5 Best Low Cost ETFs

4. Vanguard Russell 1000 Index Fund ETF (NASDAQ:VONE)

5-Year Share Price Performance as of April 15: 73.04%

The Vanguard Russell 1000 Index Fund ETF (NASDAQ:VONE), placed among the best low cost ETFs, invests in stocks from the Russell 1000 Index, which includes a range of large US companies. The ETF was introduced on September 20, 2010. As of March 31, 2024, it has net assets of $7 billion and holds 1,007 stocks. Its expense ratio is 0.08% as of December 22, 2023.

Alphabet Inc. (NASDAQ:GOOGL) is one of the largest holdings of the Vanguard Russell 1000 Index Fund ETF (NASDAQ:VONE). On March 22, Alphabet Inc. (NASDAQ:GOOGL)’s stock rose after Wedbush Securities included the company in its Best Ideas List.

According to Insider Monkey’s fourth quarter database, 214 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOGL), compared to the previous quarter when 221 funds had invested in the stock.

Pershing Square Holdings stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its fourth quarter 2023 investor letter:

“In early 2023, we initiated an investment in Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, at a highly attractive valuation during a period when apprehension about the company’s competitive positioning in AI overshadowed the high-quality nature of its business and strong growth prospects.

Since we initiated our position, the company has delivered impressive operating results. With two of the highest ROI and most resilient ad formats in Search and YouTube, Google occupies a dominant position in the secularly fast-growing digital advertising market. As the digital advertising market recovered over the course of the year, revenue growth in Google’s advertising business accelerated from 3% in Q1 2023 to 10% in Q4 2023. Moreover, the company realized significant progress on its substantial margin expansion opportunity and maintained a robust capital return program. In 2023, operating profit margins expanded by approximately 225 basis points (bps), excluding one-time severance and real estate charges, as the Cloud segment reached breakeven profitability. We expect continued cost control, automation efficiencies, and operating leverage in under-earning segments (Cloud & YouTube) to sustain margin expansion as Google invests behind AI initiatives.

The company is using its ample free cash flow to repurchase approximately 4% of its outstanding shares on an annual basis…”