10 Best Vanguard Funds for Long-Term Investing
Now that you know that you’re a long-term investor and you know which fund types work best for long-term investing, the following lists the 10 best Vanguard funds to buy and hold for the long term, in no particular order.
1. Vanguard Total Stock Market Index (VTSMX): Vanguard’s VTSMX is the largest mutual fund in the world for two primary reasons: It’s a diversified stock index fund and its expenses are extremely low. The portfolio provides exposure to the entire U.S. stock market, which includes small-, mid-, and large-cap stocks. This includes over 3,500 securities. The expenses are only 0.15 percent, or $15 for every $10,000 invested, and the minimum initial investment is $3,000.
2. Vanguard 500 Index (VFINX): This index fund tracks the S&P 500 index, which means it holds about 500 of the largest U.S. stocks. So, with VFINX shareholders will get exposure to stocks like Apple (AAPL), Facebook (FB), Amazon (AMZN), and Alphabet (GOOG, GOOGL), the parent company of Google. VFINX is a smart choice for investors who want to build their own portfolio that includes other stock funds, such as small-, and mid-cap funds.
The expense ratio for VFINX is 0.15 percent and the minimum initial investment is $3,000.
3. Vanguard Total Bond Market Index (VBMFX): Although long-term investing is often associated with stocks, most investors will need to have a portion of their portfolios invested in bonds and VBMFX is a smart choice for the same reason as most other index funds: they are well-diversified, low-cost investments. The VBMFX portfolio tracks the Bloomberg Barclays Aggregate U.S. Bond Index, which consists of more than 8,000 U.S. bond securities. The expense ratio for VBMFX is 0.15 percent and the minimum initial investment is $3,000.