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Understanding investment types

Low-cost, no-load funds are just the start

Get the most for your money: low costs, diligent fund management, and exceptional service.
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What you can expect from Vanguard no-load mutual funds

We keep your investing costs low

The average Vanguard mutual fund expense ratio is 82% less than the industry average.*

What does that mean for you? When less is taken out of your funds' earnings to cover expenses, more stays in your account—where it belongs.

See the difference low-cost mutual funds can make

See how Admiral™ Shares help keep your costs under control

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We have a track record of competitive long-term performance

89% of Vanguard no-load mutual funds performed better than their peer-group averages over the past 10 years.**

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We hire top mutual fund managers

If you're looking for index funds, look no further. As the company that launched the first index fund for individual investors, we have expert fund managers with decades of experience. Our Equity Investment and Fixed Income Groups have the experience and expertise you'd expect from the company that pioneered index investing.

See how Vanguard index funds stand above the rest

You can also check out our wide selection of actively managed funds. We complement our in-house teams with portfolio managers from around the world, who embrace our values and long-term perspective. These managers are rigorously selected for their experience, expertise, and data-driven processes that promote sound decision-making.

Find out if actively managed funds could help you beat the market

Earnings

Revenue for a specified period of time, after related costs and expenses have been deducted.

No-load mutual fund

A fund that charges no sales fees either on the front end (when you buy fund shares) or back end (when you sell fund shares).

Index funds

A type of mutual fund that seeks to track the performance of a particular market index by buying and holding all or a representative sample of the securities in the index, in the same proportions as their weightings in the index.

Actively managed fund

A fund that seeks to outperform the average returns of a particular market index (sometimes referred to as a "benchmark"). Active managers rely on research, market forecasts, and their own judgment and experience in selecting securities to buy and sell.

Portfolio

All the securities held by a mutual fund or the total investment holdings of an individual or an institution.

ETF (exchange-traded fund)

An investment with characteristics of both mutual funds and individual stocks. Many ETFs track an index, a commodity, or a basket of assets. Unlike mutual funds, ETFs can be traded throughout the day. ETFs often have lower expense ratios but must be purchased and sold through a broker, which means you may incur commissions.

Stock

A security that represents part ownership, or equity, in a corporation. Each share of stock is a proportional stake in the corporation's assets and profits, some of which could be paid out as dividends.

Bond

A debt security (IOU) issued by a corporation, government, or government agency in exchange for the money the bondholder lends it. In most instances, the issuer agrees to pay back the loan by a specific date and make regular interest payments until that date.

Certificate of Deposit (CD)

An insured, interest-bearing deposit at a bank that requires the depositor to keep the money invested for a specific period of time. CDs can be traded on the secondary market.

What you can expect every day as a Vanguard client

The help you need, when you need it

Whether you're handling day-to-day account management tasks or taking an in-depth look at your portfolio, you can count on the high-quality service you'd expect from an industry leader.

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Opportunities for higher levels of personal attention

As your account grows, you can look forward to decreasing costs and increasing levels of personalization and advice.

See what you get as a Voyager or Flagship Services client
 

All the investment flexibility you want

Interested in expanding your portfolio beyond Vanguard mutual funds? With a Vanguard Brokerage Account, you can choose from more than 60 Vanguard ETFs® (exchange-traded funds), gain access to thousands of non-Vanguard mutual funds and ETFs, or complement your portfolio with individual stocks, bonds, and certificates of deposit (CDs).

Experience the Vanguard ETF® advantage

Explore all your investment choices available through Vanguard

Paying too much for other funds?

Compare a non-Vanguard fund with a similar Vanguard fund

Want to learn more?

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For more information about Vanguard mutual funds and ETFs, visit Vanguard mutual fund prospectuses or Vanguard ETF prospectuses to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

*Vanguard average mutual fund expense ratio: 0.09%. Industry average mutual fund expense ratio: 0.50%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.

**For the 10-year period ended December 31, 2023, 6 of 6 Vanguard money market funds, 70 of 83 Vanguard bond funds, 21 of 23 Vanguard balanced funds, and 124 of 136 Vanguard stock funds—for a total of 221 of 248 Vanguard funds—outperformed their Lipper peer-group averages. Results will vary for other time periods. Only mutual funds with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free online) or through another broker (who may charge commissions). See the Vanguard Brokerage Services Commission and Fee Schedules for limits. Vanguard ETF Shares are not redeemable directly with the issuing Fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

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.