Exchange traded funds (ETFs) are a great way to grow your wealth. They offer investors a treasure trove of choices, often with little to no fees. Here, I'll review some of the best ETF offerings from Vanguard and reveal my top pick for 2025.
Vanguard is one of the world's leading ETF administrators, offering over 80 ETFs with combined assets under management of more than $2.6 trillion. In other words, there are plenty of great Vanguard ETFs to choose from. Here are some of my favourites:
The Vanguard Growth ETF (NYSEMKT: VUG) tracks large-cap growth stocks like An apple, Microsofta Nvidia. As of this writing, it has produced a year-to-date return of 35% – making it one of Vanguard's best performing funds. Additionally, its expense ratio of 0.04% is one of the lowest around.
The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) also tracks large-cap growth stocks, about 300 in all, and is heavily weighted with “Magnificent Seven” stocks. As of this writing, it is Vanguard's best-performing stock ETF with a year-to-date return of 38%. Its expense ratio of 0.1% is not the lowest the company offers, but it is still low by industry standards.
The Vanguard Information Technology ETF (NYSEMKT:VGT) is a tech-focused ETF that boasts big charges of An apple, Microsoft, Nvidiaa Broadcomtogether with less jobs in Salesforce, Oracle, Higher Micro Devicesand many other technology stocks. This fund has produced an annualized return of 31%, and also has one of the best five-year compound annual growth rates (CAGRs) of any Vanguard ETF (22%). The fund's 0.1% expense ratio means you'll only pay $10 a year in fees for every $10,000 invested in the fund.
While all of these funds are great choices for most portfolios, there is another Vanguard fund that has jumped to the top of my wish list right now. At the moment, my top choice is the Vanguard Communications Services ETF (NYSE: VOX). The reason I like this ETF so much right now in due to the mix of companies that make up most of the ETF's holdings.
For example, the fund has very big jobs in Meta Platforms (23% of assets) a Alphabet (21%), together with significant jobs in Netflix (5%), Verizon Communications (4%), Comcast (4%), AT&T (4%), and Walt Disney (4%). He has too less, but still significant, positions in some of my favorite under-the-radar stocks like The Trade Desk (2%) a Roblox (2%).
In fact, another way to think of this ETF is as an internet sector ETF, rather than a communications or telecommunications ETF. That's because traditional telecom/broadband stocks like Verizon, AT&T, and Comcast are no longer the largest subsector in the fund. Increasingly, social media and digital advertising stocks, such as Meta Platforms, Alphabet, The Trade Desk, and roblox, is driving the overall performance of the fund.