One of these ETFs is focused on companies based outside the U.S., and it can diversify your portfolio.
One offers the potential of great growth and a great growth track record.
One seeks a margin of safety by focusing on big, undervalued companies.
Vanguard was founded by John Bogle in 1975 with an investor-friendly approach that was unique at the time: low fees and access to broad swaths of the market through index funds. Vanguard is not publicly traded -- instead, it's owned by its investors. (Technically, it's owned by its funds, which are owned by their shareholders.)
It makes a lot of sense, then, to consider Vanguard funds when you're looking to deploy your long-term dollars. I'd suggest focusing on its exchange-traded funds (ETFs) in particular -- they're funds that trade like stocks. Here are three solid ones to consider.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The Vanguard Total International Stock Index Fund ETF (NASDAQ: VXUS) is a particularly good ETF to consider if you're worried about the U.S. economy slowing down -- perhaps due to rising inflation, leading the Federal Reserve to hike interest rates. It's focused on most of the stocks in the world, except for U.S.-based ones, and its holdings recently numbered 8,770.
Its expense ratio (i.e., annual fee) is a puny 0.05%, meaning that for every $10,000 you have invested in the fund, you'll be charged $5. It also offers a meaningful dividend, recently yielding 2.7%.
Here's how the ETF has performed in recent years:
|
Time period |
Annualized return |
|---|---|
|
Past 1 year |
33.04% |
|
Past 3 years |
19.99% |
|
Past 5 years |
8.60% |
|
Past 10 years |
9.91% |
|
Past 15 years |
6.77% |
Data source: Morningstar.com as of June 1, 2026.
The ETF's top holdings recently included Taiwan Semiconductor Manufacturing, Samsung Electronics, and ASML Holding. Investing in this ETF can have you profiting from tech stocks and other stocks based outside the U.S., insulating your portfolio to some degree from the U.S. economy. (Remember, though, that we live in a very global economy now, with our fortunes to some degree intertwined with those of other countries.)
The Vanguard Information Technology Index Fund ETF (NYSEMKT: VGT) is for those who are not worried about a U.S. slowdown, as it's focused on U.S.-based companies in the information technology sector -- one that's been on fire in recent years. Check out its performance record:
|
Time period |
Annualized return |
|---|---|
|
Past 1 year |
64.55% |
|
Past 3 years |
33.89% |
|
Past 5 years |
22.62% |
|
Past 10 years |
25.76% |
|
Past 15 years |
21.32% |
Data source: Morningstar.com as of June 1, 2026.
This is not a fund for dividend seekers, as the recent yield was only 0.3%, but it tends to make up for that via robust returns. Indeed, the table above might leave you breathless. Before you jump into it, though, understand that it's chock-full of growth stocks, many of which can be overvalued. Whenever the market pulls back, such stocks tend to fall especially hard. That's not necessarily a problem if you can stomach volatility and you aim to hang on for many years, but the ETF may not be best for the faint-hearted.
Its top holdings (out of about 316) recently included Nvidia, Apple, and Microsoft. Its expense ratio is 0.09%, which is still very low.
If you anticipate further torrid growth in artificial intelligence (AI), data centers, cloud computing, cybersecurity, and other fast-growing technologies, investing in this ETF will spread your money across several hundred companies involved in these sectors.
Finally, consider the Vanguard Mega Cap Value Index Fund ETF (NYSEMKT: MGV). It's another index fund focused on extra-large companies that appear undervalued. The top holdings out of its 120-some companies recently included JPMorgan Chase, Berkshire Hathaway, and ExxonMobil.
Value stocks will often hold up better in market downturns, so this ETF may protect your assets more than growth-stock-focused ETFs -- because its holdings' stock prices offer a margin of safety.
The ETF's expense ratio is 0.05%, and it recently sported a dividend yield of 1.9%. Here's how it has performed in recent years:
|
Time period |
Annualized return |
|---|---|
|
Past 1 year |
26.63% |
|
Past 3 years |
19.21% |
|
Past 5 years |
11.92% |
|
Past 10 years |
12.69% |
|
Past 15 years |
12.26% |
Data source: Morningstar.com as of June 1, 2026.
Those are quite respectable returns from a fund that doesn't feature many market darlings among its top holdings. It has likely done well because the kinds of companies it invests in are ones that have done a lot of things right -- so much so that they grew to enormous size. In other words, they're proven and established.
Whether you invest in one or more of these Vanguard ETFs or in some other promising ETFs, do consider parking some of your assets in well-run, low-fee ETFs.
Before you buy stock in Vanguard Total International Stock ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Total International Stock ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 4, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Selena Maranjian has positions in ASML, Apple, Berkshire Hathaway, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.