Vanguard’s Top ETFs to Watch for Wealth Growth in 2025

Exchange-traded funds (ETFs) provide an attractive way to build wealth, offering a wide range of options often with minimal fees. Let’s explore some standout ETFs from Vanguard and identify the top pick for 2025.

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A Look at Vanguard’s Leading ETFs

Vanguard stands out as a top ETF provider, with more than 80 ETFs and over $2.6 trillion in assets under management. This means plenty of excellent options are available for investors. Here are a few notable choices:

The Vanguard Growth ETF (NYSEMKT: VUG) tracks large-cap growth stocks like Apple, Microsoft, and Nvidia. As of now, it reports a year-to-date return of 35%, placing it among the top performers in Vanguard’s lineup with a low expense ratio of 0.04%.

Next is the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG), which covers large-cap growth stocks, totaling around 300, and prominently features the “Magnificent Seven.” Currently, it holds the title of Vanguard’s best-performing stock ETF with a year-to-date return of 38%. While its expense ratio is slightly higher at 0.1%, it remains competitive within the industry.

The Vanguard Information Technology ETF (NYSEMKT: VGT) focuses on tech giants, heavily investing in Apple, Microsoft, Nvidia, and Broadcom. This ETF has yielded a 31% year-to-date return, along with an impressive five-year compound annual growth rate (CAGR) of 22%. Its expense ratio stands at 0.1%, making it cost-effective at only $10 in fees per year for each $10,000 invested.

VGT Total Return Level data by YCharts

Highlighting My Favorite Vanguard ETF

Among these stellar options, one Vanguard ETF currently stands out to me: the Vanguard Communication Services ETF (NYSEMKT: VOX). This fund is appealing due to its diverse mix of companies within its holdings.

VOX Total Return Level data by YCharts

Looking closely, the ETF has significant stakes in Meta Platforms (23% of assets) and Alphabet (21%). It also invests in Netflix (5%), Verizon (4%), Comcast (4%), AT&T (4%), and Walt Disney (4%). There are smaller investments in promising stocks such as The Trade Desk (2%) and Roblox (2%).

Interestingly, this ETF resembles more of an internet sector fund due to the significant influence of digital and social media companies. Traditional telecom players, while still included, are no longer the largest contributors to the fund, highlighting the shift in the communication landscape.