Ready to dive into the world of Vanguard stocks and see how they're performing? Let's get started.
The Landscape of Vanguard Stocks: More Than Just Individual Shares
Before we get into the nitty-gritty, it's crucial to understand what "Vanguard stocks" truly means. Vanguard is not a publicly traded company like Apple or Microsoft. You can't buy a share of "Vanguard" on the stock exchange.
Instead, when people talk about "Vanguard stocks," they are almost always referring to the exchange-traded funds (ETFs) and mutual funds that Vanguard offers. These are investment products that hold a basket of stocks, giving you instant diversification. For example, when you buy a share of the Vanguard Total Stock Market ETF (VTI), you are not buying a piece of Vanguard the company; you are buying a tiny ownership stake in over 3,500 different U.S. companies! This is the core principle of Vanguard's investing philosophy: broad diversification and low costs.
So, let's explore how these Vanguard funds are performing and how you can invest in them.
Step 1: Getting a Snapshot of Vanguard's Flagship Funds
So, how are Vanguard's popular funds doing? Let's look at some key players.
Sub-heading: Vanguard Total Stock Market ETF (VTI)
This is one of Vanguard's most well-known and widely held ETFs. It aims to track the performance of the entire U.S. stock market, including large, mid, and small-cap companies. Think of it as a one-stop shop for U.S. equity exposure.
As of late June 2025, here's a look at VTI's performance:
Year-to-Date (YTD) Return (NAV): 3.68%
1-Year Return (NAV): 12.98%
5-Year Return (NAV): 103.24%
Current Price: Approximately $299.36 per share.
The fund's top holdings are a who's who of American corporations, including Microsoft, NVIDIA, Apple, and Amazon, reflecting the market's concentration in major tech companies.
Sub-heading: Vanguard 500 Index Fund (VOO)
This ETF is designed to track the performance of the S&P 500 Index, which represents the 500 largest U.S. companies. It's a benchmark for the overall health of the U.S. stock market.
Here's how VOO has been performing (data from late 2024):
1-Year Return: 24.98% (outperforming the average large-blend fund)
While VTI offers a broader reach, VOO focuses on the largest and most established companies, which can lead to slightly different performance outcomes.
Sub-heading: Vanguard FTSE Emerging Markets ETF (VWO)
If you're looking beyond the U.S., VWO provides exposure to stocks in developing countries. This can add a layer of growth potential but also comes with higher risk.
As of May 2025:
1-Year Return (NAV): 12.40%
Current Price: Approximately $49.11 per share.
It's important to note that emerging markets can be more volatile, as seen in its historical performance.
Step 2: A Step-by-Step Guide to Investing in Vanguard Funds
So, you've seen how these funds are doing and you're ready to jump in. Excellent! Here's a detailed guide on how to get started.
Sub-heading: Step 2.1: Choose Your Investment Goal and Account Type
Before you even think about buying a fund, you need a plan. What are you saving for? Retirement? A down payment on a house? Your child's education? Your goal will help you determine the right type of account.
General Investing Account: This is a standard brokerage account where you can buy and sell investments. It's great for short-to-medium-term goals as it offers flexibility, but any gains are subject to taxes.
Retirement Account (IRA/401k): These accounts offer significant tax advantages for long-term retirement savings. A Traditional IRA offers tax deductions on contributions and tax-deferred growth, while a Roth IRA allows for tax-free withdrawals in retirement.
Other Accounts: Vanguard also offers accounts for trusts, organizations, and education savings (like 529 plans).
Sub-heading: Step 2.2: Open a Vanguard Brokerage Account
This is your gateway to investing with Vanguard. The process is simple and can be completed online in a matter of minutes.
Go to the Vanguard Website: Navigate to the "Personal investors" section.
Select "Open an account": You will be guided through a series of questions.
Provide Your Information: Be prepared with your Social Security number, bank account details, and employment information.
Fund Your Settlement Fund: This is a crucial step. When you open a brokerage account, you will have a "settlement fund," which acts as a holding place for your cash. You need to transfer money from your bank account to this settlement fund before you can buy any investments. You can do this through an electronic bank transfer.
Sub-heading: Step 2.3: Choose and Purchase Your Vanguard ETF or Mutual Fund
Now for the fun part!
Log in to your account: Once your account is set up and funded, log in to the Vanguard platform.
Search for the Fund: Use the ticker symbol (e.g., VTI, VOO, VWO) or the fund name to find the investment you want.
Choose Your Order Type: You'll typically have two main options for purchasing ETFs:
Market Order: This buys the shares at the current market price. It's executed immediately during market hours.
Limit Order: This allows you to set a specific price you are willing to pay. The order will only be executed if the share price reaches that limit. This is useful for volatile stocks but can result in your order not being filled if the price never hits your limit.
Enter the Amount: You can specify the number of shares you want to buy or the dollar amount you want to invest. Vanguard offers fractional shares for their ETFs, which is a fantastic feature for new investors, as it allows you to invest a specific dollar amount regardless of the share price.
Review and Confirm: Double-check all the details of your order before confirming.
Sub-heading: Step 2.4: Monitor Your Investments and Rebalance Your Portfolio
Investing is a marathon, not a sprint. Once you've made your purchase, don't just forget about it.
Monitor Performance: Keep an eye on your portfolio's performance through your Vanguard account. You can track the returns of your funds and see how they are performing against their benchmarks.
Rebalancing: Over time, your asset allocation may drift. For example, if your stock ETFs perform exceptionally well, they may grow to be a larger percentage of your portfolio than you intended. Rebalancing involves selling some of your well-performing assets and buying more of your underperforming ones to get back to your original target allocation. This is a disciplined way to manage risk.
10 Related FAQ Questions
How to get started with a small amount of money? Vanguard is very beginner-friendly. For ETFs like VTI, you can start with as little as $1 by using their fractional share investing feature. For mutual funds, the minimum investment is typically $3,000, though some funds have lower minimums.
How to know if a Vanguard fund is right for me? You should consider your investment goals, time horizon, and risk tolerance. A long-term investor with a high-risk tolerance might lean towards a total stock market fund, while someone closer to retirement might prefer a more conservative balanced fund.
How to find the expense ratio of a Vanguard fund? The expense ratio is a crucial metric, as it's the annual fee you pay. You can easily find it on the fund's profile page on the Vanguard website under the "Performance & fees" section. Vanguard is known for its exceptionally low expense ratios.
How to check the top holdings of a Vanguard ETF? You can view the top holdings and sector breakdown of any Vanguard fund on its dedicated profile page on the Vanguard website. This gives you a clear picture of what companies you are investing in.
How to set up automatic investments? Once your brokerage account is set up, you can set up automatic transfers from your bank account to your settlement fund, and then set up automatic investments from your settlement fund into your chosen funds. This is a great way to practice dollar-cost averaging.
How to sell a Vanguard ETF? Similar to buying, you can place a sell order through your Vanguard brokerage account. You can choose a market order to sell at the current price or a limit order to sell at a specific price.
How to transfer an existing brokerage account to Vanguard? Vanguard makes it easy to transfer accounts from other brokers. You can initiate the transfer process on the Vanguard website, and they will guide you through the necessary paperwork.
How to understand the difference between an ETF and a mutual fund? ETFs trade on a stock exchange like a stock and their price fluctuates throughout the day. Mutual funds are priced only once a day at the end of the trading day. Both are excellent options for diversification, but ETFs may offer more trading flexibility.
How to read a fund's performance chart? When looking at a performance chart, pay attention to different time periods (YTD, 1-year, 5-year, etc.), and compare the fund's performance to its benchmark index. This will help you understand how well the fund is doing relative to the market it's trying to track.
How to get professional advice from Vanguard? If you need personalized guidance, Vanguard offers advisory services for a fee. You can explore their various advice options, from digital advisors to human financial advisors, on their website.
