Vanguard remains one of the top exchange traded fund (ETF) providers in the market. Founded in 1975 by John Bogle, who is ultimately credited with founding the exchange traded fund (ETF). In addition to providing a range of other products and services aimed at institutional investors, one has to marvel at the fundamental change the ETF brought about for a whole generation of individual retail investors.
Vanguard Total International Stock ETF (VXUS) holds over 8,000 global stocks outside the U.S. with a 0.05% expense ratio and 2.8% dividend yield.
Vanguard FTSE Developed Markets ETF (VEA) focuses on developed nations with a 0.03% expense ratio and 2.8% yield.
Vanguard S&P 500 ETF (VOO) tracks the top 500 U.S. companies though the top 10 now account for 40% of index earnings.
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Given the company’s historical track record, as well as its impressive portfolio of offerings investors can choose from, those considering adding some passive ETF exposure to their portfolios may want to select from some of the world-class offerings that can be found on Vanguard’s platform.
In this current investing environment, I have a short list of around a dozen top Vanguard ETFs I think long-term investors may want to consider. Here are the three I’d be looking at adding in December for those looking to put fresh capital to work.
I’m going to start with the Vanguard Total International Stock ETF (VXUS) as my first pick on this list, for one key reason. I think U.S. stocks are generally overvalued, and it’s simply an intriguing fact to consider that many of the top international markets provide companies that are growing at an impressive rate, but trade at a significant relative discount. For those value-conscious investors out there, finding the best ETFs that provide exposure to these trends at the lowest possible cost is a great way to go.
With an expense ratio of 0.05% and a dividend yield of 2.8% (compared to a yield just above 1% for similar U.S. ETFs), there’s plenty to like about this ETF. Additionally, investors won’t be exposed to some of the notable concentration risks I’m going to discuss below in other markets such as the U.S..
With a very diversified portfolio covering more than 8,000 global stocks around the world (all of which are based outside of the U.S.), this is an ETF I think could have relative growth, value and dividend outperformance that’s worth considering right now.
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