Vanguard: An Overview

The Vanguard Group is among the largest investment companies in the world. At its core is a commitment to providing individual investors with low-cost solutions to gaining wealth. Vanguard is known fo🔴r its mutual funds and is also a major player in the business of exchange-traded funds (ETFs).

Vanguard manages to keep its low-cost edge across the fund spectrum based on a unique ownership structure despite competition from the likes of🍌 other fund companies like Schwab and Fidelity that promise low fees on certain funds.

While many of these other companies are either corporate-owned or owned by third parties, Vanguard is owned by its funds, which are owned by its investors. This means that the profits generated by operating the funds are returned to investors i🍷n the form of lowe𒉰r fees. As such, it makes it very difficult for other companies, which are beholden to their shareholders, to compete on price.

Vanguard introduced its suite of ETFs when the investment product gained widespread popularity. The mutual fund operator has since become the second-largest provider of ETFs (by market cap) behind Blackrock. Vanguard’s unique cost structure, the economies of scale it has achieved, and the total number of assets under management (AUM)❀ allow it to offer its ETFs at the lowest cost available in the market. We've listed 10 of the firm's cheapest ETFs by their expense ratio.

The Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF is one of Vanguard’s lowest-cost ETFs with a 0.03% 澳洲幸运5官方开奖结果体彩网:expense ratio. It is also among the largest with $1.1 trillion in assets.

The fund seeks to track the performance of the 澳洲幸运5官方开奖结果体彩网:Standard & Poor’s (S&P) 500 Index. The portfolio thus holds the same names as the index. The median 澳洲幸运5官方开奖结果体彩网:market capitalization of companies in the fund is $212 billion and the 澳洲幸运5官方开奖结果体彩网:top holdings are:

• Microsoft
• Apple
• NVIDIA
• Amazon
• Google

The top three sectors invested by the ETF included information technology, financials, and health care.

The Vanguard S&P 500 ETF returned 15.21% annually over the last five years and 20.81% during the past year. Year-to-date (YTD), shares returned 26.63% when based on the ETF's 澳洲幸运5官方开奖结果体彩网:net asset value (NAV, as of Nov. 8, 2024.

The Vanguard Total Stock Market ETF (VTI)

The 澳洲幸运5官方开奖结果体彩网:Vanguard Total Stock Market ETF is Vanguard’s oldest and largest ETF with $1.5 trillion in AUM. The fund covers the entire U.S. stock market for a rock bottom fee of 0.03%.

The ETF holds more than 3700 stocks in its 澳洲幸运5官方开奖结果体彩网:portfolio, with an average market cap of $150 billion. The top three sectors are technology, 澳洲幸运5官方开奖结果体彩网:consumer discretionary, and industrials. Its top holdings are Microsoft, Apple, NVIDIA, Amazon, and Google.

According to Vanguard, the fund's 10-year return is 12.39%, its five-year return is 14.52%, and its YTD return is 19.58%, as of Nov. 8, 2024.

The Vanguard Total Bond Market ETF (BND)

With $311.7 billion in assets under management, the Vanguard Total Bond Market ETF offers investors broad exposure to the 澳洲幸运5官方开奖结果体彩网:fixed-income market. The expense ratio charged by Vanguard for this ETF is 0.03%.

The fund holds 11,341 bonds in its portfolio, including 47.40% allocated to Treasury/agency bonds, 19.80% to government 澳洲幸运5官方开奖结果体彩网:mortgage-backed bonds, and 15.20% to industrial bonds.

The fund has returned -0.12% annually over the last five years and 1.82% over the last 10.

The Vanguard Growth ETF (VUG)

The Vanguard Growth ETF invests in stocks of large companies with high-growth potential and charges an expense ratio of 0.04%. The $220 billion in assets are weighted towards 澳洲幸运5官方开奖结果体彩网:technology stocks.

Microsoft, Apple, NVIDIA, Amazon, and Google comprise the top five out of 200 holdings.

The fund returned 15.55% annually over the last 10 years, 19.00% over the last five years, and 23.59% year-to-date.

The Vanguard Large-Cap ETF (VV)

The Vanguard Large-Cap ETF invests in stocks representing the largest companies in the U.S. stock market, which ranges from large 澳洲幸运5官方开奖结果体彩网:multinational companies to mid-cap ones. The fund’s expense ratio is 0.04%.

The fund, which has $48.5 billion in assets, holds more than 510 stocks in its portfolio, with an average market cap of $211.1 billion. Technology, consumer discretionary, industrials, and health care represent the biggest sectors within the fund and the top five holdings include Microsoft, Apple, NVIDIA, Amazon, and Google.

The fund's 10-year annual return is 12.89%, its five-year return is 15.15%. It returned 20.68% on a YTD basis.

The Vanguard Value ETF (VTV)

The Vanguard Value ETF invests in large-cap value stocks in the U.S. and comes with an expense ratio of 0.04% This ETF has $163.5 billion in AUM and holds 342 stocks from numerous industry groups: financials, health care, and industrials are the largest sectors.

The average 澳洲幸运5官方开奖结果体彩网:market cap of the companies in the ETF is $125.5 billion. Its top five holdings are:

• Berkshire Hathaway
• Broadcom
• JPMorgan Chase
• Exxon Mobil Corp.
• UnitedHealth

Over the last 10 years, the fund returned 10.42% annually and over five years, 11.51%. Its year-to-date return was 17.22%.

The Vanguard Midcap ETF (VO)

The Vanguard Midcap ETF has an expense ratio of 0.04%, providing 澳洲幸运5官方开奖结果体彩网:investors with low-cost access to a 澳洲幸运5官方开奖结果体彩网:diversified group of medium-sized companies in the U.S. It has $159.2 billion AUM, which is invested in 329 stocks that have a median market cap of $31.3 billion.

Industrials accounts for more than 20.5% of the fund's portfolio, followed by techonology (14.10%) and consumer discretionary stocks (12.70%). The top five holdings are Amphenol, TransDigm Group, Constellation Energy, Cintas, and Motorola.

The fund's 10-year return is 9.80% and the five-year return is 10.89%. It has returned 19.36% 澳洲幸运5官方开奖结果体彩网:year-to-date.

The Vanguard Small-Cap ETF (VB)

The Vanguard Small-Cap ETF invests in a diversified group of small companies. The fund has an expense ratio of 0.05% and $135.8 billion in assets under management.

VB is invested in 1,417 stocks, with 澳洲幸运5官方开奖结果体彩网:industrials, consumer discretionary, and financials representing the biggest sectors. The fund's top five holdings are Targa Resources, Axon Enterprise, Builders FirstSource, Deckers Outdoor, and PTC Inc.

Over the last 10 years, the ETF returned 9.24% annually and, over the last five, 10.14%. Its year-to-date return was 18.94%.

The Vanguard Short-Term Inflation-Protected Sec🎃urities ETF (VTIP)

With $51.6 billion in AUM and an expense ratio of 0.04%, the Vanguard Short-Term Inflation-Protected Securities ETF gives investors access to bonds backed by the federal government. It also aims to provide protection from 澳洲幸运5官方开奖结果体彩网:inflationary risks or other unexpected inflationary surprises.

The fund is invested in just 27 government-backed bonds. Among the holdings, 21.90% are three to four-year bonds while two-to-three-year bonds comprise 19.10% of the portfolio. The remaining 59% consists of bonds with maturities of less than two years and four to five years.

The fund, whose benchmark index is the Bloomberg US 0-5 Year TIPS Index, returned 3.41% annually in five years and 4.38% year-to-date.

The Vanguard FTSE Developed Markets ETF (VEA)

With more than $185.4 billion in AUM, the Vanguard FTSE Developed Markets ETF has become a very popular low-cost way for investors to gain broad exposure to foreign 澳洲幸运5官方开奖结果体彩网:developed economies and markets. The fund’s 澳洲幸运5官方开奖结果体彩网:expense ratio is 0.06%.

The fund invests heavily in the European and Pacific markets and holds almost 4,000 stocks. The median market cap for the fund is $40.3 billion. The top five holdings are Novo Nordisk, ASML Holding, Toyota, Nestle, and Samsung Electronics.

The fund returned 5.41% annually over the last 10 years and 6.46% over the last five years. Year-to-date, it is up 6.43%.