Is a Vanguard ETF the Best Buy on the Market Right Now?

When it comes to investing, choice can be difficult.

There are more than 2,000 stocks currently listed on the ASX. A plethora of companies that all offer unique investment potential.

Picking the right ones though, isn’t easy.

Finding the time to trawl through thousands of stocks is not something most people are willing to do. Hell, you’d be doing better than most if you had an intimate knowledge of just a handful.

Suffice to say, it’s simply too overwhelming for most.

Thankfully, there is an alternative. For an easy, choice-free investment strategy, there are exchange-traded funds. Better known as ETFs.

Rather than investing in an individual company, an ETF lets people invest in a range of companies. A collection of stocks that may be grouped by their size, sector, or other defining traits. All of them though, are designed to be simple.

And in Australia, when it comes to ETFs, Vanguard is one of the biggest in the business.

So, given our current market uncertainty, is now the right time to buy a Vanguard ETF?

Picking the right ETF

Ultimately, the answer to this question is going to come down to preference.

As I mentioned, ETFs are great for investors who don’t want too much choice. That doesn’t mean there isn’t room for some choice though.

In Australia, Vanguard currently offer 29 different ETFs. Covering a range of local shares, international shares, fixed interest, property, infrastructure, and diversified lists.

Here are just a few examples for you:

  • Vanguard Australian Shares Index Fund [ASX:VAS] — Tracks the ASX300 Index — investing in the top 300 companies on ASX
  • Vanguard Australian High Yield Fund [ASX:VHY] — Tracks the FTSE Australia High Dividend Yield Index — investing in top dividend paying stocks
  • Vanguard International Shares Index Fund [ASX:VGS] — Tracks the MSCI World ex-Australia Index — investing in 22 of 23 of developed markets around the world

The point is, each will offer a different return. A factor that does give…

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