6 Vanguard ETFs to Buy in 2022 for Long-Term Wealth
Vanguard has some of the most popular ETFs in existence and in this article, I'm going through six top high-growth Vanguard ETFs that you can invest in today. There are currently 76 different ones to choose from.
But these are my favorite six that invest in higher risk, higher reward companies. Vanguard is one of the top ETF providers, but they're super low expense ratios. So that's why I personally have a significant portion of my money with them.
Vanguard ETF list
First Company
Number one on the list is the Vanguard Growth ETF ($VUG). Right now one share of $VUG is trading at $250.78, which is basically the 52-week low and the 52-week high is $325.66. So yeah, obviously a lot of these high-growth ETFs as well as stocks are getting pummeled right now in the market, regardless of $VUG as a four on the risk potential scale, with one being less risk, less reward, and five being more risk, more reward.
So in other recent drops have been a little bit scary. But if you look at the hypothetical growth of $10,000, in the last 10 years, you can see that you know, it's grown a lot actually went as high as $50,000, which means that your money would have 5x in about nine or 10 years. But you know what the recent drops have gone down to under $40,000.
So still about a 4x return in the last 10 years. So for that 266 different companies, and it's with a median market cap of $350.2 billion.
The average price-earnings ratio is 33. The average price-to-book ratio is 9.7. And the return on equity is 29.1%. Here are the different sectors in this ETF.
It is pretty heavy and consumer discretionary. It's big in healthcare, and industrials and biggest in technology at almost 50%. Here are the top 10 largest holdings, you can see they have, you know, Apple Microsoft alphabet, and these top 10 Holdings make up 52% of the total net assets. A really awesome part about this ETF is that the expense ratio is only 0.04%.
What are the best Vanguard ETFs to invest in?
That's super small. And to put into perspective, the fees on $10,000 invested over 10 years would be only $95. The Vanguard growth index fund ETF tracks stocks in the CRSP us large-cap growth index, so it tends to focus on larger, more durable companies with bullish trajectories think Apple, Microsoft, Amazon, meta alphabet, Tesla, and many more well-established businesses out there.
The growth aspect of this ETF couldn't be clearer. Over the past five years, the fund's price has appreciated by well over 100% meaning anyone who invested in this ETF five years ago has more than doubled their investment by now even more. So if you had invested 10 years ago, you received a great profit.
I personally think that this ETF is a solid pick because of its emphasis on tech companies. So if you want high growth, but don't want to pick individual companies, this is a really good choice. Tech right now is of course down significantly in the last few months. But long-term-wise, I think a lot of these companies have a ton of room to grow.
Some of the big holdings in this fund are commonly found in many of the largest and most successful ETFs anyways, but what makes $VUG special is its massive size, its low fees, and liquidity, which gives investors more flexibility to get in and out of their investment.
Larger-size ETFs are also generally more stable, which explains why $VUG has been such a consistent powerhouse of investments for pretty much the entirety of its run in the market. If you're looking for a reliable, secure, but still exciting way to grow your money then I think VG should definitely be on your watch list. It's definitely one of the most popular high-growth Vanguard ETFs out there.
Second Company
The second Company on the list is the Vanguard Russell 2000 ETF ($VTWO). Right now one share of $VTWO is trading at $75.58, which is basically the 52-week low and the 52-week high is $97.99. This would be a growth of $10,000 in the last 10 years. So if you'd started with $10,000 from 10 years ago, that would have grown to as much as over $30,000 at its peak.
Since then it has dropped a good amount. This is rated a five on the risk potential scale, so that means more risk and more reward. It's considered a small blend portfolio and this font has 2032 stocks with a median market cap of $2.9 billion. the price-to-earnings ratio is 14.3 with a price-to-book ratio of 2.2, and a return on equity of 6.9%.
The fund total on the assets is $7.6 billion. And looking at the different sectors. You can see that this one's heavy in consumer discretionary at 13.6%. Financials at 15.9% healthcare at 16.1% industrials at 15.4% and technology at 12.3%.
There are the 10 largest holdings as of right now, which make up just 3.5% of total net assets. Looking at the fees you can see that the expense ratio for this fund is 0.1% which means that your fees on a $10,000 investment over 10 years is $236 which is a bit more than the proof.
Here's the ETF we talked about making this one of the higher ones on this list. So $VTWO tracks small-cap companies from the Russell 2000 index, which may interest some of the more risk-tolerant viewers or investors here.
Higher returns come with greater risk and small-cap companies can generate massive profits for shareholders. However, you know, the larger-cap companies have performed better than small-cap companies over the last decade, but on a case-by-case basis, you know, small-cap companies are higher risk, higher reward.
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Another interesting thing to note about $VTWO is the fact that the fund's largest sector is healthcare, followed by financials and then tech. However, this makes sense because there are many medical companies out there that aren't too big. And it seems like $VTWO aims to target those high-risk high-reward businesses.
What specifically makes this fund appealing to me is the fact that it is passively managed, meaning that it simply follows its respective market index. passive management also implies lower costs, more transparency, and overall fewer complications. And these types of funds are typically solid long-term investments.
So, If you guys are willing to incur greater risk by buying into small-cap companies while still placing your money in decent long-term investments. Then $VTWO might be the perfect Vanguard ETF for you as part of an overall portfolio, it can give you more diversity in your holding, because I know that most people like to hold large cap stuff.
Third company
Number three on the list is the Vanguard S&P 500 ETF ($VOO). This is a really popular ETF that I'm personally really heavily invested in it and also one of the most popular ETFs that people like talking about. So right now one share of $VOO is trading at $381.91. That's only about $9 higher than the 52-week low and it's significantly lower than the 52-week high of $439.25.
The performance over the last 10 years that $10,000 would have turned into over $40,000. So yeah, historically, it's performed very, very well. It's ranked #4 on the risk potential scale and is characterized as a large blend fund, this ETF has fathered six different stocks, and with a median market cap of $207.4 billion dollars.
The average price-to-earnings ratio is 22.1. The average price-to-book ratio is 4.3. The return on equity of this fund is 22.3%. And the fund's total assets are $841.7 billion.
Its largest sector is going to be communication services at 9.4%. consumer discretionary at 12%. Financials at 11%. Healthcare at 13.6%. and Information Technology at 28%.
Here are the 10 largest holdings, it's very, very similar to $VUG and these 10 largest holdings make up 30.4% of total net assets. The most awesome part about this fund is that the expense ratio is just 0.03% making it extremely low and affordable to invest in or use this fund. This means that on $10,000 invested over 10 years, the fees of $VOO would come out at $71 in total.
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So the Vanguard s&p 500 ETF tracks the s&p 500 index, which basically means that the fund tracks the broader market as a whole because we can be very confident that the market will continue rising in value over the next 50 years or longer. $VOO seems like a solid investment to hold on to forever. And like I mentioned earlier, it's actually the ETF that I have the most of in my own personal investing journey.
And of course, the index is highly diversified within sectors means that we don't have to worry too much about the volatility and unpredictability of certain sectors taking our money. What I really love about Vo is that if there's ever a slump in the markets, the price history of this fund shows that it will be very good at recovering from the slumps.
The economy is also great at recovering in particular taking a look at the downward trend as a result of the pandemic as well as the recovery afterward really underscores the durability of $VOO as one of the best ones Ultraman investments on the market.
I definitely think $VOO is a worthy consideration for any investor who wants to store their money in a secure place and make money off it for a long time. It's extremely passive has a very low expense ratio and is probably the most recommended ETF in the world. That's why this should definitely be on your watch list.
Fourth company
Number four is the Vanguard Total Stock Market ETF ($VTI). Right now, one share of $VTI is trading at $207.88, which is pretty much the 52-week low and the 52. week high is $242.92.
The performance in the last 10 years, it's grown exceptionally well. They'd started out with $10,000 from 10 years ago, it was grown to about $40,000 at the peak, they are right now that $10,000 With a turn into about $34,000.
The company's rating is #4 on the risk potential scale and is characterized as a large blend portfolio fund. This ETF has 4224 different stocks with a median market cap of $133.8 billion, the average price-to-earnings ratio is 21.2. The price-to-book ratio is 3.9. And the return on equity is 19.6%.
The total net assets in this fund are $1.3 trillion. If we talk about sector diversification we are heavy in consumer discretionary at 15.3%. Financials at 11.3%. Healthcare at 12.9% industrials at 12.6%.
And of course technology at 27.6%. Here are the 10 largest holdings which make up 25.6% of total net assets and taking a look at the fees insert the expense ratio of $VTI is 0.03%.
This is amazing, meaning that fees on $10,000 invested over 10 years would just come out to be $71. So, $VTI tracks the performance of the CRSP us total market index. This fund is perfect for investors who want to invest in the entire US market because the fund contains a diverse collection of investable US Securities from small-cap stocks to mid to large-cap holdings.
While some of its largest holdings include obvious pics like Apple, Microsoft, and Tesla, ETF couldn't courage greater risk because of its incorporation of 4000. For other companies including smaller, more volatile businesses, what I like most about $VTI is that it really owns up to the mentality of buying as much of the market as possible.
Whereas a Vanguard ETF like $VOO focuses more on growth and tech $VTI emphasizes how buying the haystack is much easier than finding the needle in the haystack without giving up too much profit or growth. I think this ETF appears to be a solid investment to hold for a long time because of its emphasis on the broader market and its value. $VTI is a really popular Vanguard ETF that I definitely recommend having on your watch list.
Fifth company
Number five on the list is the Vanguard Total International Stock ETF ($VXUS). Right now one share of $VXUS is trading at $55.02, which is the 52-week low and the 52-week high is $67.48. At first glance, it's pretty obvious that this international ETF has not grown as much as know our US large-cap ETFs.
And it started with $10,000 from 10 years ago, that grown to about $20,000 At the peak which is now about $16.5000, so about a 60% return on your money over 10 years. It is rated 5 on the risk potential scale.
And looking at the region allocation you can see that 25.2% is in the emerging markets. 39.5% is in Europe 26.8% is going to be Pacific 0.5% in the Middle East and a percent in North America there are a total of 7896 different companies in this ETF with a median market cap of $32.7 billion.
The average price-to-earnings ratio is 12.9. The average price-to-book ratio is 1.7. And the average return on equity is 12.4%. The fund's total net assets are at 380 $6.7 billion.
And if you look at the 10 largest holdings, you can see that number one on the list is the Taiwan semiconductor manufacturing code followed by Nestle and Samsung all companies that you guys have heard of, but are not based in the United States.
These 10 largest holdings make up 9.2% of total net assets. In the market allocation in terms of the country, we can see that Japan leads the list, followed by the UK and Canada, and then China. If we look at the fees.
The expense ratio of this fund is 0.07%. It means that fees on $10,000 invested over 10 years would give you a fee of $165 total. So in the summary $VXUS tracks the performance of the FTSE global all cap ex-US index.
This basically means that $VXUS exposes investors to the international stock. There are tons of super great companies that you can invest in that are outside the US being more exposed to countries that you might not be familiar with does carry some intrinsic risk. This one is really well suited for higher-risk investors. that don't want to only invest in the US economy.
However, one can also look at this in a more positive light by arguing that international markets can counteract a bearish run for the US market making this fund an appealing choice for those who want to capitalize on the growth of the global market as a whole. For the investors that want to have a piece of the massive pie that is the global stock market, I personally feel like it would be wise to invest both in $VXUS and $VTI.
Which as we talked about is the fund that tracks the US stock market as a whole that way you can really maximize your exposure to the US market, which I really do believe in in the long term as well as the international markets that also have a lot of potentials to grow. Yes, definitely has not grown as much in the last 10 years as some of the US ETFs Yeah, $VXUS can be a really great way to actually start diversifying your portfolio and introducing international companies.
Sixth company
Number six on the list is the Vanguard High Dividend Yield ETF ($VYM) and this is not a traditional high-growth ETF in terms of the actual price of the ETF but if you take into account the high dividend yield that this one pays out, I do think it is a very great choice for a lot of people who are reading this article. So right now one share of $VYM is trading at $109.29 with a 52-week low of $102.28 and a 52-week high of $114.97.
A very little price movement for this ETF which is pretty typical for these types of high dividend companies. To have the dividend yield for this one is 2.77% which is significantly higher than the other ETFs we talked about in this article. This stock is rated #4 on the risk potential scale and is characterized as a large value portfolio.
We have totaled 445 different stocks in this fund to a medium market cap of $145.6 billion an average price-earnings ratio of 15.4 prices to book ratio of 2.6 an average return equity of 15.2% the fund's total net assets come in at $57.4 billion. If we look at the different sectors, we can see that this one's heavy and consumer discretionary consumer staples at 2.4%.
The energy is at 8.8%. Financials at 20.9% healthcare at 13.9% industrials at 10.2%. This one is pretty well spread out compared to some of the other ETFs we talked about here are the 10 largest holdings in $VYM, and they make up 22.3% of total net assets come over here to be fees, the expense ratio of $VYM is at 0.06%.
Which is like before is not the lowest but also not the highest. $10,000 invested over 10 years but give you total fees of $142 which is significantly lower than the category average. So $VYM is a fund that tracks the FTSE high dividend yield index. So they're basically monitoring the performance of companies that pay up high dividends to their shareholders.
This is already a solid pool investment because typically companies that can afford to pay out high dividends to their investors already have a large pool of cash as well as plenty of assets to reinvest in themselves. This is why the $VYM is a good option for investors seeking low volatility and sustainable returns.
So, top stock holdings include JP Morgan Chase, Johnson, Johnson, and Home Depot. I personally feel pretty confident in $VYM's ability to generate favorable returns in a steady manner. It's one of the biggest dividend assets on the markets and I think it is a great way for investors to expose themselves to durable blue chip companies that can afford to pay out hefty dividends to their shareholders.
So instead of holding individual high dividend companies and risk some of them falling Valley or cutting their dividend payouts, you can invest in a diverse group of well-paying companies to mitigate risks personally, just like the International ETF we talked about as well as this ETF I think you should not be a majority of your portfolio.
Rather, if you believe in the US economy as a whole you should invest in things like VOO, VTI, and VUG and supplement your portfolio with ETFs like this, it's a great way to hold these high dividend companies without having to you know individually track them. These are six top high-growth Vanguard ETFs that you guys can invest in today.
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