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Thrifty investors can benefit from both low expenses and broad diversification by exploring some of Vanguard’s top index funds tailored for beginners.

Index funds have been one of the primary drivers of lower-cost investing over the past couple decades. These rules-based investing vehicles are largely run by algorithm, not an expensive team of managers, allowing investors to easily access dozens or hundreds of stocks, bonds, and other assets at a time—all without breaking the bank.

You can thank The Vanguard Group for that. In 1976, Vanguard founder John Bogle launched the Vanguard First Index Investment Trust—the first U.S. index fund that everyday investors could access. Ever since, Vanguard has been one of the leading names in not just low-cost index investing, but low-cost funds in general.

Today, though, we’re going to show you how to pair index investing and Vanguard’s inexpensive lineup to build an extremely cost-efficient starter portfolio.

Read on as we examine some of the best Vanguard index funds for beginners in 2025. These products will cover numerous investing strategies, so there should be at least one fund for virtually every type of investor—though most people would likely combine several of these to build the base of their portfolio. We’ll also introduce you to index investing and The Vanguard Group, and answer a few frequently asked questions.

Disclaimer: This article does not constitute individualized investment advice. These funds appear for your consideration and not as investment recommendations. Act at your own discretion.

Editor’s Note: Tabular information presented in this article are up-to-date as of Jan. 28, 2025.

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Why Vanguard?


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Vanguard Group is a leader in index funds. Vanguard founder Jack Bogle launched the first Vanguard index fund for U.S. retail investors—the Vanguard First Index Investment Trust, which is now the Vanguard 500 Index Fund Admiral Shares (VFIAX)—in 1976. And in the four-and-a-half decades that have followed, Vanguard Funds have grown to become the dominant force in index investing.

Today, this former upstart mutual fund company has more than $9.0 trillion in assets under management with an average expense ratio of just 0.08%, or a mere 80¢ for every $1,000 invested. There are currently ~425 Vanguard funds, including mutual funds and ETFs. And Vanguard index funds cover every conceivable pocket of the investable universe, including individual sector funds and emerging markets.

Vanguard grew into the powerhouse mutual fund company it is today by taking care of its clients and genuinely looking after their interests. Vanguard funds really started and continue to accelerate the trend of fee compression. We all collectively pay less in fees and expenses and enjoy better returns because of the index revolution started and led by Vanguard’s founder Jack Bogle.

Today, we’re going to take a look at the very best Vanguard index funds for beginners. They run the gamut in terms of styles and strategies, but all of the best Vanguard funds share one thing in common: They all have rock-bottom fees.

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The 7 Top Beginner-Friendly Index Funds From Vanguard


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It’s not particularly easy to narrow down the universe of Vanguard funds to just seven of the very best Vanguard index funds. And this list shouldn’t be considered a comprehensive portfolio.

But you can absolutely use these to build a starter portfolio. For the beginning investor, this particular mix of Vanguard funds covers the major bases, giving you exposure to U.S. stocks, stocks in developed and emerging markets, and government and corporate bonds.

This list is also heavy in what are called “Admiral Shares,” which is a popular Vanguard share class. Admiral Shares generally have a slightly higher investment minimum but a lower expense ratio. However, if the investment minimums are difficult for you to meet, good news: You can probably buy it as an ETF, which you can buy for as little as one share, and we’ll let you know when that’s the case.

With that said, let’s jump into it.

Best Large-Cap Fund: Vanguard 500 Index Fund Admiral Shares


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— Style: U.S. large-cap stock

— Assets under management: $1.4 trillion*

— Dividend yield: 1.2%

— Expense ratio: 0.04%, or 40¢ per year for every $1,000 invested

— Minimum initial investment: $3,000

Remember when I said Vanguard founder Jack Bogle created the first index fund? That fund, first called the First Index Investment Trust, was shortly thereafter rebranded as the Vanguard 500 Index Fund Admiral Shares (VFIAX)—a fund that’s not only still around today, but one of the largest funds, at more than a trillion dollars in assets across its various share classes. (The assets under management figure shown above specifically represents their Admiral Shares mutual fund class.)

VFIAX tracks the S&P 500 Index—a well-diversified benchmark that has simply given mutual fund managers fits for decades. The majority of fund managers who run large-cap funds (funds that invest in larger companies) struggle to consistently beat the S&P 500 Index, particularly after fees. According to S&P Dow Jones Indices, through mid-year 2024, “57% of all active large-cap U.S. equity funds underperformed the S&P 500.” That’s no anomaly: A majority of active managers have now failed to beat the S&P 500 in 21 of the past 24 years.

My advice: If you can’t beat it, join it.

Related: 10 Best Vanguard Funds to Buy

The Vanguard 500 Index Fund Admiral Shares, by virtue of tracking the S&P 500, holds shares of 500 large, dominant U.S. companies. But it doesn’t hold them equally. The S&P 500 is “market-cap weighted,” which means the larger the company, the more weight the stock has in the index (and thus the more impact it has on returns). Thus, right now, VFIAX dedicates the largest portions of its assets to companies like Apple (AAPL), Nvidia (NVDA), and Microsoft (MSFT), whose market caps are measured in trillions of dollars. It’s also considered to be a “blend” fund, which means it has relatively even exposure to value stocks and growth stocks.

Financial experts frequently suggest using an S&P 500 fund as the core of your portfolio given its exposure to hundreds of larger, more financially stable companies across all sectors—from tech to health care to real estate. Because of this diversity of holdings, the S&P 500 not only provides access to the growth of the American economy, but a modest level of dividend income, too. VFIAX’s yield might not seem like much right now. However, reinvested over time, the S&P 500’s dividends make up roughly 35% to 50% of the index’s returns over the very long term (depending on the time period and study you’re looking at).

Also, as I mentioned before, most Vanguard index mutual funds have an ETF share class. Here, VFIAX’s sister Vanguard ETF is the Vanguard S&P 500 ETF (VOO), which charges 0.03% annually.

Related: Best Vanguard Retirement Funds for a 401(k) Plan

* Many Vanguard funds have multiple share classes, including ETFs. Listed net assets for Vanguard funds in this story refer to assets under management across all of a given fund’s share classes.

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Best Dividend Fund: Vanguard High Dividend Yield Index Fund Admiral Shares


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— Style: U.S. large-cap dividend stock

— Assets under management: $76.5 billion

— Dividend yield: 2.7%

— Expense ratio: 0.08%, or 80¢ per year for every $1,000 invested

— Minimum initial investment: $3,000

Investors who want a higher level of income than what the S&P 500 provides, but still want to enjoy stocks’ growth potential, can do so for a song by purchasing the Vanguard High Dividend Yield Index Fund Admiral Shares (VHYAX).

The name says it all. This Vanguard index mutual fund is constructed to deliver a high dividend yield, which it does by tracking an index of stocks that pay higher-than-average dividends. The result is a fairly conservative, largely blue-chip portfolio of roughly 530 stocks weighted by market cap.

“Vanguard High Dividend Yield strikes a balance between higher yield and the inherent risks,” says Morningstar Analyst Bryan Armour. “Weighting stocks by market cap steers the fund toward more stable, large-cap stocks and away from those whose dividends may be distressed.”

Interestingly, while VHYAX does provide decent exposure to sectors defined by their defensive nature and higher-than-average dividends, such as health care (11%) and consumer staples (11%), its biggest sector allocation is to financials, which currently command more than 20% of assets. Top holdings are a who’s who of mega-cap dividend payers, including JPMorgan Chase (JPM), Johnson & Johnson (JNJ), and Exxon Mobil (XOM). The end result is exactly what the fund aims for: a nearly 3% yield that’s roughly twice what the S&P 500 delivers.

However, understand that if you invest in Vanguard High Dividend Yield Index, you won’t be invested in the real estate sector. That’s because VHYAX’s underlying index explicitly excludes real estate investment trusts (REITs)—a group of stocks we’ll get into later. 

It seems like an odd exclusion, if only because REITs tend to be one of the market’s highest-yielding sectors. One possible explanation? Most common stocks, like those held in this Vanguard fund, pay qualified dividends, which enjoy favorable tax treatment at the long-term capital gains tax rate. Most REIT dividends, however, are non-qualified, which are taxed as ordinary income at federal income tax rates. By excluding REITs, VHYAX can pay out 100% qualified dividend income, helping shareholders avoid a potential tax headache.

VHYAX is also offered in ETF form: the Vanguard High Dividend Yield ETF (VYM), which costs 0.06% annually.

Related: 10 Best Fidelity Funds to Buy

Best Dividend Growth Fund: Vanguard Dividend Appreciation Index Fund Admiral Shares


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— Style: U.S. large-cap dividend stock

— Assets under management: $106.0 billion

— Dividend yield: 1.7%

— Expense ratio: 0.08%, or 80¢ per year for every $1,000 invested

— Minimum initial investment: $3,000

You should never buy a mutual fund without looking under the hood, but that goes doubly so for dividend funds, where the word “dividend” in the name doesn’t necessarily mean you’re collecting a fat yield.

Take Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) and its sub-2% yield, for instance.

Related: 7 Best High-Quality, High-Yield Dividend Stocks to Buy

This Vanguard index fund targets U.S. companies that consistently increase their cash distributions over time. Its underlying index is made up of firms that have improved their payouts on an annual basis for at least 10 consecutive years. High yield isn’t a priority. In fact, VDADX’s underlying index actually implies that high current yields are a liability, as it excludes the 25% highest-yielding eligible companies.

Why? Well … without getting too far into the weeds, high dividends can sometimes be the result of significant price drops, and in some cases might not be sustainable.

That said, VDADX’s different view on dividends produces two important potential benefits:

1. High quality: Only firms with strong financials and excellent cash flows can afford to keep paying shareholders more every year. So, in a way, VDADX’s commitment to dividend growers acts like a quality screen, ensuring you’re owning a higher grade of stock.

2. Higher yield on cost over time: These companies might not yield much right now, but if they continue raising their dividends, you should enjoy a higher “yield on cost”—what you’re actually earning based on the price at which you bought an investment. (Example: A $100 stock paying $1 in annual dividends yields 1% [$1 / $100 = 1%]. But if you bought the stock at $50 a couple of years ago, your yield on cost is actually 2% [$1 / $50 = 2%] … plus you enjoyed a 100% price gain along the way.)

VDADX holds roughly 340 predominantly large-cap stocks with bulletproof balance sheets and the ability to churn out cash—which they increasingly fork over to shareholders in the form of dividends. All of them have raised their payouts for at least 10 years, but some have much longer histories of uninterrupted dividend growth. Procter & Gamble (PG) and Johnson & Johnson, for instance, are Dividend Kings, which are stocks that have raised their dividends annually for at least 50 consecutive years.

I mentioned above that all the Vanguard index funds on this list have relatively low expenses. VDADX is a great example. The average fee on large-cap funds like this is 0.69%, according to Morningstar. But Vanguard Dividend Appreciation charges a mere 0.08%. Fees are even lower for VDADX’s ETF class, Vanguard Dividend Appreciation ETF (VIG), which charges 0.06%.

Related: The 7 Best Dividend ETFs [Get Income + Diversify]

Best ESG Fund: Vanguard ESG U.S. Stock ETF


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— Type: U.S. small-cap stock

— Assets under management: $10.2 billion

— Expense ratio: 0.09%, or 90¢ per year for every $1,000 invested

— Dividend yield: 1.1%

— Minimum initial investment: N/A*

As a general rule, it’s probably better to keep your political views separate from your investment decisions. Politics tends to be emotional, and it’s generally best to strip out your emotions when investing and stick with the numbers.

That said, many investors feel strongly that investing should be ethical, and they have serious moral qualms about investing in certain industries or in companies with questionable labor practices or corporate governance. Furthermore, studies have found that companies with strong corporate governance structures in place tend to outperform, and companies with good labor relations tend to do a better job of avoiding costly strikes or work stoppages.

For investors wanting to feel good about their investments, the Vanguard ESG U.S. Stock ETF (ESGV) is a solid option.

Related: The 7 Best Dividend ETFs [Get Income + Diversify]

This Vanguard ETF seeks to track the performance of the FTSE US All Cap Choice Index, a market-cap-weighted index screened for environmental, social, and corporate governance (ESG) criteria. The index excludes stocks of companies related to adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas. It also excludes stocks of companies that do not meet certain labor, human rights, environmental, and anti-corruption standards as defined by the UN Global Compact Principles and companies that do not meet certain diversity criteria.

The resulting portfolio is nearly 1,500 qualifying stocks, which you can get for a low 0.09% in annual fees.

* As an ETF, ESGV has no minimum initial investment. You can buy as little as one share (or a fraction of a share if your brokerage supports fractional shares).

Related: Best Vanguard Retirement Funds for an IRA

Best International Developed Markets Fund: Vanguard Developed Markets Index Fund Admiral Shares


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— Type: Developed markets large-cap stocks

— Assets under management: $28.2 billion

— Expense ratio: 0.07%, or 70¢ per year for every $1,000 invested

— Dividend yield: 3.0%

— Minimum initial investment: $3,000

The United States is the world’s largest economy and home to many of the world’s most innovative and profitable companies. And American investors have expenses denominated in U.S. dollars. So, it only makes sense to keep the bulk of your investments in U.S. assets.

That said, opportunities abound in developed (established, slower-growing) and emerging (less stable but faster-growing) markets as well, and there can be multi-year stretches in which non-U.S. stocks massively outperform their American peers. This was certainly the case from 2000-08, the last major bull market in overseas shares.

Related: 12 Best Long-Term Stocks to Buy and Hold Forever

For index exposure to the world’s major developed foreign markets, consider the Vanguard Developed Markets Index Fund Admiral Shares (VTMGX). The fund tracks the performance of the FTSE Developed All Cap ex US Index, a market-cap-weighted index that is made up of approximately 4,000 common stocks of large- mid-, and small-cap stocks located in Europe, Canada, and the Pacific region. Approximately 54% of the fund is invested in European shares, 36% in Asia and the Pacific Rim, and 10% in North America.

VTMGX pays an attractive dividend yield of 3.0% and has an expense ratio of just 0.07%.

If the $3,000 investment minimum is a little on the high side for you, consider the Vanguard FTSE Developed Markets ETF (VEA). It tracks the same index, charges just 0.05%, and a single share can be bought for a little over $50 as of this writing.

Related: Best Fidelity Retirement Funds for a 401(k) Plan

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested’s free retirement planning newsletter.

Best International Emerging Markets Fund: Vanguard Emerging Markets Stock Index Fund Admiral Shares


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— Type: International large-cap stocks

— Assets under management: $16.6 billion

— Expense ratio: 0.14%, or $1.40 per year for every $1,000 invested

— Dividend yield: 2.6%

— Minimum initial investment: $3,000

The United States is still the world’s idea factory, but it is also already a developed country with high living standards. The same is true of Canada, Japan, and much of Europe. In a developed country, annual economic growth of 3% to 4% is a cause for celebration.

But it’s a much different story in emerging markets. Because they are starting at lower levels of development, it’s possible for them to grow significantly faster than their developed-world peers. Economic growth in excess of 8% or even 10% is not uncommon during booms.

Related: 5 Best Money Market Funds [Protect Your Savings]

For broad index exposure to emerging markets, consider the Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). The Vanguard fund tracks the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, a market-cap-weighted index that is made up of more than 5,700 common stocks of companies located in emerging markets around the world. Despite the index having “China” in its name, the fund has less than a third of its assets in Chinese securities. It also has large exposure to India, Taiwan, Brazil, and a host of other developing countries.

Related: The 7 Best Mutual Funds for Beginners

Emerging markets have really struggled over the past decade, and the COVID pandemic didn’t help. And tightening monetary policy from the Federal Reserve and other major central banks also tends to hit emerging markets particularly hard. So, you might want to start small when investing in emerging markets, then gradually build your position over time. But if you believe in the long-term growth prospects of the developing world, it certainly makes sense to have exposure here.

As with most Vanguard Admiral shares, the Vanguard emerging market fund has a $3,000 minimum investment. If this is too steep for you, consider the Vanguard FTSE Emerging Markets ETF (VWO). It runs the same portfolio, has an even cheaper 0.08% expense ratio, and shares trade for around $50. 

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Best Bond Fund: Vanguard Short-Term Bond Index Fund Admiral Shares


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— Type: U.S. short-term bonds

— Assets under management: $12.2 billion

— Expense ratio: 0.07%, or 70¢ per year for every $1,000 invested

— SEC yield: 4.4%*

— Minimum initial investment: $3,000

2022 and 2023 were volatile years in the stock market, but they were also turbulent for long-term bonds. Bonds that mature in 20 to 30 years actually saw greater price declines than the S&P 500!

So if you are looking to earn a competitive yield while keeping your portfolio safe from wild price swings, consider the Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX), a diversified bond index fund including both government and corporate bonds.

The Vanguard Short-Term Bond Index Fund attempts to track the performance of the Bloomberg U.S. 1-5 Year Government/Credit Float Adjusted Index. Now, this fund doesn’t hold all of the bonds in the benchmark—instead, it uses “sampling” to hold fewer bonds while still closely matching index characteristics such as sector weight, maturity, coupon, and credit quality. Even then, this is a very diversified portfolio of roughly 2,650 bonds (versus the benchmark’s 3,500 or so).

Related: 5 Best Money Market Funds [Protect Your Savings]

Currently, this Vanguard index fund invests about 66% of assets in U.S. government bonds, and most of the rest in corporate bonds. Given the relatively short duration of the bonds in the portfolio, the fund’s risk to rising interest rates is low. (Duration is a measure of bond risk. VBIRX’s duration of 2.6 years implies that a 1-percentage-point rise in interest rates would mean a short-term capital loss of about 2.6% for the fund. And vice versa: A 1-point rise should result in a 2.6% gain for VBIRX.)

Like the other Vanguard funds on the list, VBIRX has a $3,000 minimum initial investment. If this is an issue, the same strategy can be followed via the Vanguard Short-Term Bond ETF (BSV), which charges 0.04% annually and trades for around $77 per share.

* An SEC yield reflects the interest earned across the most recent 30-day period. This is a standard measure for funds holding bonds and preferred stocks.

Related: 11 Best Non-Stock Investments [Alternatives to the Stock Market]

What Is an Index Fund?


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Most investors own index funds, whether they realize it or not. They are the dominant investment vehicle in most retirement plans these days, and with good reason: Low-cost index funds generally perform as well or better than most actively managed funds.

And naturally, Vanguard Group—which launched the very first index fund for U.S. retail investors more than 40 years ago—is a leader in index funds. If your workplace offers a 401(k) plan, it likely offers some of the best Vanguard index funds; if you have a brokerage account, you certainly have access to these products.

But if you’re new to investing, you need to understand what index funds do. So first, let’s look under the hood to see what makes the best index funds tick.

The best way to explain index funds is to compare them to their cousins: actively managed funds.

What Are Actively Managed Funds?

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Actively managed funds are run by one or more fund managers, who collect money from investors, then allocate that money to stocks, bonds, or other assets. With active funds, the managers are often tasked with beating some sort of benchmark index, but they’ll generally have a lot of discretion as to what they can buy and sell to accomplish that.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested’s free retirement planning newsletter.

How Do Actively Managed Funds Compare to Index Funds?

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Index funds, in contrast, are passive. The fund manager isn’t actively looking to “beat the market” or “beat an index.” They’re simply looking to mimic a stock market index—like, say, the S&P 500—enjoying that underlying investment exposure. (Indeed, one of the best Vanguard index funds is its core S&P 500 offering.)

Let’s use the S&P 500 as an example. The S&P 500 holds the stocks of 500 companies, but it doesn’t hold equal amounts of each—it “weights” each stock by size. The larger the market capitalization (stock price times number of shares outstanding), the larger the percentage of the index is allocated to that stock. As I write this, the S&P 500 gives tech stocks Apple (AAPL) and Microsoft (MSFT) 7.6% and 6.3% weights, respectively. So an index fund mimicking the S&P 500 should dedicate 7.6% of its assets to AAPL, and 6.3% to MSFT.

Related: Best Tech Stocks for 2025

Is There An Advantage to Using Actively Managed Funds?

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The primary advantage of actively managed funds is that a talented manager can potentially outperform over time and might be adept at navigating a difficult period such as a bear market. But you pay for that possibility in the form of higher fees and often worse tax efficiency.

With index investing, you generally get much lower costs in terms of management fees and trading expenses, better tax efficiency, and performance that often ends up being better than that of many active managers.

Related: 13 Best Long-Term Stocks to Buy and Hold Forever

If you believe the stock market will generally rise over time, an index fund is the easiest and most direct way to get exposure.

What are Vanguard Target Retirement Funds?


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If you are new to investing and looking for a simple, hands-off way to get started, a Vanguard Target Retirement Fund could be a good option.

Investing in mutual funds isn’t difficult, but it does require your attention. You should regularly check your allocation to make sure that the risk you’re taking is appropriate for your age and stage of life. You generally don’t want to be too heavy in stocks later in life, as you won’t have time to recover any potential losses. And you generally don’t want to be too heavy in bonds early in your career because you’re unlikely to keep pace with inflation. Ideally, you follow a glidepath from a more aggressive to a more conservative portfolio over the course of your investing life.

Related: Beginner’s Guide to Schwab Target-Date Funds

Well, Vanguard Target Retirement Funds do that for you, making them particularly good options for beginners.

Target-date funds start out by compiling their holdings with a specific retirement date in mind, then they adjust the asset allocation as we get closer to that date. A target-date fund with decades until the retirement date will generally be heavy in stocks, whereas a target-date fund very close to its retirement year will generally be a moderate balance of stocks and bonds.

Let’s say you’re 23 years old, fresh out of school, and looking to retire around the age of 70. You’d hit that age in the year 2070, which would make the Vanguard Target Retirement 2070 Fund (VSVNX) an appropriate option. But let’s say you’re 43. You’ll likely be retiring around the year 2050, so rather than buy VSVNX, you might instead opt for its sister fund, the Vanguard Target Retirement 2050 Fund (VFIFX).

You don’t have to get the year exactly right here, as we don’t necessarily know decades ahead of time the precise day and time we intend to retire. Being within a three- to five-year window will generally get you close enough. The key is simply to find a target-date fund that aligns fairly closely to your expected retirement date and allow the glidepath to do the work for you. My suggestion: Check out our review of Vanguard’s full line of target-date funds to make sure you get both the right date and the right fund type for you.

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Why Does a Fund’s Expense Ratio Matter So Much?

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Every dollar you pay in expenses is a dollar that comes directly out of your returns. So, it is absolutely in your best interests to keep your expense ratios to an absolute minimum.

The expense ratio is the percentage of your investment lost each year to management fees, trading expenses and other fund expenses. Because index funds are passively managed and don’t have large staffs of portfolio managers and analysts to pay, they tend to have some of the lowest expense ratios of all mutual funds.

Related: The 7 Best Index Funds for Beginners

This matters because every dollar not lost to expenses is a dollar that is available to grow and compound. And over an investing lifetime, even a half a percent can have a huge impact. If you invest just $1,000 in a fund generating 5% per year after fees, over a 30-year horizon, it will grow to $4,116. However, if you invested $1,000 in the same fund, but it had an additional 50 basis points in fees (so it only generated 4.5% per year in returns), it would grow to only $3,584 over the same period.

What is the Minimum Investment Amount on a Vanguard Fund?

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Vanguard funds are known for being shareholder-friendly. The Vanguard mutual fund company blazed new trails with the index fund, and Vanguard has done more than any other investment firm to keep costs to a minimum for investors.

But there is one hitch. Many of Vanguard’s cheapest funds in terms of fees have initial investment minimums of around $3,000.

If that is a problem for you, don’t sweat it. Most popular Vanguard index funds are also available as ETFs. Most brokers will allow you to buy as little as one share, and some even allow for fractional shares. And if you use a commission-free brokerage, you can buy those ETFs without incurring additional fees.

ETF prices vary, of course, but many cost less than $100, and they rarely exceed $400 per share.

Related: 7 Best Vanguard Dividend Funds [Low-Cost Income]

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Related: 7 Best High-Quality, High-Yield Dividend Stocks to Buy

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Looking to earn some serious dividend income? These high-quality, high-yield dividend stocks are well-regarded not only for their high payouts, but for the sustainability of those dividends (at least in the eyes of investment professionals covering the stocks).

We look into these seven companies’ dividend profiles and why analysts think their stocks are well worth holding in your income portfolio.

Related: 13 Best Long-Term Stocks to Buy and Hold Forever

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As even novice investors probably know, funds—whether they’re mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay “invested” intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you’re looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

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The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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Charles Lewis Sizemore, CFA is the Chief Investment Officer of Sizemore Capital Management LLC, a registered investment adviser based in Dallas, Texas, where he specializes in dividend-focused portfolios and in building tax-efficient alternative allocations with minimal correlation to the stock market. He is also a Portfolio Manager of the Blue Orbit Capital Fund I, LP and the Blue Orbit Multi-Strategy Fund, LP.

Charles is a frequent guest on CNBC, Bloomberg TV, and Fox Business News, has been quoted in Barron’s, The Wall Street Journal, and The Washington Post, and is a frequent contributor to Forbes, GuruFocus, MarketWatch, and InvestorPlace.com.

He holds a master’s degree in Finance and Accounting from the London School of Economics in the United Kingdom and a Bachelor of Business Administration in Finance with an International Emphasis from Texas Christian University in Fort Worth, Texas, where he graduated Magna Cum Laude and as a Phi Beta Kappa scholar. Charles is a CFA Charterholder in good standing.

Charles lives with his wife Maria Jose, his sons Charles and Ian, and his daughter Gabriela and enjoys regularly traveling to his wife’s native Peru.