Exchange-traded funds (ETFs)
Optimize your trading strategy with the diversification, affordability, and tax efficiency of Vanguard ETFs®.
What's an ETF?
An ETF is a collection of hundreds or thousands of stocks, bonds, or other securities, managed by experts, in a single fund that trades on major stock exchanges, like the New York Stock Exchange, Nasdaq, and Cboe. ETFs offer diversification, low costs, and the ability to trade shares live during the trading day.
4 benefits of investing in Vanguard ETFs
Competitive, long-term returns
84% of Vanguard ETFs outperformed the returns of their peer-group averages over the past 10 years.1
Lower taxes
82% of all Vanguard ETFs have had no taxable capital gains distributions in the last 5 years.2
Lower expense ratios
Our average ETF expense ratio is 83% less than the industry average.3
Better prices for your trades
99.5% of all Vanguard ETF shares bought and sold through a Vanguard account were executed at a better price than the quoted market price.4
ETF investment strategies at Vanguard
With a variety of options, you can choose ETFs that best fit your goals, values, and overall portfolio strategy.
Core ETFs
Build a fully diversified portfolio with our 4 total-market ETFs that cover nearly all aspects of the U.S. and international stock and bond markets.
ESG ETFs
Explore funds that reflect your personal preferences and consider environmental, social, and governance (ESG) issues.
Short-term ETFs
These ETFs can help you diversify your portfolio and save for short-term goals—like a down payment on a car or home.
ETFs vs. Mutual funds
ETFs (exchange-traded funds) and Mutual funds are similar in many ways, but there are a few key differences that set them apart.
ETFs
An ETF is a collection of hundreds or thousands of stocks, bonds, or other securities, managed by experts, in a single fund that trades on major stock exchanges.
- You can buy and sell ETFs throughout the trading day and get real-time pricing, just like stocks.
- Vanguard ETFs have a $1 investment minimum. Minimums for all other ETFs are set at the share price.
- ETFs are generally more tax-efficient than mutual funds.
- We offer both index and actively managed ETFs.
Mutual funds
A mutual fund is a collection of stocks, bonds, or other securities, managed by experts, in a single fund that's bought and sold at the end of each trading day based on its net asset value (NAV).
- You can place buy or sell orders for mutual funds throughout the trading day. However, these trades are processed and priced at the end of the day at NAV.
- Investment minimums can range from $1,000 to $50,000, depending on the fund.
- Mutual funds are generally less tax-efficient than ETFs.
- We offer both index and actively managed funds.
How do I invest in an ETF?
Start investing in an ETF by opening a Vanguard Brokerage Account or logging in to your existing account. Enter the ETF trade path through the Buy & sell page.
Which ETFs are good to invest in?
Every investor is unique. Use our questionnaire to find an asset mix—a combination of stocks, bonds, and short-term reserves—that fits your investment goals and risk tolerance.
2 ways to open an investment account
Do it yourself
Both industry experts and everyday people rely on our high-performing,1 low-cost mutual funds and ETFs. Choose from diverse investments to save for your financial goals.
Explore professional advice
Whatever you're working toward, we have a range of services to help you get there. Get a personalized plan and judgment-free guidance to keep you on track.
Invest according to your goals
Mutual funds
Diversify your portfolio with high-quality, low-cost Vanguard mutual funds.
Money market funds
Save for short-term goals and emergencies with a lower-risk investment.
Other investment products
Choose from a variety of products that may fit your needs.
Frequently asked questions
What's an expense ratio?
An expense ratio reflects how much an ETF pays for portfolio management, administration, marketing, and distribution, among other expenses. The lower the expense ratio, the more of the fund's earnings investors get to keep. These costs don't come out of your original investment—instead, they're deducted from the fund's total value on a regular basis.
Are ETFs tax-efficient?
ETFs can be tax-efficient. Most ETFs try to track an index, like the S&P 500. They only add and remove securities when the index does. Big moves—like when a company is completely removed from an index—happen very rarely. So you'll usually have few, if any, capital gains distributions to report at tax time.
Do ETFs pay dividends?
Yes, if you're investing in an ETF that includes stocks, bonds, or other securities that generate income, you can expect to receive dividends. Dividends are often reinvested automatically or taken as cash, depending on your preference and the terms of the ETF. Distributions are typically made on a quarterly basis, but it can vary depending on the ETF and its assets. With Vanguard ETFs, you have the option to use your dividends to automatically buy more fractional shares of the fund.
For the 10-year period ended December 31, 2025, 6 of 6 Vanguard money market funds, 72 of 104 Vanguard bond funds, 21 of 23 Vanguard balanced funds, and 176 of 193 Vanguard stock funds—for a total of 275 of 326 Vanguard funds—outperformed their peer group averages. Results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparison. (Source: LSEG Lipper.) Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.
Source: Morningstar, Inc., as of December 31, 2025.
Vanguard average ETF expense ratio: 0.04%. Industry average ETF expense ratio: 0.23%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2025.
Source: The Karn Group. Includes market orders entered from January 2024 through August 2024, during market hours with share sizes from 1 to 1,999. Excludes orders received during locked, crossed, or fast markets or during destination outages.
For more information about Vanguard mutual funds or Vanguard ETFs, obtain a
All investing is subject to risk, including the possible loss of the money you invest.
Diversification does not ensure a profit or protect against a loss.
Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.
Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
ESG funds are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider or advisor, as applicable, for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other funds screened for ESG criteria. The index provider or advisor's assessment of a company, based on the company's level of involvement in a particular industry or their own ESG criteria, may differ from that of other funds or an investor's assessment of such company. As a result, the companies deemed eligible by the index provider or advisor may not reflect the beliefs and values of any particular investor and may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the screens will depend on the index provider or advisor's proper identification and analysis of ESG data. The advisor may not be successful in assessing and identifying companies that have or will have a positive impact or support a given position. In some circumstances, companies could ultimately have a negative or no impact or support of a given position.
Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.
The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor.
VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.