7 Best Vanguard Funds to Buy and Hold: A Guide for Long-Term Investors
By Tony Dong | Edited by Tim Smart | July 11, 2025
Vanguard has undeniably transformed the landscape of investing, popularizing low-cost index funds and sparking an industry-wide drive for lower fees — a phenomenon famously referred to as "The Vanguard Effect." For everyday investors seeking reliable, low-fee options for long-term growth, Vanguard remains a go-to choice.
Founded as a shareholder-owned firm, Vanguard’s unique cooperative structure means that when you invest in its funds, you essentially become a part-owner of the company itself. This model has enabled Vanguard to maintain a steadfast commitment to low costs and simplicity, championed by its late founder John Bogle, who advocated for buy-and-hold index investing.
Today, investors can build diversified portfolios using Vanguard’s extensive lineup of 94 ETFs and 267 mutual funds. Below is a look at seven of the best Vanguard funds tailored for patient, long-term investors:
1. Vanguard S&P 500 ETF (Ticker: VOO)
Expense Ratio: 0.03%
The Vanguard S&P 500 ETF is often recommended as a foundational holding in any portfolio. It tracks the S&P 500 index, offering exposure to 500 of the largest U.S. companies weighted by market capitalization. This ensures investors access a diversified group of high-quality, liquid stocks with consistent earnings.
With over $656 billion in assets, VOO is the largest U.S.-listed ETF, prized for its historical performance and ultra-low expense ratio. For investors preferring mutual funds, the Vanguard 500 Index Fund Admiral Shares (VFIAX) provides similar exposure.
2. Vanguard Total Stock Market Index Fund Admiral Shares (Ticker: VTSAX)
Expense Ratio: 0.04%
VTSAX offers comprehensive exposure to the entire U.S. stock market—including small, mid, and large-cap stocks—making it a favorite for those seeking broad diversification. This fund evolved from the original Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) and benefits from an even lower expense ratio.
According to senior investing experts, VTSAX is well-suited for long-term investors because it includes thousands of stocks, from big household names to potential future market leaders. The fund requires a $3,000 minimum investment but provides a core holding capable of being held indefinitely.
3. Vanguard High Dividend Yield ETF (Ticker: VYM)
Expense Ratio: 0.06%
For investors focused on income, VYM offers a broad portfolio targeting higher-yielding U.S. stocks by tracking the FTSE High Dividend Yield Index. This ETF includes more than 580 holdings with a current 2.6% SEC yield over 30 days.
VYM leans towards mature, blue-chip companies in the financial, industrial, and consumer staples sectors and excludes real estate investments for tax efficiency. Its lower valuation tilt means it acts as a quasi-value fund, favoring stocks with stable dividends over high growth.
4. Vanguard Dividend Appreciation ETF (Ticker: VIG)
Expense Ratio: 0.05%
VIG provides exposure to companies with a track record of increasing dividends for at least 10 consecutive years. It tracks the S&P U.S. Dividend Growers Index and is designed to avoid high-yield “trap” stocks that may be financially distressed by excluding the top 25% highest dividend yields.
Weights are market cap-based but capped at 4% per stock to reduce concentration risk. This makes VIG a quality-oriented dividend fund suitable for investors who value steady dividend growth over yield alone.
5. Vanguard Real Estate ETF (Ticker: VNQ)
Expense Ratio: 0.13%
For investors seeking to add real estate to their portfolios, especially within tax-advantaged accounts, VNQ offers diversified exposure to Real Estate Investment Trusts (REITs). The fund tracks the MSCI US Investable Market Real Estate 25/50 Index, representing a broad mix of real estate subsectors, including commercial, residential, healthcare, data centers, and more.
Unlike dividend-focused Vanguard funds, VNQ deliberately includes REITs to capture real estate income and growth, though it carries a slightly higher expense ratio.
6. Vanguard Wellington Fund Investor Shares (Ticker: VWELX)
Expense Ratio: 0.25%
The Vanguard Wellington Fund is a balanced fund, combining equity and bond exposure in a single vehicle. It aims to provide moderate growth with lower volatility through a diversified mix of stocks and fixed income securities. This fund is ideal for investors seeking a more traditional balanced portfolio without having to pick multiple funds.
7. Vanguard Target Retirement 2070 Fund (Ticker: VSVNX)
Expense Ratio: 0.08%
Target-date funds like VSVNX offer a hands-off approach to investing with an asset allocation that automatically adjusts as retirement approaches. The 2070 fund is designed for investors planning to retire around 2070, consisting of a diversified mix of stocks and bonds that gradually becomes more conservative over time.
This fund is perfect for investors starting early and seeking a simple, all-in-one solution to keep their portfolio aligned with long-term retirement goals.
Final Thoughts
Vanguard’s emphasis on low costs, broad diversification, and passive management has made its funds highly attractive for buy-and-hold investors. Whether you want straightforward large-cap exposure through VOO, total market diversification via VTSAX, or specialized income or balanced options, Vanguard offers high-quality funds to suit a range of investing needs.
For patient investors ready to build a lasting portfolio, these seven Vanguard funds are among the best starting points to consider.
Disclosure: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before investing.
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