Top 10 Vanguard Index Funds to Invest 2021
Investing in different funds has gained momentum in the recent past and has pulled many investors to try out these investments. Numerous funds that you can invest in existing, among them being the Vanguard index fund.
The index funds pull together thousands of investors who pool their cash together to buy some shares in a wide portfolio. Different index funds come with a risk you may incur during the investment period, and the vanguard index fund is not exceptional but comes with some great advantages.
You can trust the Vanguard Index fund because it provides you as an investor with instant diversification, dulling the volatility impact and also spreads out the risk making the investment less bumpy.
How to Buy Vanguard Index Funds? Costs and Fees.
Vanguard index funds provide you with three ways of easily buying them; investing through your 401(k) provider, opening a brokerage account, or buying them directly from Vanguard. You only need to decide to choose the type of account you want to open and then decide on the fund shares you wish to invest in.
The Vanguard index fund typically requires you as an investor typically make an initial minimum investment ranging between $3000 and $10000. You will also be required to pay an annual expense ratio to maintain the fund based on the percentage of the funds you invested.
The Best 10 Vanguard Index Funds in 2020
Here are the best Vanguard index funds that you can invest in;
1) Vanguard 500 Index Fund Admiral Shares
2) Vanguard Balanced Index Fund
3) Vanguard Large-Cap Index Fund
4) Vanguard Small-Cap Index Fund
5) Vanguard Developed Markets Index Fund
6) Vanguard STAR Index Fund
7) Vanguard Utilities Index Fund
8) Vanguard Consumer Discretionary Index Fund
9) Vanguard Real Estate Index Fund
10) Vanguard Total Stock Market Index Fund
Vanguard 500 Index Fund Admiral Shares
The Vanguard 500 Index Fund Admiral Shares is rated as the cheapest Vanguard index fund that you can invest in. This Vanguard index fund falls among the best index funds to invest in as it exposes you to over 500 largest companies in the U.S.
The Vanguard 500 Index Fund Admiral Shares tracks the performance of the S&P 500 then invests in sectors such as energy, communication, and even health care. With The Vanguard 500 Index Fund Admiral Shares, you only incur an expense ratio of 0.04% with a 10-year return of 15.13%.
Vanguard Balanced Index Fund
Vanguard Balanced Index Fund mixes its investments between stocks and bonds. It makes use of a wide diversification approach, thus investing 60% of its assets on stocks and 40% on bonds.
If you want to invest in a Vanguard index fund that assures your appreciation of your invested capital, then the Vanguard Balanced Index Fund is the best for you. It requires a minimum investment of $3000 with an expense ratio of 0.07%.
Vanguard Large-Cap Index Fund
This Vanguard index fund exposes you to the larger U.S. stocks with a market capitalization of over 85%. If you are an enthusiast in finance, health care, oil, industrial, and gas fields, then the Vanguard Large-Cap Index Fund is the best vanguard for you.
Vanguard Large-Cap Index Fund only requires an expense ratio of 0.07% with an annual average return of 2.74% per 10 years. This fund only focuses on large companies like Johnson & Johnson, Visa, Hathaway, and many more.
Vanguard Small-Cap Index Fund
Every investor is fighting for space in large entities aiming at making high profits. But big entities are not the only ones that you can grow your dividends but small ones too. The smaller companies always aim to grow, and in case they grow, it may be good news to you as an investor.
Vanguard Small-Cap Index Fund targets smaller public companies, which makes it the best for you if you want to diversify your investments without involving large companies. As an investor, you need a minimum of $3000 with an expense ratio of 0.05% to invest in the Vanguard Small-Cap Index Fund.
Vanguard Developed Markets Index Fund
Vanguard Developed Markets Index Fund focuses on all levels of companies from a large, medium, and small. They also focus on the health care and technology field.
Vanguard Developed Markets Index Fund requires an expense ratio of 0.07% with a 10-year average return of 2.74%.
Vanguard STAR Index Fund
Vanguard STAR Index Fund is a unique fund in that it invests in other Vanguard index funds with expectations of growth and gaining income.
It balances its investments by allocating its 70% assets on eight stock funds and 30% on the short-term bond fund. With a minimum investment of $1000, you can invest in the Vanguard STAR Index Fund. Vanguard STAR Index Fund also has a 10-year return of 10.07%.
If you need a wide exposure to domestic and international stock funds, then Vanguard STAR Index Fund is the best Vanguard index fund to invest in.
Vanguard Utilities Index Fund
This vanguard fund focuses on independent stocks in producers of electricity, distributors of electric energy, water, and gas. You can trust to invest in the Vanguard Utilities Index Fund since it is traditionally known to be more resistant to market fluctuations.
Vanguard Utilities Index Fund makes the best Vanguard fund you can invest in as it does not have a limit that you need to invest; you only start with what you have. Vanguard Utilities Index Fund also has an expense ratio of 0.10% with a 10-year return of 10.90%.
This Vanguard fund always tracks the performance of different utility stock benchmark indexes and combines with the use of an investment approach, making it the best fund for you.
Vanguard Consumer Discretionary Index Fund
This Vanguard index fund comes with a 10-year return of 19.43% and only requires an expense ratio of 0.10%. The good news is that the Vanguard Consumer Discretionary Index Fund does not set a minimum limit of your investment; you only set it yourself.
This fund invests in companies like Amazon, McDonald’s, Nike, and many more. It has a narrow focus on the stock market, making it the best supplement for your diversified investment portfolio.
Vanguard Real Estate Index Fund
As an owner of stocks and bonds, to diversify your portfolio, you need to own real estate. Vanguard Real Estate Index Fund aims at generating a high income with an assurance of capital growth. It makes use of a benchmark index and is passively managed using an indexing approach.
The good news for you as an investor is that Vanguard Real Estate Index Fund does not set a minimum investment but offers a 10-year average return of 9.26% but with an expense ratio of 0.12%.
Vanguard Total Stock Market Index Fund
Vanguard Total Stock Market Index Fund requires a minimum of $3000 investment with an expense ratio of 0.04%. This fund, in return, also assures you of a 10-year average return of 14.49%.
With Vanguard Total Stock Market Index Fund, you are assured of exposure to the equity market in the entire U.S. Vanguard Total Stock Market Index Fund does not exclude small, mid, or large-cap growth and value stocks; it encompasses both. If you need the lowest vanguard fund that will expose you to the equity market, then trust Vanguard Total Stock Market Index Fund.
These are the best Vanguard index funds on the fund investment market that you can trust. They are still the cheapest index funds you can invest in, but they still offer you as many benefits as the high-end index funds could do. With the Vanguard index funds, you are assured of high diversification and lower investment risk. Although the Vanguard index funds are the cheapest index funds to invest in, they are the largest funds in the market with the largest dividend. The Vanguard Index Funds are the best.