
Vanguard has some of the best ETFs that are known for their low expense ratios. Lower costs allow you to keep more of the profits that your ETFs generate. Vanguard offers close to 100 ETFs that give investors access to major benchmarks, popular investment strategies, and sectors.
Buying Vanguard ETFs during dips can lead to meaningful profits in the long run, especially if you can hold onto your shares for many years. Another great thing about their ETFs is that you don’t have to know much about the stock market to generate positive returns. A fund manager oversees the positions to ensure they align with the ETF’s stated goals.
Investors who are looking for bargains and the potential for promising long-term returns may want to consider these three Vanguard ETFs.
Key Points
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Vanguard has some of the best ETFs with low expense ratios.
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Discover some of the top Vanguard ETFs to buy that can increase your wealth.
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Vanguard Growth Index Fund ETF (VUG)

The Vanguard Growth Index Fund ETF (NYSEARCA:VUG) has historically been an outperformer. It’s up by more than 170% over the past five years while the S&P 500 has rallied by 145% during the same stretch.
Despite the long-term gains, VUG looks promising due to its recent dip. The ETF is in the middle of a correction and has shed approximately 8% of its value year-to-date. VUG has 180 holdings and prioritizes large-cap stocks like the Magnificent Seven. Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Nvidia (NASDAQ:NVDA) are the top three holdings, and they make up more than one-third of the fund’s total assets.
VUG is a tech-heavy ETF. More than half of its capital is in the sector, and this high allocation is a common theme among ETFs that outperform the stock market.
Vanguard Utilities ETF (VPU)

Not every investor wants to deal with high market volatility, especially as they get closer to retirement. The Vanguard Utilities ETF (NYSEARCA:VPU) can give investors positive returns without the dramatic price movements of growth stocks in the tech sector. The fund has delivered respectable returns as well. It’s up by 24% over the past year and has delivered a 64% gain over the past five years.
The fund has a reasonable 0.09% expense ratio and places a strong emphasis on electric utilities. A focus on utility stocks has resulted in a lofty 30-day SEC yield of 2.85%. You can earn solid cash flow from this ETF while growing your money. Utilities are essential, and they are one of the last expenses consumers and businesses will cut. The fund also has a 20.2 P/E ratio which trails the S&P 500’s 28.2 P/E ratio.
Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF (NYSEARCA:VOO) tracks the S&P 500 and looks more attractive after a correction. The fund gives investors exposure to tech giants like Apple, Microsoft, and Nvidia while they are still recovering from corrections. A market rally can send these stocks soaring and reward VOO investors.
However, the S&P 500 isn’t just about tech stocks. Almost 70% of its total capital is allocated to sectors outside of tech. This diversification results in less volatility than the tech-heavy Nasdaq Composite.
VOO has a 0.03% expense ratio and a 1.21% 30-day SEC yield. Unsurprisingly, Apple, Microsoft, and Nvidia are the top three positions. However, they only make up about 19% of the fund’s total assets. That’s less concentration than VUG.
VOO is still down year-to-date, but its 146% rally over the past five years indicates the types of returns this fund can get when the stock market rebounds.
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