ETF investing can add flexibility to your portfolio
Get more control over your investments while enjoying the same benefits as mutual funds.
What is an ETF?
The simplest definition of an exchange-traded fund, or ETF, is that it's an investment built like a mutual fund but trades like an individual stock.
The most common ETFs are designed to track the performance of a market benchmark, or "index."
An unmanaged group of securities whose overall performance is used as a standard to measure investment performance.
Enjoy the same built-in benefits of mutual funds
One fund can hold potentially hundreds—sometimes thousands—of individual stocks and bonds, which helps spread out risk.
You don't have to keep track of every single investment your ETF owns. The fund is managed by fund experts who take care of that for you.
Get more control with ETFs—at lower costs
While ETFs are in many ways the same as mutual funds, there are some features that make them unique.
ETFs offer you the same intraday pricing you get when trading stocks and bonds through a broker on a major stock exchange.
Generally, ETFs have lower operating costs—and therefore lower expense ratios—than conventional mutual funds.
ETFs typically generate less taxable income, which can translate into tax savings for you.
You can buy an ETF for as low as the cost of one share—giving you the opportunity to start investing in a diversified investment with less money.
Consider your ETF options
Find out how ETFs can fit into your overall investment strategy. You can use them to create a complete portfolio or add them to an already diversified portfolio.
Once you've chosen your ETFs, it's easy to open your account.
We're here to help
If you're new to Vanguard:
If you're already a Vanguard client:
Monday to Friday
8 a.m. to 10 p.m., Eastern time
9 a.m. to 4 p.m., Eastern time