some brokers allow purchase of fractional shares |
| Trading Flexibility | Whenever markets are open | Once per day, after trading ends | Whenever markets are open |
| Choice of Investments | Fewer choices | More choices | Vast number of choices |
| Tax-Efficiency | Some management transactions can produce taxable capital gains | Trades within portfolio, distributions, management transactions can produce taxable capital gains | No taxable capital gains until you sell |
Risks of Investing in Vanguard ETFs
The risk associated with a particular ETF depends on the fund’s holdings.
For example, technology-themed ETFs are high-risk because tech stocks are high-risk. Investment-grade bond funds are lower risk because bonds are less risky.
Good To Know
Keep in mind that most ETFs are index funds, which means they try to match rather than beat the performance of their benchmark index.
When a particular index is down, the ETFs that tracks it will also be down.
Trends Shaping ETFs in 2025
On-again off-again trade tariffs and sanctions against U.S. trading partners and a escalating trade war between the U.S. and China have created volatility within stock and bond markets.
No one can predict what the administration’s next moves might be or how they’ll affect the markets.
If you choose to invest, invest for the long term, and never invest more than you can afford to lose.
How To Buy Vanguard ETFs: 6-Step Guide
Follow these steps to open an account and invest in the best Vanguard ETFs:
- Open an account on investor.vanguard.com.
- Fund your account.
- Select “Products & services” to drop down a list of options.
- Select ETFs.
- Select the “View all Vanguard ETFs” link.
- Research the various funds, and when you’re ready to invest, click the “Buy” button on the ETF’s product page.
FAQ
Here are answers to some commonly asked questions about the best Vanguard ETFs and how to invest.- What is the best Vanguard ETF for beginners?
- Beginning investors might start with a conservative fund such as VBIL, which invests in short-term Treasury bills. Treasury bills are extremely low-risk investments, and as of April 11, the fund had a 30-day yield of 4.21%.
- Should I invest in Vanguard ETFs in 2025?
- That is a highly personal decision you should base on your long-term financial goals, your budget and your tolerance for risk. A certified financial planner can help you determine whether investing is the right choice for you.
- Which Vanguard ETFs pay dividends?
- Two of the several Vanguard ETFs paying dividends are the Vanguard High Dividend Yield ETF (VYM) and Vanguard Dividend Appreciation ETF (VIG).
- Are Vanguard ETFs good for long-term growth?
- That depends on the fund and its objectives. Some are designed for growth. Others prioritize income or another objective.
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of April 11, 2025, 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.