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What's a mutual fund?
A mutual fund is a collection of investors' money that fund managers use to invest in stocks, bonds, and other securities.
Why invest in mutual funds?
Mutual funds can be particularly suitable for investors seeking long-term, tax-deferred growth in retirement accounts.
Vanguard mutual fund options
Vanguard offers a range of mutual funds to invest in, designed to serve different investment goals and risk tolerances. Here's an overview of our 4 main types of mutual funds.
Choose from more than just Vanguard funds
Your choice, your way. Your brokerage account gives you access to a wide variety of mutual funds from hundreds of companies.
Mutual funds vs. ETFs
Mutual funds and ETFs (exchange-traded funds) are similar in many ways, but there are a few key differences that set them apart.
2 ways to open an investment account
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Get a diverse portfolio in one convenient fund
Invest according to your goals
Helpful resources
Expense ratios: What they are and why they matter
ETFs vs. mutual funds: A comparison
Buying and selling mutual funds—ours and theirs
Frequently asked questions
In order to purchase a mutual fund, you'll need to open an account if you don't have one already. When it comes to researching mutual funds, some basic things to consider are the fund's expense ratio and your target asset allocation—the combination of stocks, bonds, and cash you should hold in your portfolio.
Start with your savings goals to get an idea of how aggressive you want your investments to be based on your risk tolerance and how long you'd like your money to be invested. Then determine the best asset allocation for your goals, and select a mutual fund to help build your diversified portfolio. Once you identify your investment time horizon and your portfolio's allocation, you might also want to consider whether you want an index fund or an actively managed fund.
Index funds, also known as passively managed funds, are built to follow a market benchmark like the S&P 500 Index or Dow Jones Industrial Average. Active funds are managed by fund managers who handpick the fund's investments in an attempt to beat the market.
You’ll often see the phrase "mutual funds trade at NAV" or the word "NAV" when you research mutual funds. NAV stands for net asset value—it's the price per share that you buy the mutual fund for. The NAV is calculated at the end of the trading day.
1Vanguard average ETF and mutual fund expense ratio: 0.07%. Industry average ETF and mutual fund expense ratio: 0.44%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2024.
2For the 10-year period ended September 30, 2025, 6 of 6 Vanguard money market funds, 71 of 104 Vanguard bond funds, 21 of 23 Vanguard balanced funds, and 178 of 193 Vanguard stock funds—for a total of 276 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.
For more information about Vanguard funds, Vanguard ETFs, or non-Vanguard funds offered through Vanguard Brokerage Services, visit vanguard.com 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.
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.
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. Please review VAI’s Form CRS and each program’s advisory brochure for more information.
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.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free online) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. 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.
ESG portfolios 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 portfolios screened for ESG criteria. The index provider or advisor 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 portfolios 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 certain screens 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. 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. The weight given to ESG factors for active non-ESG funds may vary across types of investments, industries, regions and issuers; may change over time; and not every ESG factor may be identified or evaluated. Where ESG risk factor analysis is used as one part of an overall investment process (as is the case for actively managed equity and fixed income non-ESG Funds), such Funds may still invest in securities of issuers that all market participants may not view as ESG-focused or that may be viewed as having a high ESG risk profile.