Top 10 Best-Performing Vanguard ETFs for December 2024

Vanguard exchange-traded funds (ETFs) make investing in lots of assets all at once easier. And Vanguard has more than 80 ETFs to choose from.

What is a Vanguard ETF?

Vanguard ETFs are funds that group assets, such as stocks or bonds, into one investment. By investing in an ETF, investors can instantly diversify their portfolios.

The provider, in this case, Vanguard, owns the underlying assets and creates a fund that tracks their performance. Then, the provider sells shares in that fund to investors.

Shareholders own a portion of an ETF but don't own the actual assets in the fund. Then, buyers and sellers trade the ETF throughout the day on an exchange, much like a stock.

Most ETFs follow a similar passive strategy to index funds.

» What's the difference? Index funds vs. ETFs

Are Vanguard ETFs a good investment?

All investments carry some risk, and Vanguard ETFs are no exception. But Vanguard is a fund provider with a reliable company history, and well-diversified ETFs tend to be safer than individual stocks. That's because if a single asset within an ETF goes out of business, you have hundreds, or even thousands, of other assets that can help bolster your portfolio.

You can find broad market ETFs, such as ones that track the S&P 500, and sector-specific ETFs (such as oil ETFs, commodity ETFs and clean energy ETFs) to diversify your portfolio further.

» Learn more: Understand the different types of mutual funds

10 best-performing Vanguard ETFs

Here are the top 10 best-performing Vanguard ETFs this month and their expense ratios.

Keep in mind that past performance doesn't guarantee future results, and performance is just one metric of many to consider when selecting investments.

Source: Finviz. Data is current as of Dec. 2, 2024, and is intended for informational purposes only, not for trading purposes.

10 popular Vanguard ETFs

Vanguard's best-performing ETFs listed above offer more diversification than a single stock, but often, these ETFs may only track a specific sector, region, or company size. For more diversification, Vanguard offers broad ETFs that span entire asset classes.

Here are 10 examples of some of Vanguard’s most popular ETFs.

1. Vanguard Total Bond Market ETF (BND)

BND tracks the performance of a broad bond index. This fund holds over 10,000 bonds with an average duration of 6 years. It is classified as a conservative- to moderate-risk fund, meaning it will not have as much growth potential as a stock-based fund.

» Check out bond ETFs

2. Vanguard Total International Bond ETF (BNDX)

BNDX uses hedging strategies that attempt to help with uncertainty in exchange rates. This fund holds nearly 7,000 bonds with an average duration of 7.1 years. This bond fund has global representation, but most of its holdings are from Europe.

3. Vanguard Total International Stock ETF (VXUS)

This stock fund tracks the performance of the FTSE Global All Cap ex U.S. Index, which focuses on international companies. It holds over 8,000 stocks and is categorized as an "aggressive" fund, meaning it may be subject to big share price swings. VXUS holds mostly emerging market, European and Pacific stocks.

4. Vanguard Total Stock Market ETF (VTI)

VTI tracks the CRSP U.S. Total Market Index and includes large-, mid- and small-cap stocks. This fund contains nearly 4,000 stocks and is considered "moderate to aggressive." Its top three holdings include Microsoft, Apple and Nvidia.

5. Vanguard High Dividend Yield ETF (VYM)

This ETF follows stocks that pay high dividends — a way to gain not only in share price but also in regular dividend payments. VYM follows the FTSE High Dividend Yield Index, which charts the investment return of company stocks that pay dividends. The fund includes shares from more than 550 domestic stocks with regular dividend payments.

» Check out high-dividend ETFs

6. Vanguard Growth ETF (VUG)

VUG mirrors the performance of the CRSP US Large Cap Growth Index, which contain nearly 200 high-growth companies and is considered a “moderate to aggressive” risk. The fund’s three top holdings are Microsoft, Apple and Nvidia.

7. Vanguard Small-Cap ETF (VB)

VB tracks the CRSP US Small Cap Index, which measures the investment return of small-capitalization stocks — that is to say, stocks with the smallest market capitalization among publicly traded stocks. This fund has more than 4,000 stocks and is considered a “more aggressive” fund. About one-fifth of its holdings are industrial companies.

8. Vanguard Information Technology ETF (VGT)

This ETF follows the stock prices of more than 320 software, semiconductor and other IT-focused companies, and its risk profile is considered “aggressive.” More than a third of its holdings are in Microsoft, Apple and Nvidia stocks.

9. Vanguard Energy ETF (VDE)

VDE tracks the investment return of stocks of over 100 companies in the industry sector, such as oil, natural gas and coal producers. The risk profile is considered “aggressive” and the two largest holdings are Exxon Mobil and Chevron.

10. Vanguard Real Estate ETF (VNQ)

This ETF focuses on stocks of real estate investment trusts (REITs), which are companies that buy office buildings, hotels, and other types of real estate. VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index and invests in about 160 real estate funds.

How much does it cost to buy Vanguard ETFs?

Like stocks, you purchase ETFs by their share price, so when looking at the cost of an ETF, you'll want to multiply the cost of a single share by the number of shares you want to buy.

According to Vanguard, "an ETF's minimum is the price of a single share, which could be as little as $50, depending on the ETF." However, you can buy a fractional share of a Vanguard ETF for $1.

In addition to the actual purchase price of an ETF, it's also important to consider ongoing fees, such as expense ratios. Expense ratios are annual fees investors pay to cover a fund's expenses. For example, if you invest in a fund with a 1% expense ratio, you'll pay $10 annually for every $1,000 invested.

» Examine the cost: Calculate the impact of fees on mutual fund returns

How do you buy Vanguard ETFs?

There are two ways to purchase Vanguard ETFs: directly from Vanguard or by opening a brokerage account. You'll need to choose the type of investment account you'd like to open, such as a traditional brokerage account or a Roth or traditional individual retirement account.

Once you have opened an investing account and have added money, you'll need to decide which ETFs you'd like to purchase.

» Want more options? See our picks for the best brokers for funds.

The bottom line

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.