Which is Vanguard's best performing fund?
Vanguard High-Yield Corporate Fund (VWEAX)
Morningstar gives many of Vanguard's funds a five-star rating—the highest rating possible from Morningstar's rating system. The Vanguard Wellesley Income Admira allocates over half its assets to a broad mix of bonds. The Vanguard Tax-Managed Balanced Fund Admiral Shares allocates nearly half of its assets in stocks.
| Dividend ETF | Assets under management | Expense ratio |
|---|---|---|
| Vanguard Dividend Appreciation ETF (ticker: VIG) | $79 billion | 0.06% |
| Vanguard High Dividend Yield Index ETF (VYM) | $55 billion | 0.06% |
| Vanguard Real Estate ETF (VNQ) | $34 billion | 0.12% |
| iShares International Select Dividend ETF (IDV) | $4.2 billion | 0.51% |
| Vanguard Fund | Expense Ratio |
|---|---|
| Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) | 0.04% |
| Vanguard Explorer Fund Investor Shares (VEXPX) | 0.45% |
| Vanguard Long-Term Treasury Index Fund Admiral Shares (VLGSX) | 0.07% |
| Vanguard Mid Cap Growth Fund (VMGRX) | 0.37% |
The Vanguard Health Care ETF (VHT, $245.85) is tops among all bear market ETFs period, and it's certainly one of the safest Vanguard funds to put to use in a bear market.
As of September 2023, the Vanguard PrimeCap Fund provided the highest one-year return rate. The Vanguard Selected Value Fund ranked second having a one-year return rate of 34.05 percent.
| Average annual returns as of 03/31/2024 1 | ||
|---|---|---|
| Sort table ascending by Fund name | Sort table descending by Symbol | Sort table descending by 10 yr |
| Diversified Equity Fund | VDEQX | 11.97% |
| Dividend Appreciation Index Fund Admiral Shares | VDADX | 11.47% |
| Dividend Growth Fund | VDIGX | 11.20% |
While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.
So, what's the magic number? There isn't a strict rule, but between five and 10 funds is usually a good idea. That lets you allocate money to different types of funds and markets without doubling up too much. It's also a manageable number to monitor and won't cost you too much in trading fees.
| Fund (ticker) | 5-year annual returns | Expense ratio |
|---|---|---|
| Fidelity ZERO Large Cap Index (FNILX) | 14.6% | 0% |
| Vanguard S&P 500 ETF (VOO) | 14.5% | 0.03% |
| SPDR S&P 500 ETF Trust (SPY) | 14.5% | 0.095% |
| iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
What Vanguard fund does Suze Orman recommend?
Look for funds that have expense ratios below 1 percent. If you can handle the $3,000 minimum initial investment, I like the low-cost Vanguard Total Stock Market Index Fund and the Vanguard Total International Stock Index Fund (vanguard.com; 877-662-7447).
Vanguard is also widely known for its in-house selection of low-cost funds, as it runs a number of its own indexes. On the other hand, Fidelity offers in-depth investment tools that are great for veteran investors looking for the upper hand.
Vanguard Brokerage doesn't charge additional fees for a purchase, a sale, or an exchange of any load mutual fund offered through our program. You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions).
- Relatively high minimum investment requirements for many fund options.
- Higher-than-average per-contract options fee.
- Slow process to open an account.
- No trading platform for active traders.
- No fractional shares of stocks or ETFs.
When the market cratered, investors withdrew $16.4 billion from Vanguard's index mutual funds. What accounts for remaining index mutual fund outflows? Johnson says it could be clients pulling out money because they're retiring, or because they're negatively affected by the pandemic.
The securities that underlie the funds are held by a custodian, not by Vanguard. Vanguard is paid by the funds to provide administration and other services. If Vanguard ever did go bankrupt, the funds would not be affected and would simply hire another firm to provide these services.
Vanguard Wellington is the oldest balanced mutual fund out there, originally launched in 1929. This actively managed fund tends to allocate up to 70% of its portfolio to stocks and the remainder to bonds. Fund managers focus on high-quality, large-cap companies that have a dependable history of dividend growth.
Vanguard's low-cost model and large fund selection make the broker a good choice for long-term investors, but the firm lacks the kind of robust trading platform active traders require.
Vanguard 500 Index Admiral Fund (VFIAX)
Besides, with more assets than many of the other smaller S&P 500 index funds out there combined, it's a dominant offering. As with the Schwab fund, if Vanguard funds is your go-to platform for mutual funds then you can have confidence in VFIAX as a long-term holding.
Purchase & redemption fees
Very few Vanguard funds charge fees when you buy and sell shares. The fees are designed to help those funds cover higher transaction costs and protect long-term investors by discouraging short-term, speculative trading. Fees vary from 0.25% to 1.00% of the amount of the transaction.
What is the average account balance at Vanguard?
The average 401(k) balance at Vanguard was $112,572 in 2022. Your age, income and job tenure may affect the size of your 401(k) balance is.
Vanguard is primarily known for its vast selection of low-cost index funds. According to a survey, plan sponsors gave Vanguard top marks in the areas of investment performance, website and online services, fund transaction fees, problem resolution, investment options, and fee transparency.
The truth is that either broker is suitable for a long-term investor, depending on one's needs. Vanguard could be a better choice for passive investors who want index funds; Charles Schwab offers more features that appeal to active investors. Ultimately, the better brokerage is dependent on how you invest.
The answer depends on you and your investment goals. There's no reason you can't have accounts with both Fidelity and Vanguard (among others). You'll have two (or more) sets of statements to review, multiple phone numbers to remember, several websites to navigate and hundreds of funds to understand and monitor.
Vanguard Cash Deposit
May be appropriate for money you want to keep accessible for trading. Offers FDIC insurance for up to $1.25 million for individual accounts and $2.5 million for joint accounts.* Gives you another option for your settlement fund in addition to the Vanguard Federal Money Market Fund.
