5 Best Vanguard ETFs Every Investor Needs to Own

In this video, I’ll show you how to use Vanguard exchange traded funds in the core-satellite strategy to diversify your investments at the lowest price possible. I’ll reveal why I use Vanguard funds and show you why ETFs beat mutual funds any day of the week. Then I’ll share five of the best Vanguard ETFs to buy for your portfolio.

The core-satellite strategy is a great way to get instant diversification across an ETF portfolio while still keeping the opportunity for higher returns. The only question is, which ETFs to buy?

I like the Vanguard funds because there are no fees to invest, they’re easy to buy and charge some of the lowest expense ratios in the industry. In fact, I’ll share a chart that shows you can save as much as $30,000 by investing in Vanguard funds instead of other exchange traded funds.

Vanguard ETFs are also much better versus mutual funds because they don’t include the load funds that come with fund salespeople. It’s the same concept but much, much cheaper. You’ll also save on taxes by investing in ETFs vs mutual funds.

In those five top Vanguard ETFs I’ll share below, I’ll show you why I like each one and why it’s a perfect fit for a portfolio. I’ll share the expense ration for each and what part of the market it covers.

Vanguard Dividend Appreciation ETF (VIG)
Vanguard Long-Term Corporate Bond ETF (VCLT)
Vanguard Real Estate Index ETF (VNQ)
Vanguard Financials ETF (VFH)
Vanguard Health Care ETF (VHT)

My Investing Recommendations 📈

Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

[joeybowling]

1-VIG- Dividend appreciation fund
2-VCLT- Bond Fund
3-VNQ- Real estate fund
4-VFH- Banking fund
5-VHT- Healthcare fund

[GriffinMilks]

The core-Satellite strategy is the best for most investors for long-term portfolio growth! Great information Joseph, and it was great to team up with you on this one 😀

[JM-oilt]

Hey Joseph Houge, Bowtie Citizen here, Thank you for putting this channel together!
Insight, Education and fun all in the same place!

[LuigiFan]

I'd rather go with VTI at 60% & Vxus 40% over the 5 fund portfolio. Both etfs cover the entire US and International markets and give exposure to small cap companies and all the REITS VNQ offers as well. Set it and forget it. Thank me later 👌🏾

[smartmoneyadvice]

Thanks for the video! VT, VGT, VHT, VWO, and VPL - 80% of my portfolio. Added VPL because the other funds don’t have a lot of exposure to Asia. Asia is sorely under concentrated in most Americans portfolios IMO

[trepan]

Vanguard will be getting my $ once I get tired of stock picking. I'm saving this video for when that day comes.

[carolcarol]

Thanks, i will check these out but i really like VTI and VOO. They have served me well for only 6 months now.

[tonioyendis]

I've got VT, VIG, VYM. Thanks to Jack Bogle for inventing the ETF so that us regular everyday people can invest with minimum fees. He was a Good Man and may he Rest In Peace.

[RobFrank]

My personal picks so far. VBK, VXF, VONG, VOT

[jasonx]

For some reason I trust this guy Joseph more than the other YouTube investors. Could it be the bow tie 🤔 the world may never know

[mbabcock]

Question: Does it make sense to buy ETFs by the amount of companies in a sector as a base and then expand from there?
Using Professor Aswath Damodaran's data on the Stern NYU site, where he has total world companies broken down by sector, should a person simply look at the YTD Daily Return performance and fraction into a sector that is currently underperforming?
As an example, the Energy sector (VDE) is up 47% YTD so perhaps wait until this sector drops back after the current economic situation calms down but load up on sectors like VGT (IT), VOX (Consumer Svcs) and VCR (Consumer Disc) which are down 14.53%, 16.77% and 11.58% respectively.

Applying Professor Aswath Damodaran's total world company in a sector data to Vanguards' sector ETFs:

Primary Sector/ETF/Percent
Communication Services/VOX/7.46%
Consumer Discretionary/VCR/11.98%
Consumer Staples/VDC/7.29%
Energy/VDE/4.86%
Financials/VFH/14.13%
Health Care/VHT/10.26%
Industrials/VIS/11.89%
Information Technology/VGT/19.22%
Materials/VAW/6.33%
Real Estate/VNQ/3.55%
Utilities/VPU/3.02%

[Dave-ywwc]

I agree with the end part about the healthcare sector. I am especially optimistic about Merck, Abbvie, and Bristol Myer and have been picking up a lot of shares in these companies.

[snsQ]

You should include VUG ETF its the best of all ETF's.

[cryptoenthusiast]

Great video. I've had VNQ since you recommended it in a previous video. Will be adding these as well, starting with VCLT with its monthly payout!

[RB-jeyj]

This what I have VGT, VOO, XSVM and VXUS!

[wildflyingdove]

In this video you cite VHT as fave Health ETF but elsewhere you highlight BLU - which would you rate higher? Similarly here you you highlight VCLT for bonds (corporate) but elsewhere AGG and HYG - which do you prefer? Thanks!

[goldenmanuever]

Jack Bogle was a great guy. Along with Dalio, one of my all time favorites.

[akin]

Vanguard funds have serious competition with Schwab core ETFs, Ishares ETFs, and Fidelity sector ETFs.

Spider ETFs are best for day/option traders. Invesco ETFs for certain specialty funds.

[michaelwescott]

All these also have options, so you can sell calls against them for a few percent increase, just make sure you own them before the ex-dividend date.

[RobCLynch]

I own 6 tracker funds, but they're not ETFs. I like this because I'm less tempted to sell them due to delays in transaction actions. But one of my 6 funds is vanguard global small cap fund and it is 31% up on the year.