What is Vanguard's best performing ETF?
The largest Vanguard ETF is the Vanguard 500 Index Fund VOO with $404.97B in assets. In the last trailing year, the best-performing Vanguard ETF was MGK at 42.45%. The most recent ETF launched in the Vanguard space was the Vanguard Intermediate-Term Tax-Exempt Bond ETF VTEI on 01/30/24.
These are VanEck Vectors Semiconductor ETF SMH, Invesco NASDAQ 100 ETF QQQM, Communication Services Select Sector SPDR Fund XLC, Vanguard Mega Cap Growth ETF MGK, and Vanguard Consumer Discretionary ETF VCR. These funds are likely to continue outperforming should the existing trends prevail.
What were the top-performing funds? Top of the list by some margin was the JP Morgan Emerging Europe, Middle East & Africa investment trust, with a one-year return of almost 50%. The Amundi Semiconductor ETF comfortably took second place with a one-year return of 43%, well ahead of the iShares Poland ETF at 35%.
iShares Semiconductor ETF (NASDAQ:SOXX), Technology Select Sector SPDR Fund (NYSE:XLK), VanEck Semiconductor ETF (NASDAQ:SMH), and Invesco Semiconductors ETF (NYSE:PSI) are some top performing ETFs of the last ten years.
ETFs offer advantages over stocks in two situations. First, when the return from stocks in the sector has a narrow dispersion around the mean, an ETF might be the best choice. Second, if you are unable to gain an advantage through knowledge of the company, an ETF is your best choice.
Despite a sluggish start to the year, a record number of product launches and a red-hot November have put 2023 back on pace to be a solid year for ETFs. Total flows are on track to hit $500 billion — a far cry from the peak $900 billion in 2021 but, by many measures, still an impressive haul.
Five large cap mutual funds that gave the highest return in the past 10 years are Nippon India Large Cap Fund which gave 17.09% returns, followed by Mirae Asset Large Cap Fund with 16.99% return. The other three are ICICI Prudential Bluechip Fund, SBI Bluechip Fund and HDFC Top 100 Fund.
As of September 2023, the Vanguard PrimeCap Fund provided the highest one-year return rate.
The Vanguard S&P 500 ETF offers investors a great way to get exposure to a key broad market benchmark, and it does so at a notably low cost. Another plus: The fund's dividend yield is a proxy for the overall stock market's yield.
Key Takeaways. Vanguard is a large investment advisor offering mutual funds and ETFs, many of which pay dividends. Most of Vanguard's ETF products pay monthly or quarterly dividends. Expense ratios are the fees investors pay for investing in a fund; the lower the better.
Are ETFs good for older investors?
ETF benefits, including simplicity, low expenses and tax efficiency, make exchange-traded funds a worthwhile investment for retirement. Popular types of ETFs for retirement include dividend ETFs, fixed-income ETFs and real estate ETFs.
The single biggest risk in ETFs is market risk.
“ETFs are effectively a way to invest and have market exposure,” says John DeYonker, Titan head of investor relations. “And they are incredibly cheap.” However, there are disadvantages of ETFs. They come with fees, can stray from the value of their underlying asset, and (like any investment) come with risks.
Underlying Fluctuations and Risks
The potential for large swings will mainly depend on the scope of the fund. An ETF that tracks a broad market index such as the S&P 500 is likely to be less volatile than an ETF that tracks a specific industry or sector, such as an oil services ETF.
You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.
SPDR S&P 500 ETF (SPY)
The Standard and Poor's 500 Index (S&P 500) has long been seen as the bellwether index for the US stock market. S&P 500 index funds have been a favorite retirement holding for decades. SPY just repackages this old standby, with lower expenses and less paperwork than traditional index funds.
Generally speaking, the best time to trade ETFs is closer to the middle of the trading day rather than the beginning or end.
The largest Vanguard ETF is the Vanguard 500 Index Fund VOO with $404.97B in assets. In the last trailing year, the best-performing Vanguard ETF was MGK at 42.45%. The most recent ETF launched in the Vanguard space was the Vanguard Intermediate-Term Tax-Exempt Bond ETF VTEI on 01/30/24.
The top ETF of 2023 is iShares Expanded Tech Software Sector ETF (IGV), with a YTD return of 355.22%. Technology ETFs outperformed their peers this year, driven by the widespread adoption of AI and expectations of a soft landing in the economy in 2024.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
Should I invest in VOO or VUG?
VOO - Performance Comparison. In the year-to-date period, VUG achieves a 5.81% return, which is significantly higher than VOO's 4.62% return. Over the past 10 years, VUG has outperformed VOO with an annualized return of 14.52%, while VOO has yielded a comparatively lower 12.57% annualized return.
Bottom line. Vanguard is one of the leaders in low-cost index investing, so if you're looking to invest using index funds – a very smart way to go – then it's worthwhile to check out their selection of ETFs. You'll get a choice of funds without the high expenses, helping you keep more of your money in your own pocket.
While it depends on your financial situation and existing portfolio, Vanguard ETFs could make sound investments for most individuals, especially if you plan to invest over a long period. You can use our investment calculator to determine how much your investment could grow.
Over the past 10 years, VGT has outperformed VOO with an annualized return of 19.88%, while VOO has yielded a comparatively lower 12.57% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Vanguard S&P 500 ETF (VOO)
The S&P 500 index of the largest U.S. stocks is one of the most closely followed benchmarks in the world. And this Vanguard fund linked to that key index is one of the simplest and most effective long-term ETFs out there.
