Investing in exchange-traded funds (ETFs) has become increasingly popular due to their low-cost nature and ability to provide diverse exposure to various asset classes. For passive investors seeking long-term growth, Vanguard offers a range of ETF options worth considering. In this article, we will explore the five best Vanguard ETFs for passive investment in 2021, highlighting their key features, historical performance, and suitability for different investment goals. Whether you are looking for broad market exposure or specific sector bets, these Vanguard ETFs offer an opportunity to build a well-diversified, low-cost, and efficient investment portfolio.

Hi how’s it going everyone so if you have been doing some research into investing i’m sure you would have heard of vanguard etfs and i’m sure you would have heard that they are pretty good value with good returns and low fees however with more than 70 different etfs to choose from

It can be quite overwhelming in this video i’ll be going over five of the best vanguard etfs that you can invest in through your stock broker for a passive investment to gain massive profits if this type of content is useful to you be sure to like and subscribe to the

Channel so let’s get into it first off what exactly is an etf etf stands for exchange traded funds they’re basically a collection of investment products such as stocks or bonds that are packaged together into one basket they often track a particular index such as the s p 500 or specific industries

Like energy or consumer staples so when you buy an etf you are essentially buying many companies in one go this is good because it helps you diversify and spread out the risk vanguard is the world’s second largest fund manager with more than six trillion dollars under their management

It also has a very unique business model in that it is owned by its funds and its funds are owned by the shareholders that invest in the funds which essentially is you and me who purchase the funds they don’t have any outside investors that they need to make money for

So this model allows them to maximize profits for people that actually invest in their funds mainly by lowering the fees unlike many active fund managers which would charge more if the fund is doing well vanguard aims to reduce their fees when their fund is doing well in fact

Their fees are lower today than when the fund was first launched back in the 1970s now let’s take a look at the five best vanguard etfs in no particular order first up we have the vanguard s p 500 etf with the symbol voo voo tracks the s p 500 index in the u.s

Which is a weighted index of the top 500 companies in the u.s despite it being one of the most popular it is actually not one of vanguard’s oldest etfs and it was first launched in 2010 now let’s take a look at the fees associated with voo

Voo has an expense ratio of 0.03 percent which means that if you invest in 10 000 in the fund you are only charged three dollars fee now 0.03 percent is the lowest out of all of the vanguard funds and it is also one of the lowest out of

All the etfs in existence vol has a dividend yield of 1.88 percent so you do get some dividends that comes along with the particular etf now let’s take a look at the holdings of voo voo has a total of 510 different stocks and if we look at the sector

Distribution we can see that information technology has 27.5 percent followed by health care consumer discretionary communication services and financials its top holdings include microsoft apple and amazon the charter vo basically looks like the chart of the us s p 500 index and over the past five years voo has returned around 53.35 percent

Next up we have the vanguard growth etf with the symbol vug vug tracks the u.s large cap growth index and it gives exposure to the largest growth companies in the us including microsoft apple amazon and tesla this etf was launched in 2004 so it’s actually older than the vanguard s p 500 etf

So now let’s take a look at the fees and actually what’s in the etf the vanguard growth index fund etf bug has an expense ratio of 0.04 percent which makes it slightly higher than the vanguard s p 500 fund it also has a yield of 0.85 percent and because it’s uh so

Tech heavy it has less of a dividend compared to uh the s p 500 fund so let’s have a look at what uh it’s actually in this particular fund vug has a total of 270 stocks in the etf and most of it is concentrated in the technology sector with more than

A 40 percent of them from the technology sector and secondly we have consumer services financials and different industrials the largest holding in vug include microsoft apple and amazon so it’s pretty similar to the vanguard s p 500 etf let’s have a look at the chart for vug bug has performed extremely well over

The past five years with a return of more than 90 percent next up we have the vanguard high dividend yield etf with the symbol vym if you are a dividend investor vanguard has selected a long list of companies that have consistently provided dividends and this might be a good investment option for you

So let’s now take a look at its fees and what’s actually in the etf for vanguard high dividend yield etf it has an expense ratio of 0.06 percent which makes it slightly higher than the s p 500 fund but it has a yield of 3.75 percent

Which makes it a pretty good choice if you are after dividend investing so let’s have a look at the holdings in this particular fund bym has a total of 428 stocks and most of it is distributed in the financials and consumer goods and healthcare sector so this particular fund has less focus

On technology and communications its top holdings include johnson johnson procter gamble and jp morgan chase let’s have a look at the return of uim over the past five years so probably as expected bim doesn’t have as much return compared to the growth etf fund but still it has done reasonably well

And it has returned around 19 over the past five years and this is not even including dividends that you receive so when you are invested in this particular fund you are looking for more dividend payments next up we have the vanguard total world stock etf with the symbol vt if you own this

Etf you are basically holding a part of all of the major companies in the world and this includes the developed markets and also the emerging markets so let’s have a look at the fees and what’s actually in this etf the vanguard total world stock etf has an expense ratio of 0.08 percent

And it has a dividend yield of 2.17 percent so it gives off a decent amount of dividends so let’s have a look at uh what the holdings of vt is so for vt because it’s a total world etf we can have a look at the distribution of

Different regions so a majority of it is still in north america and followed by europe and emerging markets and the pacific let’s see how vt has done over the past five years so vt in the past five years it has grown by around 27 percent

Which is not as good as the uh s p 500 fund or the growth fund but it’s slightly better than the vanguard dividend fund last but not least we have the vanguard total bond market etf with the symbol b and d this etf gives you exposure to the investment grade u.s bond market

Bonds are essentially a loan from the government or corporations and they tend to be a more stable investment when compared to stocks which tend to be more volatile this is a good option if you’re looking for a more stable investment whether you’re close to retirement or looking to buy a house

In the near future and it also helps to diversify your portfolio to reduce your risk let’s now have a look at the fees and what’s actually in the etf finally we have the vanguard total bond market etf and it’s got an expense ratio of 0.03 percent

So it’s a very low expense ratio and it’s got a dividend yield of around 2.5 percent now let’s have a look at uh what holdings the uh bond etf has the total bond market etf has more than 9000 different bonds in it and the majority of the distribution is with treasury government and

Industrial bonds now let’s have a look at the charts for the bond market etf bnd over the past five years so over the past five years the bond has not actually grown that much so it has only grown by about eight percent but what we’re really after is all those

Dividend payments from the bond so it has been given out a fairly consistent amount of dividends so these are five of the best vanguard etfs that they currently have on offer and you should be able to find them in your favorite stock broker platform so be sure to check them out and i’ll

See you in the next video

This article highlights the top five Vanguard ETFs for passive investment in 2021. These ETFs offer diversification, low costs, and strong long-term performance. The Vanguard Total Stock Market ETF (VTI) provides exposure to the entire U.S. stock market, while the Vanguard Total International Stock ETF (VXUS) offers international equity exposure. The Vanguard Total Bond Market ETF (BND) is a popular choice for fixed-income exposure, and the Vanguard Real Estate ETF (VNQ) provides exposure to the real estate sector. Lastly, the Vanguard S&P 500 ETF (VOO) tracks the performance of the S&P 500 index. These ETFs are ideal for investors seeking a passive investing strategy with long-term growth potential and low fees.