10 Super-Cheap Vanguard ETFs for Investors

editor@etftrends.com (ETF Trends)
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ETF adoption has rapidly accelerated in recent years, with many investors steering to cheap ETFs to potentially bolster long-term investment returns. There are 2,040 U.S.-listed ETFs on the market with an average expense ratio of 0.59%, according to XTF data. Among the forerunners of cheap ETF options, Vanguard Group has been among the beneficiaries of the recent surge in popularity of low-cost investment options and is now the second largest ETF provider in the U.S. Vanguard has 70 U.S.-listed ETFs with $784.8 billion in assets under management and an average 0.11% expense ratio. "One of the benefits of our unique client-owned structure is that it allows us to return profits to our fund shareholders in the form of lower expense ratios, and we’ve been doing just that for more than 40 years," Bill McNabb, chairman and chief executive officer of Vanguard, said in a note. "I’m humbled to say that we’ve become so synonymous with driving down costs that when other investment companies lower their fees, the financial press often refers to it as the 'Vanguard Effect.'" Related: What’s Next for Vanguard ETFs? Investors are increasingly looking to cheap options, no matter the investment environment. Cheap index-based ETFs have been the go-to choice among long-term investors through rain or shine. Despite increased anxiety through volatile periods like the financial downturn, many long-term investors did not engage in panicked trading but opted stay the course. "Performance-chasing and market-timing won’t be any more effective with low-cost funds versus high-cost funds," McNabb said. While low costs help, a cheap ETF option is not all there is to investing. "Whether markets are sunny or stormy, the keys to achieving success endure: Stick to your investment plan, maintain a balanced and diversified portfolio, and think long-term. We strive to help investors follow these principles and reach their goals," McNabb said. Investors interested in cheap, broad market options may look to the Vanguard ETF line, including:

  • Vanguard Total Stock Market Index ETF (VTI) 0.04% expense ratio

  • Vanguard 500 Index (VOO) 0.04% expense ratio

  • Vanguard Total Bond Market ETF (BND) 0.05% expense ratio

  • Vanguard Large Cap (NYSEArca: VV) 0.06% expense ratio

  • Vanguard Growth ETF (VUG) 0.06% expense ratio

  • Vanguard Value ETF (VTV) 0.06% expense ratio

  • Vanguard Mid-Cap ETF (VO) 0.06% expense ratio

  • Vanguard Small Cap ETF (VB) 0.06% expense ratio

  • Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) 0.07% expense ratio

  • Vanguard Mid-Cap Growth ETF (VOT) 0.07% expense ratio

For more information on ETFs, visit our ETF 101 category . Read more on ETFtrends.com

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