I enjoy writing about high-risk, high-reward growth stocks, but here's the truth: The lion's share of my portfolio is invested in relatively conservative Vanguard exchange-traded funds (ETFs).
Vanguard has earned its reputation as the ETF provider of choice for most investors, largely due to its structure. The company operates under a mutual ownership model where fund shareholders own the funds, which in turn own Vanguard itself.
Without external shareholders demanding profits, Vanguard runs at cost and passes savings directly to investors. The result is an average expense ratio of just 0.07%, compared to an industry average above 0.40%. Over the course of decades, that difference translates into tens of thousands of dollars staying in your pocket.
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Add in one of the deepest lineups of passively managed index funds available -- covering everything from total market exposure to international markets and niche sectors -- and it's easy to see why Vanguard manages over $8 trillion in assets.
Here are three Vanguard ETFs I'd buy right now.
1. Dividends from around the world
Vanguard International High Dividend Yield ETF (VYMI +0.92%) targets high-yielding stocks in developed and emerging markets outside the United States. The fund tracks companies forecast to pay above-average dividends over the next 12 months, creating a portfolio tilted toward financials, consumer staples, and energy.
NASDAQ: VYMI
Key Data Points
The Vanguard International High Dividend Yield ETF charges an expense ratio of 0.17% with a 30-day SEC yield of approximately 4%. For income-focused investors, this fund offers something the U.S. market increasingly lacks -- meaningful yield without reaching into riskier corners of the market. With over 1,500 holdings spanning Europe, Asia, and emerging markets, it also provides geographic diversification at a time when U.S. stocks dominate most portfolios.
2. The stealth artificial intelligence fund
Vanguard Information Technology ETF (VGT +1.04%) has quietly become one of the best ways to ride the artificial intelligence (AI) wave without stock-picking risk. The fund's top three holdings -- Nvidia, Apple, and Microsoft -- account for roughly 45% of assets, putting investors at the center of the AI infrastructure buildout.
NYSEMKT: VGT
Key Data Points
The Vanguard Information Technology ETF charges an annual fee of just 0.09%, with a 30-day SEC yield of 0.42%. The portfolio spans over 300 companies across semiconductors, software, and IT services, capturing both the giants driving AI adoption and smaller innovators positioned to benefit. For investors who believe technology will continue to reshape the global economy, this fund offers concentrated exposure at a fraction of the cost of actively managed tech funds.
3. Small and cheap beats big and expensive
Vanguard Small-Cap Value ETF (VBR +0.60%) occupies the opposite corner of the market from megacap tech -- and that's precisely the point. The fund tracks small U.S. companies trading at depressed valuations, the types of stocks that institutional investors often overlook but have historically delivered strong long-term returns.
NYSEMKT: VBR
Key Data Points
The Vanguard Small-Cap Value ETF charges a razor-thin 0.07% expense ratio with a 30-day SEC yield of 2.03%. The portfolio holds over 800 stocks with no single position exceeding 1% of assets, providing extreme diversification within the small-cap value universe.
Top sectors include financials and industrials -- economically sensitive businesses that tend to thrive when growth accelerates. Small-cap value has underperformed large-cap growth for years, making this a contrarian play on mean reversion.
The case for boring
These three funds won't generate cocktail party excitement. But combined, they offer international income, domestic growth, and contrarian value exposure -- three distinct return drivers that complement each other across market cycles. Add Vanguard's structural cost advantage, and you have a framework for building wealth that's genuinely hard to beat.
Sometimes boring is exactly what your portfolio needs.
