Retirement planning does not have to be complicated or expensive. Vanguard ETFs can help investors build a diversified portfolio while keeping costs low and spreading risk across the market. Using TipRanks’ Best Vanguard ETFs tool, we picked Vanguard High Dividend Yield Index ETF (VYM), Vanguard Total Stock Market ETF (VTI), and Vanguard Tax-Exempt Bond ETF (VTEB). Together, they offer exposure to the broader stock market, dividend growth, and bonds.
According to TipRanks’ unique ETF Analyst Consensus, which is based on a weighted average of analyst ratings for each ETF’s holdings, VTI and VYM have Moderate Buy ratings. VTI’s average price target of $467.78 offers an upside of 25%, and VYM’s price target of $186 suggests upside of 13%.
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) holds companies across large-, mid-, and small-cap sectors. It can be a good option for retirement investing because it gives investors exposure to the entire U.S. stock market through a single fund. This gives investors broad market exposure and helps spread risk.
Currently, VTI holds 3,477 stocks with total assets worth $690.05 billion. Its top three holdings are Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT). The ETF has 35% of its holdings from the technology sector, followed by 11% from the financial sector. VTI has a low expense ratio of 0.03%.
Vanguard High Dividend Yield Index ETF (VYM)
The Vanguard High Dividend Yield Index ETF offers a simple way to invest in a broad range of companies that pay above-average dividends. This makes it a well-diversified option for investors seeking regular income. The fund also keeps costs low, with an expense ratio of just 0.04% and a dividend yield of 2.31%.
Its focus on large, established dividend-paying companies has helped it weather market volatility while delivering competitive returns compared to the broader market.
The ETF owns 594 stocks and manages about $81.27 billion in assets. Among its largest positions are Broadcom (AVGO), JPMorgan Chase (JPM), and Exxon Mobil (XOM).
Vanguard Tax-Exempt Bond ETF (VTEB)
The Vanguard Tax-Exempt Bond ETF offers investors a way to earn income while reducing their federal tax burden. The Vanguard Tax-Exempt Bond ETF can be a useful choice for retirement investors who want steady income and lower portfolio risk. It invests in municipal bonds, with interest income generally exempt from federal income tax. This can help retirees keep more of their income, especially those in higher tax brackets. Its bond holdings can also help balance stock market swings and add stability to a retirement portfolio.
VTEB offers a dividend yield of 3.46% and currently pays a monthly dividend of about $0.14 per share. It also has a beta of 0.01, meaning it has historically been far less volatile than the broader stock market.