3 Vanguard ETFs To Look At Besides VOO
Vanguard has been making some of the best ETFs on the market. One of their best ETFs would be VOO (S&P 500 ETF). It is a popular ETF that tracks the S&P 500 market. It is also one of Warren Buffett’s favorite ETFs. He likes it so much that he holds it in his portfolio.
Many investors claim they can beat the market. It is pretty hard to do. In any given year, the market can zoom, leaving our financial analysis in the dark. One of the simplest ways to gain wealth is through investing in VOO.
Vanguard is not just known for one ETF like VOO. They have created numerous ETFs that can help build your wealth. Will they be better than VOO? It is hard to beat the market consistently, but these three ETFs over the last 10-15 years have either stayed even with VOO or bypassed it. So, let’s look at three ETFs you may want to choose besides VOO.
VTI: Vanguard Total Market Index Fund
If you are looking for a simple ETF that tracks the market and gets a return similar to VOO, then VTI would be the ETF. The returns will be a bit similar, with the top 500 stocks in the ETF matching the same ones in the S&P 500. The addition of mid-cap and small-cap stocks allows for a bit more diversity in your portfolio. In the case of the small caps outperforming the large caps, you will have the added benefit of holding those all in one ETF.
The expense ratio is 0.03%. That means the fund costs about $3 a year on a $10,000 portfolio. That’s not too bad for a fund that is quite similar to VOO.
VUG: Vanguard Growth ETF
Looking for more growth in your portfolio? Look no further than Vanguard’s Growth ETF, VUG. VUG is a great ETF that holds over 200 growth stocks. It is an ETF that gives you great exposure to companies like Apple, Google, Amazon, Nvidia, and Tesla. It has averaged close to 15% over the last ten years and continues to be one of the top growth ETFs in your portfolio.
If you are looking for an ETF with a bit more risk than VOO but the potential for a higher return, you cannot go wrong with adding VUG to the mix. It is a stable fund holding mostly large-cap companies. As of writing this, VUG has beaten the S&P 500 by 166% in the last 20 years. That is impressive growth; many people would enjoy that in their portfolios.
VGT: Vanguard Information Technology Index Fund
Are you looking for a fund that has cutting-edge technology? The Vanguard Information Technology Index Fund could be that fund for you. It has companies that work in technology and AI-centered advances, like Apple, Microsoft, Nvidia, and Palantir Technologies. With the focus on technology companies, VGT has grown over 959% since its inception in 2004. From a growth perspective, VGT allows your portfolio to grow as technology advances, especially with AI.
The expense ratio is 0.10%, which is a bit higher than the other ETFs on this list, but with a greater risk of generating a larger return. The dividend yield of 0.57% should be able to cover that expense ratio. If you are looking for a simpler way to get into technology stocks without buying individual ones, VGT could be a safer option.
Picking the ETF For You
Not every ETF may be suitable for you. Creating portfolios can be challenging; going with VOO or even VTI may be simpler. If you are looking for more growth and a bit of extra risk, you can easily choose VUG as a growth ETF or VGT as a tech ETF. These will give the possibility of additional growth because you never know. Past returns do not guarantee future returns, but if you are bullish on these industries, choose an ETF more straightforwardly. If not, just use a simple market fund like VOO or VTI.
