3 Underrated Vanguard Index Funds That Deserve More Attention

by | Sep 7, 2023 | Vanguard IRA | 39 comments

3 Underrated Vanguard Index Funds That Deserve More Attention




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All anybody talks about on YouTube is Vanguard Index Fund VTSAX or Vanguard Index Fund VFIAX. I am here to tell you that there are other Vanguard Index Funds out there that may be PERFECT for your investment portfolio. These Vanguard Index Funds may not be talked about AT ALL on YouTube, but they do an EXCELLENT JOB of delivering high returns for investors.

WHY VANGUARD VTSAX IS OVER-HYPED

All anybody talks about on YouTube is how Vanguard’s VTSAX Index Fund is the best thing since sliced bread. I personally do NOT own VTSAX because it is NOT REALLY a true total stock market index fund. This is due to market capitalization weighting. This means that the top-value stocks in an index (think Microsoft, Amazon, Google, etc.) have the highest weighting in the index whereas the lowest value companies have the least weighting. As a result, the TOP 10 Holdings in VTSAX represent nearly 20% of the index even though there are over 3,500 holdings in the index. IN FACT, the top 10 holdings in the VTSAX Total Market Index Fund MATCH the top 10 holdings in the VFIAX S&P 500 Index Fund.

THE [3] UNCOMMON VANGUARD ETF & INDEX FUNDS:

Vanguard Mega Cap Growth ETF (MGK) | No Equivalent Index Fund
===== ALL OF THE DETAILS ARE IN THE VIDEO =====

Vanguard Small Cap Growth ETF (VBK) | Vanguard Small-Cap Growth Index Fund Admiral Shares (VSGAX)
===== ALL OF THE DETAILS ARE IN THE VIDEO =====

See also  ETFs for One-Decision Asset Allocation (VCIP/VCNS/VBAL/VGRO/VEQT | XBAL/XGRO)

Vanguard High Dividend Yield ETF (VYM) | Vanguard High Dividend Yield Fund Admiral Shares (VHYAX)
===== ALL OF THE DETAILS ARE IN THE VIDEO =====…(read more)


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3 AMAZING Vanguard Index Funds NOBODY is Talking About!

When it comes to index funds, Vanguard has long been considered a pioneer and leader in the industry. With a wide range of offerings, Vanguard index funds have garnered a reputation for their low fees, diversification, and long-term growth potential. While funds like the Vanguard 500 Index Fund (VFIAX) and Total Stock Market Index Fund (VTSMX) often steal the spotlight, there are a few lesser-known funds that deserve some attention. Here are three amazing Vanguard index funds that are flying under the radar.

1. Vanguard International High Dividend Yield Index Fund (VIHAX):
While many investors focus on domestic stocks, the international market presents countless opportunities. This index fund provides exposure to high dividend-yielding equities from developed and emerging markets worldwide. The fund aims to track the performance of the FTSE All-World ex-US High Dividend Yield Index, which is comprised of companies that have higher-than-average dividend yields compared to the non-U.S. equity market. With a low expense ratio and broad diversification, VIHAX offers investors a chance to enhance their portfolio’s income while benefiting from international growth potential.

2. Vanguard Real Estate Index Fund (VGSLX):
Real estate investment trusts (REITs) have long been a popular choice for income-seeking investors, and the Vanguard Real Estate Index Fund is an excellent vehicle for gaining exposure to this asset class. This index fund tracks the performance of the MSCI US Investable Market Real Estate 25/50 Index, which includes a broad range of publicly traded U.S. REITs. With low costs and a solid dividend yield, VGSLX can offer investors steady income and the potential for long-term capital appreciation as the real estate market continues to grow.

See also  VTI vs VOO: Comparing the Top Vanguard ETF Index Funds

3. Vanguard Health Care Index Fund (VHCIX):
With the healthcare sector often considered a defensive play, the Vanguard Health Care Index Fund offers investors a way to tap into this industry’s growth potential. This index fund seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index and invests primarily in healthcare-related stocks. As the demand for healthcare services continues to rise, VHCIX provides investors with exposure to a diverse range of companies involved in pharmaceuticals, biotechnology, medical equipment, and more. Given the sector’s resilience and continuous innovation, this fund can be a valuable addition to an investor’s portfolio.

While these three Vanguard index funds may not receive as much attention as their better-known counterparts, they boast compelling features that make them worth considering. By diversifying across international high dividend-yielding equities, real estate investment trusts, and the healthcare sector, investors can potentially enhance their portfolios while minimizing risk. As always, it’s essential to conduct thorough research and consult a financial advisor before making any investment decisions.

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39 Comments

  1. Jean Jasinczuk

    So many bad advises in that video… The performances comparison on recent performances is totally meaningless and can lead to the buy high and sell low behavior. Recommend growth indexes while many academic study shows that value offer better returns. My take on it: we have no clue what will outperform, diversify.

  2. Bill Carlson

    VITAX is the Only fund to have at Vangaurd.

  3. G. Moore

    Good vid. MGK is interesting. Reminds me of an old radio station, WMGK. No love for my favorite, VGT? Hmmm

  4. TheSmartLawyer

    Vsgax is a great buy now. Going to check out vhyax

  5. david brooks

    SCHD and SCHG are the Best!!!

  6. Georgiie_nbs

    Hello I’m starting my 401k at work I have vanguard I’m looking into going hard into VINIX what are your thoughts on that I’m going for the long run I’m 23 years old

  7. DoubleJabSlipRightHand

    Weak betamale. Nice thumbnail, you creep, are you trying to attract children for clicks? Are you trying out to host a children's show? Blues Clues?

  8. Kris

    relax

  9. Ian Scianablo

    Does Vanguard Mega Cap Growth self clense?

  10. Ian Scianablo

    Hi! I'm starting my very first Roth Ira via M1 Fin. I just want a Vanguard Index Fund with only 13-20 of the top US companies. Is there anything there for me? No bonds. Not crazy about 100s of comps. Is there an index fund low cost with a much higher concentration of FB, MSFT AMZ Brks B shares?

  11. T. Caskets

    What about vinix in a company 401k

  12. LuC1800

    Great video! Thanks

  13. Martha ayalew

    What stock do you recommend for short term gain? I have 10k and want to grow it to pay down student loan of 25k. Thanks

  14. Andrew A

    Symbols are MGK, VBK, VYM

  15. eastcoastbret

    VIGAX will blow up mid 2022 thru 2030. Just in time for my retirement.

  16. Luke Allen

    Great video. I will add VBK.
    Check out VHT and VFH, other Vanguard ETF sectors that are killing it and add diversification

  17. Simoniousclefts

    For a tax advantaged account I like Pimco PSLDX. Great yield at 26%

  18. Derek

    @The Average Joe Investor. Do you have a video comparing dividend investing to growth investing & which is better for the long term investor? Also, I would love to see a video explaining the differences between the investment types such as VB, VBK & VBR.

  19. Noxious News

    Are you able to set up automated investing in the ETF versions of these funds? When I set up automated investing, my only option is VTSAX even though I also own the VXUS ETF. VXUS is not an option for monthly or weekly automated bank drafts. I would have to buy the VHYAX if I want to automate which is $3000 minimum to open, and 0.08% vs. 0.06% for the VYM ETF.

  20. Monke Lifter

    MGK has become even better in the last year!!!

  21. Andrew

    Great contact. Aren’t MGK & MGC pretty much the same thing. As far as it’s waiting in the top 10 stocks.

  22. brkbeat junkie

    SPYG has a much lower expense ratio than VOOG which is abnormal. SPY is more expensive than VOO

  23. Decipher Code

    I want to add MGK and VBK …how about VXF?

  24. Ice Man

    10 stocks

  25. JoeisCooking

    VYM all the way, baby!

  26. Dave R

    Didn’t realize Voo,Vti was same!

  27. Bangpaulxu

    Great vid Joe, thank you!!!!!

  28. Robbie B

    I like VXF as a hedge for all my funds that have a weighted Tesla and Amazon in. And has nice dividends

  29. Tyler Conlon

    yeah especially VB it grew 663% since inception in 1992

  30. Brandon Goode

    Going to add the 2 I didn't have, already had the small cap – Mahalo bro!!!

  31. Tyler Conlon

    Those are good but if you are investing in long term it doesn’t make a difference to wait for the stock to drop.
    My 5 picks for mutual funds
    VTSAX
    VFIAX
    VWUSX
    VIGAX
    VITAX

    ETF
    VGT (if you love apple)
    VCR (strong companies)
    VOO (low exp ratio)
    VPU (higher dividend)
    VUG

  32. Doug

    (MGK) Machine Gun Kelly Growth Index BROOO

  33. Macky Mac

    What about VIGAX?

  34. Julio perez

    Great insight Joe, on lesser known ETF’S by Vanguard, I’ll definitely be investing in all 3 index funds in the immediate future.

  35. Jim Handler

    Currently have VTSAX & VFIAX (401K). What are your thoughts on VWUSX, VWIGX, VGHCX ?

  36. Brian

    Thank you for your hours of research. God bless and Happy New Year!

  37. Gloria G George

    What happen to the white board? I missed the 3. I will watch again.

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