In this article, we will take a look at the 5 best vanguard ETFs for portfolio diversification. To see more such companies, go directly to 12 Best Vanguard ETFs for Portfolio Diversification.
5. Vanguard Consumer Staples ETF (NYSE:VDC)
Consumer Staples never lose their shine since buyers keep buying the essentials even during recessions. Investing in Vanguard Consumer Staples ETF (NYSE:VDC) is one of the best options to diversify your portfolio for hard times.
The ETF’s top holdings include Procter & Gamble (NYSE:PG), Pepsi (NYSE:PEP), Coca Cola (NYSE:KO) and Costco (NASDAQ:COST).
4. Vanguard Energy Index Fund ETF (NYSE:VDE)
The world’s energy appetite keeps growing and provides investors a chance to make money by investing in energy companies. The energy industry is going through a major transformation from conventional energy sources to renewable sources. This transformation has created new opportunities for investors. Vanguard Energy Index Fund ETF (NYSE:VDE) is one of the best Vanguard ETFs for portfolio diversification since it gives exposure to some of the top energy companies in the world, including ConocoPhillips (NYSE:COP), Exxon (NYSE:XOM), Chevron (NYSE:CVX), Schlumberger (NYSE:SLB), among many others.
Vanguard Energy Index Fund ETF (NYSE:VDE) is up about 14% over the past one year.
3. Vanguard Total World Stock Index Fund ETF (NYSE:VT)
Despite the doom and gloom we see and hear in the news, one thing’s for sure: the world economy is bound to grow and total wealth in the global markets is destined to increase amid rising population, increase in investments and millions of people coming out of poverty. It’s difficult for an average investor to bet on the global markets. That’s why Vanguard Total World Stock Index Fund ETF (NYSE:VT) is among the best ETFs for portfolio diversification. Vanguard Total World Stock Index Fund ETF (NYSE:VT) seeks to track the FTSE Global All Cap Index, which covers both well-established and still-developing markets.
There are over 9,000 stocks in the Vanguard Total World Stock Index Fund ETF (NYSE:VT) portfolio. The top holdings of Vanguard Total World Stock Index Fund ETF (NYSE:VT) include some major US companies including Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).
2. Vanguard Health Care Index Fund ETF (NYSE:VHT)
Healthcare stocks are among the top recession-proof stocks that investors pile into even during recessions. Investing in Vanguard Health Care Index Fund ETF (NYSE:VHT) gives you exposure to some of the top healthcare companies that own a major chunk of the lucrative healthcare industry. Some of the top holdings of Vanguard Health Care Index Fund ETF (NYSE:VHT) include UnitedHealth (NYSE:UNH), Johnson & Johnson (NYSE:JNJ), Merck (NYSE:MRK), AbbVie (NYSE:ABBV) and Pfizer (NYSE:PFE).
Most of the top stocks in Vanguard Health Care Index Fund ETF (NYSE:VHT)’s portfolio also offer dividends. These are the safest stocks in the healthcare stocks to which one can gain exposure to easily by investing in this ETF.
1. Vanguard Dividend Appreciation Index Fund ETF (NYSE:VIG)
Inflation, rising interest rates and a broader market downturn that started in 2022 proved the importance of having exposure to reliable dividend stocks which consistently growth dividends. Vanguard Dividend Appreciation Index Fund ETF (NYSE:VIG) seeks to track the performance of the S&P U.S. Dividend Growers Index. Vanguard Dividend Appreciation Index Fund ETF (NYSE:VIG) gives exposure to some of the top dividend stocks which have decades of dividend growth history. These companies include Procter & Gamble (NYSE:PG), ExxonMobil (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).
You can also take a peek at 15 Most Profitable Cutting Edge Technologies That Will Make You Rich and Dow 30 Stocks List: Ranked By Hedge Fund Bullishness Index.
