The Best Vanguard Index Funds to Buy in 2023 (2023)

Introduction

This Video is my selection of the best Vanguard Index funds you can invest in for 2023, I'll take you through all of the most popular ones from investing in a global index fund like VWRL to the emerging markets, the UK, and even a bonus one at the end for high dividend investors. I'll cover off all of the options for you an explain what they invest in, how much they cost, and where to buy them, as well as showing you how to find the accumulation versions of each fund!

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Content

I've put together a list of what I think are some of the best Vanguard index funds that you can buy to help your Investments grow this year, I'll go through.

Why I've chosen each one, some high level details like what they let you invest in and what the costs are and how you can find them on whatever Apple platform that you use to invest for me, whether you're, just starting out or you've, been investing for decades using index funds as the core part of your investing strategy is so important and I honestly wish that I'd known about them all those years ago when I started investing anyway, starting from the top in no particular order.

Here goes so if you ever wanted to own the world, but you don't quite yet have Elon Musk money.

Investing in a global, Index Fund might be the closest thing that us mere mortals can use to own.

A slice of almost every big business in the world.

Vanguard's got a couple of offerings here and they're, some of the most popular ones that they offer.

Here's the ftse all-world ETF now from a high level, you'll see that this fund contains 3744 companies, has ongoing costs of 0.22 now just remember to pay attention to fees, they're, not the only thing to worry about, but they can really add up in the long term.

The fees see at the yearly cost shown as a percentage.

So if you had a thousand pounds invested, 0.22 would be two pounds twenty and that's how much going to be taken out of your investments in a single year.

Now this isn't a huge amount of money, but just be careful.

Some other funds out there really like to take you for a ride, so make sure you check out the fees anyway in terms of Investments, because it's a global fund you're, getting a stake in companies based all over the world, so you'll see you've got everything here from the US, Europe Japan and then even Emerging Markets, like China too.

It's all based on Market weight.

So all that means is that the bigger the company, the bigger the share of the fund, so you can see in the holding section that all of the biggest companies in the world are here with Apple at the top currently holding 3.75 of the fund and so on.

As you move down that list and finally, Pro tip for you.

This fund actually has a couple of different versions on vanguard's website directly you'll only find this one, which is a ticker symbol of vwrl, but there is a version called vwrp.

Now the big difference, one pays a dividend and the other reinvests it automatically personally I wish vwrp was offered directly on vanguard's platform, but it's not so if you want to access it, you need to use something like invest engine, as you can see here, who has it available or even trading 212 again, I'll show that one on screen now showing that you can search for vwrp.

Now both platforms provide you access to a free stocks and shares Isa at the moment, and you can buy these funds in fractions as well, which is super useful and I'll leave all the links below for you with the latest offers.

Now sometimes they do change, but there's free cash or shares up for grabs right on to option number two.

If the world's not enough as James Bond found out, then you might want to dive a little deeper into certain parts of the world that take your liking.

This wouldn't be a complete list of index funds.

If we didn't talk about the S P 500, so let's take a look at two really popular funds that we can choose.

As you can see on screen now the fund invests in around 500 of the largest companies in the US, give or take a few as they're always changing, and some companies have more than one kind of listing as well.

The index contains some of the biggest companies in the world in the biggest Market in the world, the United States.

It's got ongoing cost of just 0.07 and it's also available in more than one version, but I'll touch on that one in just a moment, as you can see, if you look what's inside, the fund you'll soon realize that it looks really similar to the global index fund that we just looked at because, as we said, the US is the largest market in the world.

So it's no surprise that Apple again is at the top.

The main difference, though you'll see, are the weighting, so the amount of money that's allocated to each one is slightly higher than the global fund, because you're no longer spreading your money around the other parts of the world.

Now personally I'm a big fan of this index and have a lot of my own Investments here, which you can follow, along with all of my regular portfolio updates on my channel Warren Buffett's.

Also, a big supporter too, and he's always advising people to use index funds in loads of his interviews and in his letters to shareholders from his famous Berkshire Hathaway company and just before you go rushing off to invest in it again, like the global fund, there's actually two versions: you've got V, USA and vuag.

Now vusa is on vanguard's website directly, but vuag isn't so don't ask me why, but it makes no sense to me, but as usual, if you search the UAG on trading 212 or invest engine or whatever other broker, you want this pops up and purse personally, it would be my preferred fund if I could actually invest in it on Vanguard site and that's because vuag automatically reinvests dividends, whereas V USA pays out dividends every quarter, and this might be nice if you're actually needing the cash, but it could be more harm than good, as you might have to manually.

Invest it back again, especially if you're a long-term investor like me anyway.

Just keep that in mind.

The choice is yours: do your own research as I'm, no financial advisor anyway on to the next fund, so this next one's interesting, it kind of sits in the middle between the global fund and the S P 500 fund, as it's got most of the world in, but not all of the Emerging Markets.

This might be ideal for you.

If you don't think just investing in the US is enough, and you want to make sure that you spread your Investments around a little bit more in other areas outside the US like Europe and the Pacific region, which includes major markets like Japan and Korea.

As you can see on screen, the developed World fund has 2 205 stocks inside it and has ongoing costs of 0.12.

If we also look into the details of what's inside the phone you'll see how things break down too, the US is still going to dominate, so you can't escape that market, but you will have 30 of your Investments, outside of which is a decent sized amount for some extra diversification.

If you have a look through the company, Holdings you'll find big European companies, names like Nestle and also Samsung 2, that global technology giant based out of Korea, also you'll notice a pattern here.

There's another two versions to look out for v e v e and vhbg.

The one on the Vanguard platform is yet again the Distributing version which pays out a dividend and the hbg is your automatic reinvesting, one which you'll need to go and find on other platforms.

Just like the others, though, it's available yet again on trading 212 and invest engine and pretty much any other decent platform to fill your boots.

If you don't want to hassle of all those dividends, okay, it's time for a fund, a lot closer to home now and one that might actually be a good place to be.

Considering all that's happened over the last couple of years in the stock market.

Let's have a look at the ftse 100, which is the largest 100 companies based here in the UK.

It's not as exciting as a us and there's no big tech companies here.

But there are a lot of global Giants who often pay out some big dividends, pretty reliably and in a world with high inflation, High interest rates and lots of uncertainty.

This could be a good year for those boring stocks that nobody wanted to own to start to shine again.

Vanguard have this fund on their platform with 102 Holdings and fees of 0.09 per year.

As you can see inside the index, the companies are in a wide range of sectors, so you do get a good amount of diversification with companies and energy Finance, as well as consumer staples and discretionary fun fact for you before you blow all of your money, investing in the ftse 100, because it's close to home remember that it only represents about 4 percent of the global economy, and while that's not tiny, you have to put that in perspective.

So you'll probably want to be a lot more Diversified than just investing into this one on its own and don't forget that, although dividends might be nice to have and seeing the cash appear in, your investing account always feels good.

It's not free, and it just comes out of the value of those companies on the long term price chart for the ftse 100 you'll see that it's been pretty flat and although you'd have to add back in the dividends, you can see that the S P 500 has done a lot better now whether that stays the same for the next few years.

Who knows but just keep the idea of diversification in mind and look after your money now here's your option to look out for you.

You have v, u k e, which is the one that pays dividends available directly with Vanguard and on other platforms.

You have vukg, which is your version which automatically reinvests that's only available in other platforms, to check with your broker and search for that.

If you want your dividends, reinvested for me personally, that makes a lot more sense.

So I don't have to worry about it, but your needs might differ so just check that out.

Okay, now jetting off to another area of the World Market that often gets overlooked.

Let's talk Emerging Markets, there's always been a time when places like like India, China and Africa are always set to explode, and for many years you can see that they've grown their GDP faster than the likes of the US and the UK So.

In theory, this could mean that there's some great opportunities for investors and while they only make up a small part of the global economy at the moment, with billions of people working hard to better themselves, starting businesses and making money, there's no doubt that over time the balance of power will shift.

So if you want to take advantage of this here's, what you've got to look at the Emerging Markets fund.

It currently has 1985 stocks inside of it, and the ongoing costs are 0.22 per year.

You'll see that inside the Emerging Markets fund, that China is the real dominant country as well as Taiwan, which currently has the biggest allocation from the fund with the big chip giant Taiwan semiconductors known as tsmc you'll, then see the big Chinese internet and gaming giants like tencent and Alibaba.

Most recently, Chinese stocks have taken a real beating because of all the trade Wars going on between the US and China, and you've always got to take that into consideration.

When thinking about investing here that there's a little bit more risk in foreign markets outside of your usual Western rules that you you might be used to as usual, there are two versions available to you that you can either pay you a dividend or reinvest for you automatically and, interestingly enough, there's a decent sized dividend here, as you can see, based on the last payment you're.

Looking at around 3.5 provided back to you in dividend payments per year, the dividend paying one is the fund on screen which trades under vfem and I do actually own this one again, you can follow all of my investments on my Vanguard portfolio updates with the next one.

Coming very soon on my channel, then the one you're looking for which reinvest called accumulation is vfeg easily found on any decent investing platform and again here it is on both invest engine and trading 212, for you now on screen, as always be careful not to just YOLO everything into one fund and consider all of your risks find what works for you and stick to the plan.

Now a final fun for those of you, who've decided to stick with the video all of the way through.

Firstly, thank you for your support and if you have enjoyed the video, please do me a huge favor hit the like button for me and press subscribe too.

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With that now done how about a high dividend: Index Fund, here's one that Vanguard have which is specifically put together to generate high quality payments from some of the world's largest companies.

I know a lot of regular viewers are big fans of this fund and the reason I wanted to include it was because I do think that the last few years of investing have taught us that real profits, real cash flows and Quality Companies can really hold up during difficult times and all of the hype stocks who don't make a profit and lose lots of money promising the world can and often do come up empty, so check this one out.

It's the Vanguard ftse all-world High dividend yield ETF, it's got 1 804 companies inside of it from all around the globe, and it has ongoing fees of 0.29 inside the fund itself.

You'll see that the companies are mostly big household names have been around for a very long time and paid consistent dividends going back many decades.

So you have names like Johnson and Johnson Exxon and even JP Morgan and Home Depot over in the states.

Based on the most up-to-date information.

You could expect quarterly dividend payments so one every three months and the yield is 3.8 percent, meaning that a 10 000 pound investment would generate around 380 pounds per year.

In dividends now, as always just be careful with dividends, chasing High payments doesn't mean that you'll be guaranteed to get rich, and you do also need to see some growth too otherwise, you're, basically just being given your money back.

But with that said, this fund has held up pretty well compared to the rest of the stock market, which has had an all four year in 2022 and over the last 12 months.

This fund has managed to stay flat while still paying out dividends.

So that's a big win when you consider the S P 500 investors have had to put up with around a 20 loss this year, you'll find this fund under the ticker symbol, vhyl, and it's available on all good platforms as usual and pro tip just before you do get excited, invest, don't forget to take advantage of your stocks and shares items to get those dividends completely.

Tax-Free, I think it's more important than ever to do this in both trading 212 and invest engine have three Isis that you can take advantage of and buy that funding as well.

There's no point giving all those gains away to the tax man if you can avoid it legally.

Of course.

Now, if you want to know a little bit more about stocks and shares Isis or you're, still a bit confused about some of the things spoken about in this video, don't forget to watch my brand new Investing For Beginners video here, which I've updated ready for 2023.

It explains everything from the beginning step by step.

Alternatively, if you're already up to speed, enjoy my next video for my latest Vanguard portfolio, update and don't forget to leave a like on the way out and subscribe.

As always, though, happy investing.