Money selects funds it believes are most likely to help you achieve long-term investing success. The publication’s goal is to help alleviate the confusion and anxiety of building a diversified, cost-effective investment portfolio that’s built to last.

Money‘s recommendations fall into 3 categories:

Building-block funds cover a broad portion of the stock and bond markets to help you build the core of your long-term portfolio.

Custom funds lean toward certain types of stocks and bonds to supplement your core holdings.

One-decision funds hold a diversified mix of stocks and bonds and might be good alternatives if you don’t want to create a portfolio on your own.

Money uses a number of factors to determine which ETFs and mutual funds make the list, including low costs and long-term performance.

20 Vanguard ETFsETFs

Added to this year’s Custom ETFs category is Vanguard Energy ETF (VDE), which Money touts for its low expense ratio and long-term outperformance versus its peers.

 

Building-block ETFs

 

U.S. stock ETF

S&P 500 ETF (VOO)

U.S. bond ETFs




Short-Term Bond ETF (BSV)
Short-Term Inflation-Protected Securities ETF (VTIP)
Total Bond Market ETF (BND)

International stock ETFs



FTSE All-World ex-US Small-Cap ETF (VSS)
FTSE Emerging Markets ETF (VWO)
Total International Stock ETF (VXUS)

International bond ETF

Total International Bond ETF (BNDX)

Specialty ETF

Real Estate ETF (VNQ)

 

Custom ETFs

 

U.S. stock ETFs







Growth ETF (VUG)
Mid-Cap Growth ETF (VOT)
Mid-Cap Value ETF (VOE)
Small-Cap Growth ETF (VBK)
Small-Cap Value ETF (VBR)
Value ETF (VTV)

U.S. bond ETFs

Short-Term Corporate Bond ETF (VCSH)
Tax-Exempt Bond ETF (VTEB)

Specialty ETFs



Energy ETF (VDE)
Global ex-U.S. Real Estate ETF (VNQI)
International Dividend Appreciation ETF (VIGI)

 

23 Vanguard mutual fundsMutual funds

The mutual funds Money recommends include a mix of index and actively managed funds, as well as Vanguard’s entire 12-fund Target Retirement Fund series in its One-Decision Funds category.

 

Building-block mutual funds

 

U.S. stock mutual fund

Mid-Cap Index Fund Admiral™ Shares (VIMAX)

U.S. bond mutual funds




Short-Term Bond Index Fund Admiral Shares (VBIRX)
Total Bond Market Index Fund Admiral Shares (VBTLX)
Inflation-Protected Securities Fund Investor Shares (VIPSX)
Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX)

International stock mutual funds







Emerging Markets Stock Index Fund Admiral Shares (VEMAX)
FTSE All-World ex-US Small-Cap Index Fund Investor Shares (VFSVX)
Total International Stock Index Fund Admiral Shares (VTIAX)

International bond mutual fund

Total International Bond Index Fund Admiral Shares (VTABX)

Specialty mutual fund

Real Estate Index Fund Admiral Shares (VGSLX)

 

Custom mutual funds

 

U.S. stock mutual funds










Mid-Cap Growth Index Fund Admiral Shares (VMGMX)
Mid-Cap Value Index Fund Admiral Shares (VMVAX)
Small-Cap Growth Index Fund Admiral Shares (VSGAX)
Small-Cap Value Index Fund Admiral Shares (VSIAX)
Value Index Fund Admiral Shares (VVIAX)

U.S. bond mutual funds






Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX)
Limited-Term Tax-Exempt Fund Investor Shares (VMLTX)
Short-Term Investment-Grade Fund Investor Shares (VFSTX)

International stock mutual fund

International Growth Fund Investor Shares (VWIGX)

Specialty mutual funds



Global ex-U.S. Real Estate Index Fund Admiral Shares (VGRLX)
International Dividend Appreciation Index Fund Admiral Shares (VIAAX)

 

One-decision mutual funds

 

Target-date funds

Target Retirement Funds

Traditional balanced mutual fund

Wellington™ Fund Investor Shares (VWELX)


Notes:

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

Money magazine is not affiliated with Vanguard or its mutual funds or ETFs. The article mentioned here is neither an offer to sell nor a solicitation of an offer to buy shares.

All investing is subject to risk, including the possible loss of the money you invest.