5 Best Vanguard ETFs for Portfolio Diversification

In this article, we will take a look at the 5 best Vanguard ETFs for portfolio diversification. To see more such companies, go directly to 10 Best Vanguard ETFs for Portfolio Diversification.

5. Vanguard Financials Index Fund ETF (NYSE:VFH)

Number of Hedge Fund Holders: 5

2022 showed that the financial sector is one of the best–positioned industries to thrive in a rising interest rate environment. The industry is also full of stable, dividend-paying stocks. The Vanguard Financials Index Fund ETF (NYSE:VFH) is one of the best Vanguard ETFs for portfolio diversification. Vanguard Financials Index Fund ETF (NYSE:VFH) invests in financial services companies. Some of the biggest holdings of the ETF include JPMorgan, Wells Fargo and Bank of America (NYSE:BAC), America’s top three banks. Its biggest holding is Berkshire Hathaway Inc. (NYSE:BRK-B), in which the ETF has an $877 million stake.

On January 10, Odeon Capital’s Dick Bove upgraded Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC), among several other stocks. The analyst said:

“I, like many others, believe there will be a recession, but I do not believe it will be severe. The time has come to focus on the fact that there has been a cycle change and this change definitely benefits banking.”