9 Vanguard ETFs With The Lowest Expense Ratios

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Vanguard offers nearly two dozen ETFs with 0.03% expense ratios. Bond ETFs in the lineup deliver yields ranging from 3.29% to 4.77%. Among the most popular Vanguard ETFs are index funds that track the overall stock market and the S&P 500. Investors rethink 'hands off' investing and decide to start making real money

The Vanguard Group of Valley Forge, Pa., is beloved for its low-cost, index investment strategy. The firm offers nearly two dozen exchange-traded funds (ETFs) with expense ratios of only 0.03%. Here is a selection of nine of the most popular.

No. 9: Vanguard FTSE Developed Markets Index Fund ETF (VEA)

This international index fund seeks to match the performance of the FTSE Developed All Cap ex U.S. Index. It invests in companies of all sizes from Canada and the major markets of Europe and the Pacific region.

VEA is up 6.31% year to date, as of Jan. 29. It has net assets of $268.97 billion, a PE ratio of 19.22, and a yield of 3.22%.

No. 8: Vanguard Long-Term Bond Fund (BLV)

This ETF includes U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of greater than 10 years.

BLV is down 0.13% YTD, with net assets of $8.53 billion. The fund offers a yield of 4.67%.

No. 7: Vanguard Mortgage-Backed Securities Index Fund ETF (VMBS)

A real estate play, VMBS tracks the performance of the Bloomberg U.S. MBS Float Adjusted Index. That includes U.S. agency mortgage-backed pass-through securities.

The ETF is up 0.5% YTD, with net assets of $16.62 billion. It offers a yield of 4.21%.

No. 6: Vanguard S&P 500 ETF (VOO)

One of Vanguard's most popular ETFs, VOO tracks the performance of the S&P 500 at a very low cost. Vanguard attempts to hold each stock in the same proportion as its weighting in the index.

The fund is up 0.43% YTD. It has net assets of $1.47 trillion, a PE ratio of 27.98, and yield of 1.13%.

No. 5: Vanguard Total Treasury ETF (VTG)

This one tracks the performance of the Bloomberg U.S. Treasury Total Return Unhedged USD Index. The intermediate-duration portfolio aims to provide current income with high credit quality.

The fund (VTG) is down 0.14% year to date. It has net assets of $59 million.

No. 4: Vanguard Total Corporate Bond ETF (VTC)

VTC provides broad, diversified exposure to the investment-grade U.S. corporate bond market, seeking to track the Bloomberg U.S. Corporate Bond Index.

The ETF's performance year to date is up 0.4%. The fund has net assets of $1.51 billion and has a 4.77% yield.

No. 3: Vanguard Total Stock Market Index Fund ETF (VTI)

This ETF is among Vanguard's most popular, with $2.06 trillion in net assets. With large-, mid- and small-cap investments, the fund tracks the performance of the CRSP US Total Market Index.

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VTI has risen 0.81% YTD. The PE ratio is 27.15 and the yield is 1.12%.

No. 2: Vanguard Tax-Exempt Bond Index Fund ETF (VTEB)

This one uses a benchmark index that measures the investment-grade segment of the U.S. municipal bond market. The goal is to invest at least 80% of the fund’s assets in securities whose income will be exempt from federal income taxes and the federal alternative minimum tax.

The ETF is up 0.65% YTD, with net assets of $45.15 billion. VTEB offers a yield of 3.29%.

No. 1: Vanguard Short-Term Bond Index Fund ETF (BSV)

BSV tracks the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index by investing in U.S. government, high-quality corporate, and investment-grade international dollar-denominated bonds.

The fund is up 0.06% year to date. With net assets of $68.14 billion, BSV has a yield of 3.83%.

More Vanguard 0.03% ETFs

Other Vanguard ETFs with this super low expense ratio cover intermediate-term bonds, Treasuries and corporate bonds. Find a complete list here.

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