Ironically, despite offering a lineup of 91 exchange-traded funds (ETFs), Vanguard’s late founder and chairman John Bogle was never a fan of the structure.
In 2012, Bogle was asked by ABC News whether ETFs had gotten out of hand. His response? “It’s absolute speculation, and it’s hurt a lot of people.”
Bogle acknowledged that in theory, owning something like an S&P 500 ETF and never trading it was fine. But in practice, the ease of trading made it far more likely investors would be tempted to buy and sell at the wrong times.
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“Vanguard did an exhaustive study on ETF use and ignored that point,” Bogle added. “You’re probably 25% more likely to trade with an ETF. It’s not day and night, but the trend exists. And these are the Vanguard experiences; others are certainly worse.”
More than a decade later, Bogle’s skepticism looks prophetic. ETF issuers today are cranking out products Bogle would have loathed: single-stock ETFs, leveraged and inverse ETFs, derivative-only income ETFs paying double-digit yields, and volatility-linked ETFs built around VIX futures.
By contrast, Vanguard’s ETF lineup has remained grounded in the core principles that helped the firm succeed in the first place: low fees and broad diversification.
Expense ratios across the 91-fund lineup range from just 0.03% to a still-reasonable 0.20%. The offerings span global equity exposure across sectors and regions, bond ETFs targeting a range of maturities and credit qualities, and a handful of factor-based strategies aimed at tilting toward attributes like value, momentum or quality.
Here are 10 of the best Vanguard ETFs to buy in 2025:
| ETF | Expense ratio |
| Vanguard S&P 500 ETF (ticker: VOO) | 0.03% |
| Vanguard Total Stock Market ETF (VTI) | 0.03% |
| Vanguard FTSE Developed Markets ETF (VEA) | 0.03% |
| Vanguard FTSE Emerging Markets ETF (VWO) | 0.07% |
| Vanguard Total International Stock ETF (VXUS) | 0.05% |
| Vanguard Total World Stock ETF (VT) | 0.06% |
| Vanguard Total Bond Market ETF (BND) | 0.03% |
| Vanguard Total International Bond ETF (BNDX) | 0.07% |
| Vanguard Emerging Markets Government Bond ETF (VWOB) | 0.15% |
| Vanguard Total World Bond ETF (BNDW) | 0.05% |
Vanguard S&P 500 ETF (VOO)
“Benefits unique to ETFs include lower investment minimums, real-time pricing and tax efficiencies due to the creation process and ability to defer capital gains,” says Lauren Wybar, wealth advisor executive at Vanguard. “ETFs offer diversification, low costs and the ability to trade shares during the trading day.”
With over $660 billion in assets under management (AUM), VOO is the largest U.S.-listed ETF, having surpassed the older SPDR S&P 500 ETF Trust (SPY) in February. For a 0.03% expense ratio, this ETF tracks the S&P 500 index, providing exposure to large-cap U.S. stocks with an earnings and liquidity screen.
Vanguard Total Stock Market ETF (VTI)
VTI is VOO’s more diversified cousin. Although it lacks the brand-name recognition of the S&P 500, VTI’s benchmark, the CRSP U.S. Total Market Index, is far more diversified. Unlike VOO, VTI goes beyond just 500 large caps to include thousands more mid- and small-cap stocks representing the U.S. market.
However, the top holdings for VTI and VOO are very similar, barring a few percentage points. This is because both ETFs use market-cap-weighted indexes, where the larger a company is, the greater allocation it gets assigned. VTI charges the same low 0.03% expense ratio as VOO does.
Vanguard FTSE Developed Markets ETF (VEA)
VOO and VTI are great picks for the backbone of a portfolio, but neither should be the sole choice. Vanguard believes in the power of international diversification, and it offers numerous ETFs for that role. For developed markets, the ETF of choice is VEA, which tracks the FTSE Developed All Cap ex U.S. Index.
This market-cap-weighted benchmark owns over 3,800 large-, mid- and small-cap stocks domiciled in Canada and notable European and Pacific nations such as the U.K., France, Germany, Switzerland, Japan and Australia. The ETF now charges a 0.03% expense ratio after a recent reduction.
Vanguard FTSE Emerging Markets ETF (VWO)
VEA doesn’t provide investors with comprehensive international equity exposure. By design, it is only limited to countries classified as “developed” markets. The other half can be accessed by VWO, which for a 0.07% expense ratio tracks the FTSE Emerging Markets All Cap China A Inclusion Index.
Countries represented in VWO include China, India, Taiwan, Brazil, Saudi Arabia and South Africa. Vanguard gives this ETF a maximum score of five on its risk scale, noting that “share value may swing up and down more than that of stock funds that invest in developed countries.”
Vanguard Total International Stock ETF (VXUS)
Investors prioritizing simplicity can opt to buy VXUS in lieu of combining VEA and VWO. This ETF tracks the FTSE Global All Cap ex U.S. Index, which spans over 8,500 stocks across both developed and emerging markets. It currently charges a low 0.05% expense ratio.
The composition of VXUS is based on market-cap weighting. Because developed markets have outperformed emerging markets, they currently make up the bulk of this ETF’s portfolio, at around 74%, with emerging markets comprising the other 26%. However, this is dynamic and can change over time.
[READ: 7 Best Long-Term ETFs to Buy and Hold]
Vanguard Total World Stock ETF (VT)
Combining VTI and VXUS provides investors with a globally diversified, market-cap-weighted stock portfolio. However, it is by no means totally hands-off. Investors still need to decide on how much to allocate between VTI and VXUS and how often they should rebalance. This can introduce friction.
Picking VT solves that problem neatly. By tracking the FTSE Global All Cap Index, this Vanguard ETF delivers exposure to about 9,800 stocks spanning U.S., international developed and emerging-market countries. All this comes at a reasonable 0.06% expense ratio, which was recently reduced from 0.07%.
Vanguard Total Bond Market ETF (BND)
“100% of Vanguard’s bond index funds are tracking within strict internal tolerances through risk-controlled optimization and disciplined trading strategies, and over 80% of funds earned back a portion of their expense ratio,” says Perryne Desai, senior manager of investment product strategy at Vanguard.
BND is Vanguard’s flagship bond ETF, with over $126 billion in AUM. This ETF is basically the bond equivalent of VTI. It tracks the Bloomberg U.S. Aggregate Float Adjusted Index, which holds over 11,300 domestic Treasury bonds, investment-grade corporate bonds and mortgage-backed securities.
Vanguard Total International Bond ETF (BNDX)
VTI has a bond equivalent in BND, and BNDX serves that same role for VXUS. This Vanguard ETF provides exposure to bonds from international markets via the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index. It currently spans over 6,600 holdings.
Unlike BND, BNDX includes currency hedging to neutralize the impact of exchange rate fluctuations. This matters because when you’re buying a bond fund, you’re investing for income and stability, not speculating on foreign currency moves. The ETF charges a 0.07% expense ratio.
Vanguard Emerging Markets Government Bond ETF (VWOB)
The countries found in VWO issue bonds just like the U.S. does with Treasurys, and to capture that opportunity, Vanguard offers VWOB. This ETF tracks the Bloomberg USD Emerging Markets Government RIC Capped Index for a higher, but still reasonable 0.15% expense ratio.
Unlike the previous Vanguard bond ETFs, VWOB pays a significantly higher 6.5% 30-day SEC yield, but that’s not a free lunch. You’re essentially lending money to governments from the likes of Saudi Arabia, Mexico, Turkey and Indonesia, which carry a higher risk of default than developed nations.
Vanguard Total World Bond ETF (BNDW)
“BNDW can serve as a single investment solution for clients seeking a globally diversified, low-cost bond portfolio, ensuring their investment strategy benefits from the ballast against equity risk,” Desai explains. This ETF combines both BND and BNDX in equal weights to deliver global bond exposure.
Investors who own VT may find BNDW appealing as a diversifier. Both ETFs possess a similar degree of international diversification but have differing drivers of risk and return. BNDW is more affected by interest rate changes and credit risk, as opposed to the earnings- and valuation-based risks driving VT.
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10 of the Best Vanguard ETFs to Buy for 2025 originally appeared on usnews.com
Update 05/19/25: This story was published at an earlier date and has been updated with new information.
