In this article, we will take a look at the 5 best Vanguard funds for retirement. To see more such funds, go directly to 13 Best Vanguard Funds for Retirement.
5. Vanguard Target Retirement 2040 Fund (NASDAQ:VFORX)
If you are planning to retire in the next 15 to 20 years, VFORX is a retirement fund you can consider. The fund’s goal is to incrementally decrease exposure to stocks and increase exposure to bonds. About 47% of the fund’s portfolio is taken up by Vanguard Total Stock Market Index Fund Institutional Plus Shares, while 32% goes to Vanguard Total International Stock Index Fund Investor Shares.
4. Vanguard Ultra-Short Bond ETF
Vanguard Ultra-Short Bond ETF invests in a diversified portfolio of high-quality and medium-quality fixed-income securities. The fund is expected to maintain a dollar-weighted average maturity of 0 to 2 years. This ETF is suitable for conservative investors who don’t want a lot of risks. As the ETF generates current income, it’s also a good choice for income investors. This ETF is also preferred by those who want to avoid fluctuations caused by interest rate volatility since the fund typically holds short-term bonds.
3. Vanguard Growth and Income Fund (NASDAQ:VQNPX)
This fund lies at the sweet spot between income and growth. Its goal is to outperform the Standard & Poor’s 500 Index. It’s ideal for those who want both dividend income and stock price appreciation returns. Some of the top stocks you will get exposure to by investing in the fund include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Tesla, NVIDIA Corporation (NASDAQ:NVDA) and Berkshire Hathaway Inc. (NYSE:BRK-B).
2. Vanguard 500 Index Fund ETF
VOO tracks the performance of the S&P 500 index. It’s one of the best ways to diversify your portfolio and invest for the long term. The ETF has exposure to 500 of the top US companies, which include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META), Exxon Mobil Corporation (NYSE:XOM) and Alphabet Inc. (NASDAQ:GOOG).
1. Vanguard Total World Stock Index Fund ETF
Vanguard Total World Stock Index is one of the best Vanguard retirement funds because it gives you exposure to both the developed and emerging markets. It’s also suitable for investors looking for ETFs with low expense ratio. As of February the fund’s expense ratio was 0.07%. Some of the notable holdings of the ETF include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), NVIDIA Corporation (NASDAQ:NVDA) and Alphabet Inc. (NASDAQ:GOOG).
You can also take a peek at 20 Fastest-Growing Cities in the Southeast and 25 Best US Cities for People With Allergies.
