In this article, we discuss 5 of the best stocks in Vanguard’s top ETF to buy. If you want to see more of the best stocks in Vanguard’s top ETF to buy, go directly to 11 Best Vanguard Stocks to Buy Now.
5. Alphabet Inc. (NASDAQ:GOOG)
% of Vanguard Total Stock Market ETF (VTI) as of 9/30: 1.40%
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) reported softer than expected Q3 results with Q3 EPS of $1.06 on sales of $69.09 billion versus the expected $1.25 and $70.61 billion. YouTube ad revenue fell to $7.07 billion from $7.21 billion while Google Cloud sales only rose to $6.87 billion from $6.75 billion in the same quarter of the previous year. While Alphabet Inc. (NASDAQ:GOOG) faces near term headwinds such as the strong U.S. dollar and a potential recession in 2023, the company nevertheless has substantial earnings growth potential given its leading position in search and mobile operating systems. As of 9/30, Alphabet Inc. (NASDAQ:GOOG) accounted for 1.4% of the Vanguard Total Stock Market ETF (VTI).
4. Tesla, Inc. (NASDAQ:TSLA)
% of Vanguard Total Stock Market ETF (VTI) as of 9/30: 1.96%
Number of Hedge Fund Holders: 72
Although Elon Musk has yet another company in Twitter to manage in addition to Tesla, Inc. (NASDAQ:TSLA) and SpaceX, Tesla, Inc. (NASDAQ:TSLA) is doing pretty well given its growth so far. If the company can successfully dominate autonomous driving or robots, Tesla, Inc. (NASDAQ:TSLA)’s substantially higher than peer valuation would look not as expensive although whether that happens is uncertain. What is certain is that Tesla, Inc. (NASDAQ:TSLA) has a substantial market cap and the stock accounted for 1.96% of the Vanguard Total Stock Market ETF (VTI) as of 9/30, ranking it #4 on our list of 11 Best Vanguard Stocks to Buy Now.
3. Amazon.com, Inc. (NASDAQ:AMZN)
% of Vanguard Total Stock Market ETF (VTI) as of 9/30: 2.72%
Number of Hedge Fund Holders: 252
Like many other tech companies, Amazon.com, Inc. (NASDAQ:AMZN) is facing headwinds given that the company said it expects fourth quarter sales of between $140 billion and $148 billion versus analyst expectations of $155.15 billion. For the third quarter, Amazon.com, Inc. (NASDAQ:AMZN)’s Amazon Web Services net sales grew to $20.54 billion but missed expectations of $21.1 billion.
While Amazon.com, Inc. (NASDAQ:AMZN) could face further weakness if a recession occurs in 2023, the company still has a lot of earnings growth potential given its market share of growing markets such as e-commerce and the cloud. As of 9/30, Amazon.com, Inc. (NASDAQ:AMZN) accounted for 2.72% of the Vanguard Total Stock Market ETF (VTI), ranking it #3 on our list of 11 Best Vanguard Stocks to Buy Now.
2. Microsoft Corporation (NASDAQ:MSFT)
% of Vanguard Total Stock Market ETF (VTI) as of 9/30: 4.82%
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) could also be facing headwinds given that its Q2 guidance was ‘rough’ according to Rishi Jaluria of RBC Capital. Given the guidance, it seems there could be greater than expected slowdowns in Microsoft Corporation (NASDAQ:MSFT)’s cyclical consumer business which could pressure FY23 operating margins. With a forward P/E of 19.2, Microsoft Corporation (NASDAQ:MSFT) and the company’s expected growth in the next 5 years, the stock is nevertheless attractive long term.
1. Apple Inc. (NASDAQ:AAPL)
% of Vanguard Total Stock Market ETF (VTI) as of 9/30: 5.86%
Number of Hedge Fund Holders: 128
As the biggest tech company of all, Apple Inc. (NASDAQ:AAPL) accounts for 5.86% of the Vanguard Total Stock Market ETF (VTI) as of 9/30. As a result, Apple Inc. (NASDAQ:AAPL) ranks #1 on our list of 11 Best Vanguard Stocks to Buy Now.
Like other tech companies, Apple Inc. (NASDAQ:AAPL) faces headwinds with the company expecting the strong dollar to negatively affect the company’s international earnings in Q1.
For Q4, however, Apple Inc. (NASDAQ:AAPL) performed pretty well. For the quarter, the company reported EPS of $1.29 on sales of $90.1 billion versus the consensus of $1.17 on sales of $88.9 billion for the fourth quarter. Apple Inc. (NASDAQ:AAPL) also returned over $29 billion in capital back to shareholders.
You can also take a look at 15 Biggest Dow Companies By Market Cap and 12 Best Ethical Stocks To Buy Now.
