Quick Answer: What Is The Best Vanguard Index Fund?

What Vanguard fund does Warren Buffett recommend?

Since it is passively managed and has a high correlation to the S&P 500 Index, Buffett would consider an investment in the Vanguard Value Index Fund Investor Shares..

What is the most aggressive Vanguard fund?

Best Vanguard Funds for Aggressive Investors: Vanguard Explorer (VEXPX) Click to Enlarge If you want to turn up the growth potential and you want to go all-the-way aggressive, look no further than Vanguard Explorer (MUTF:VEXPX).

Because of its portfolio turnover, it is very tax-efficient, so it is a great fund for taxable accounts. … A better investment strategy would be to make the Vanguard Total Stock Market Index fund a core holding in a diversified portfolio that includes other asset classes, such as bonds, foreign securities and cash.

Is Vanguard Primecap a good fund?

Overall, Vanguard PRIMECAP Fund Investor ( VPMCX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard PRIMECAP Fund Investor ( VPMCX ) looks like a somewhat weak choice for investors right now.

Which Vanguard funds pay the highest dividends?

Best Vanguard funds for dividends.Vanguard High Dividend Yield Index Fund Admiral Shares (VHYAX)Vanguard Dividend Growth (VDIGX)Vanguard Equity Income Fund Investor Shares (VEIPX)Vanguard International High Dividend Yield Index Fund Admiral Shares (VIHAX)Vanguard Dividend Appreciation Index Fund (VDADX)More items…•

How much money do you need to start a Vanguard account?

The minimum initial investment for Vanguard Target Retirement Funds and Vanguard STAR Fund is $1,000. A $3,000 minimum applies to most other funds. Fund-specific details are provided in each fund profile. All investing is subject to risk, including the possible loss of the money you invest.

What are the best performing Vanguard funds?

The 8 Best Vanguard Funds Worth Buying Right Now in 2020Total Stock Market (ETF) – VTI.Social Index Fund (Admiral Shares) – VFTAX.Vanguard Target Retirement 2050 Fund (Investor Shares) – VFIFX.REIT Index Fund (Admiral Shares) – VGSLX.Growth Index Fund (Admiral Shares) – VIGAX.Total Bond Market (ETF) – BND.More items…•

What makes Vanguard different?

Vanguard has a fairly unique structure in terms of investment management companies. The company is owned by its funds. The company’s different funds are then owned by the shareholders. … Vanguard’s structure allows the company to charge very low expenses for its funds.

How safe is Vanguard?

Your money is not as safe as it would be in a bank or savings with FDIC and SBIC, but Vanguard is not about to go under and depending on the particular investment, some mutual funds offer more protection than others.

Is Vanguard or Fidelity better?

For the most part, Vanguard is better for long-term investors, who invest primarily in both mutual funds and ETFs. On the other hand, Fidelity is better suited for active investors. … Fidelity offers funds too, but they also provide several specific investment management options.

What happens if Vanguard goes out of business?

Essentially, your fund hires the fund company to manage its assets. … If the fund company goes bankrupt, the assets would remains the same, one would just have to hire a new company to manage it. In addition, one of the features specific to Vanguard is that it is set up as client-owned.

Should I invest directly with Vanguard?

The bottom line: Vanguard is the king of low-cost investing, making it ideal for buy-and-hold investors and retirement savers. But active traders will find the broker falls short despite its $0 stock trading commission, due to the lack of a strong trading platform.

What is the lowest risk Vanguard fund?

Vanguard Short-Term Corporate Bond ETF (VCSH, $77.74) is a low-risk index bond exchange-traded fund that offers investors a healthy yield of 3.6%.

Is Vanguard good for beginners?

Vanguard Total Stock Market Index Fund (VTSAX) The Vanguard Total Stock Market Index Fund may be one of the best index funds for beginners if you’re interested in building a three-fund portfolio. … This fund has one of the lowest expense ratios of any of Vanguard’s index funds, at 0.04%.