Vanguard differs greatly from most other asset managers and mutual fund companies. Organized as a mutual company, the firm is ultimately owned by the shareholders who invest in its funds. When you invest in Vanguard funds, you become a partner as well as a customer.
The firm also sets itself apart for its focus on long-term investing. When competitors ramped up their cryptocurrency offerings, Vanguard took the stance that such volatile assets generally don’t belong in retirees’ portfolios. Instead, it encouraged investors to “tune out the noise” and focus on “time-tested principles.”
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“Vanguard’s retirement investing philosophy is built on principles of broad diversification, low costs and a disciplined, long-term focus,” says Brian Wimmer, head of multi-asset solutions for Vanguard. “When it comes to choosing the right funds for a retirement portfolio, we encourage investors to start by considering their time horizon, risk tolerance and retirement objectives.”
Here are seven of the best Vanguard funds to invest in for retirement:
| Fund | Expense ratio |
| Vanguard Target Retirement 2040 Fund (ticker: VFORX) | 0.07% |
| Vanguard LifeStrategy Growth Fund (VASGX) | 0.14% |
| Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) | 0.09% |
| Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) | 0.04% |
| Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) | 0.04% |
| Vanguard International Core Stock Fund (VWICX) | 0.48% |
| Vanguard Global ESG Select Stock Fund (VEIGX) | 0.58% |
Vanguard Target Retirement 2040 Fund (VFORX)
If you’re looking for one fund to rule them all, there isn’t one because every investor has unique needs. However, a target-date fund like VFORX is about as close as retirement investors can get.
“Target retirement funds can be an effective, all-in-one solution that automatically adjusts the asset allocation over time to provide age-appropriate levels of risk and return,” Wimmer says.
The funds grow more conservative as the target retirement date nears. This means you won’t need to do this rebalancing yourself. It’s the epitome of a set-it-and-forget-it investment strategy.
Vanguard offers a dozen target retirement funds with target dates through 2070. Simply choose the fund that most closely aligns with your anticipated retirement year. Or, if you’re already in retirement, opt for the Vanguard Target Retirement Income Fund (VTINX), which is designed for current retirees.
Vanguard LifeStrategy Growth Fund (VASGX)
Another one-fund solution for retirement investors is Vanguard’s LifeStrategy funds. Unlike the target-date fund listed above, the LifeStrategy funds are designed to maintain a fixed allocation in perpetuity. This means that as your time horizon changes, you may need to switch funds, since they won’t adjust their risk for you.
There are four different LifeStrategy funds to choose from. For instance, VASGX is about 80% stocks and 20% bonds. This makes it a fairly aggressive fund best used when you have more than five years until you want to withdraw your money.
If that’s too long to wait, consider the Vanguard LifeStrategy Income Fund (VASIX). At 20% stocks and 80% bonds, it’s designed for when you’re three to five years away from withdrawal.
There’s also a 40%-stock-to-60%-bond fund (VSCGX) and a 60%-stock-to-40%-bond fund (VSMGX) for more middle-of-the-road investors.
Vanguard Total World Stock Index Fund Admiral Shares (VTWAX)
Most retirement portfolios need stocks and bonds for adequate diversification and to balance risk, but that doesn’t mean you need dozens of funds. If you want a bit more control than the previous options provide without getting complicated, VTWAX may become your best friend. It is as close to an all-in-one stock fund as you’re likely to get.
VTWAX provides exposure to the entire stock universe in one package. With nearly 10,000 stocks, you’ll get some domestic, developed foreign and emerging-market stocks, all for the reasonable price of 0.09% in annual expenses.
The fund weights more toward U.S. stocks at 63%, but this is also appropriate for most investors as it reflects the global market capitalization. The U.S. stock market represents about 72% of the global market. By tracking this weight, VTWAX ensures your portfolio captures the returns of the stock market as a whole, eliminating the need to guess whether U.S. or international markets will perform better over the next few decades.
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
If you like to set your own domestic and international stock allocations, VTSAX could be for you. The fund is considered a bedrock of U.S. stock investing, providing exposure to the whole spectrum of the domestic market. This means with one purchase, you get large-, mid- and small-cap stocks, and both growth and value stocks from U.S. companies.
The portfolio of more than 3,500 stocks touches on every sector — although, like the U.S. market, it favors tech stocks at about 40% of the portfolio. Also like the U.S. stock market, it uses market-cap weighting by letting each holding’s relative value determine its weight in the portfolio. While small- and mid-cap stocks are represented, their share of the portfolio value is overshadowed by their bigger brethren. That said, you’ll still get a more diversified approach to the market than if you chose a pure-play large-cap fund like those based on the S&P 500.
[READ: 10 ETFs to Build a Diversified Portfolio.]
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)
Don’t neglect fixed-income funds when constructing your retirement portfolio. The stability these funds offer can be key in preserving your capital. Not to mention, the regular income some offer can help provide a paycheck replacement in retirement. This is where funds like VBTLX come into play.
This index fund does for the U.S. investment-grade bond market what VTSAX does for the U.S. equity market: It gives you one-stop access to the whole shebang. VTSAX holds over 11,400 bonds, including corporates, Treasurys and mortgage-backed securities. Leaning heavily on U.S. Treasury and government agency securities keeps the risk low.
There is a $3,000 minimum to get the Admiral shares, which have a 0.04% expense ratio and 4.1% 30-day SEC yield. If this is too much to invest, there’s also an ETF version that can be purchased for as little as $1 under the ticker symbol BND.
Vanguard International Core Stock Fund (VWICX)
There’s often a tendency toward home-country bias in retirement investing. It can be easier and more comfortable to invest in companies you recognize. But including international funds like VWICX in your portfolio will ensure you get to benefit from other nations’ growth and stability, too.
VWICX invests in companies from developed and emerging markets across sectors and styles. The managers look for a mix of growth and value stocks to keep the overall portfolio balanced. It’s predominantly invested in Europe, at over 40% of the portfolio. Half of the fund’s holdings are almost evenly split between developed Asia Pacific and emerging markets, with about 6.7% in Canada.
As an actively managed fund, it comes with a slightly higher expense ratio. However, it’s still low for this type of fund, according to Morningstar. If you’re able to put $50,000 into the fund, you can get a 0.1% discount with its Admiral shares, which are sold under the ticker VZICX. Otherwise, there’s a $3,000 investment minimum for VWICX.
Vanguard Global ESG Select Stock Fund (VEIGX)
Socially conscious retirement investors can rejoice because Vanguard has some great offerings for them, such as the Vanguard Global ESG Select Stock Fund. This actively managed fund uses proprietary screening methods to find global mid- and large-cap stocks with leading environmental, social and governance (ESG) practices alongside strong financials.
ESG-focused companies often prioritize more sustainable and responsible business practices. This can make these investments less risky since they’ll have less exposure to adverse events like regulatory changes or environmental crises.
VEIGX maintains a “highly selective” portfolio of 35 to 45 stocks intended to be held for the long term. But don’t let the small number fool you: It’s still a well-diversified fund with exposure to nine countries and no more than 7% in each holding.
It’s also available for a slightly lower expense ratio through the Admiral shares class under the ticker VESGX.
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The 7 Best Vanguard Funds for Retirement originally appeared on usnews.com
Update 11/19/25: This story was previously published at an earlier date and has been updated with new information.
