The Best Vanguard ETF to Invest $1,000 in Right Now


Exchange-traded funds (ETFs) are an excellent way to grow your wealth. They offer investors a treasure trove of choices, often with little in the way of fees. Here, I’ll review some of the best ETF offerings from Vanguard and reveal my top choice for 2025.

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Vanguard has many top ETFs on offer

Vanguard is one of the world’s leading ETF administrators, offering over 80 ETFs with combined assets under management of more than $2.6 trillion. In other words, there are plenty of fantastic Vanguard ETFs to choose from. Here are a few of my favorites:

The Vanguard Growth ETF (VUG -1.43%) tracks large-cap growth stocks like Apple, Microsoft, and Nvidia. As of this writing, it has generated a year-to-date return of 35% — making it one of Vanguard’s top-performing funds. In addition, its expense ratio of 0.04% is one of the lowest around.

The Vanguard S&P 500 Growth ETF (VOOG -1.43%) also tracks large-cap growth stocks, some 300 in total, and is heavily weighted with “Magnificent Seven” stocks. As of this writing, it is Vanguard’s best-performing stock ETF with a year-to-date return of 38%. Its expense ratio of 0.1% isn’t the lowest the company offers, but it is still low by industry standards.

The Vanguard Information Technology ETF (VGT -1.56%) is a tech-focused ETF that boasts large holdings of Apple, Microsoft, Nvidia, and Broadcom, along with smaller positions in Salesforce, Oracle, Advanced Micro Devices, and many other tech stocks. This fund has generated a 31% year-to-date return, and it also boasts one of the best five-year compound annual growth rates (CAGRs) of any Vanguard ETF (22%). The fund’s 0.1% expense ratio means you only pay $10 per year in fees for every $10,000 invested in the fund.

VGT Total Return Level Chart

VGT Total Return Level data by YCharts

My favorite Vanguard ETF right now

While all these funds are excellent choices for most portfolios, there’s another Vanguard fund that has jumped to the top of my wish list right now. At the moment, my top choice is the Vanguard Communication Services ETF (VOX -1.12%). The reason I like this ETF so much right now is because of the mix of companies that make up the bulk of the ETF’s holdings.

VOX Total Return Level Chart

VOX Total Return Level data by YCharts

For example, the fund has very large positions in Meta Platforms (23% of assets) and Alphabet (21%), along with substantial positions in Netflix (5%), Verizon Communications (4%), Comcast (4%), AT&T (4%), and Walt Disney (4%). It also has smaller, but still significant, positions in a few of my favorite under-the-radar stocks like The Trade Desk (2%) and Roblox (2%).

Indeed, another way to think about this ETF is as an internet sector ETF, rather than a communications or telecom ETF. That’s because traditional telecom/broadband stocks like Verizon, AT&T, and Comcast are no longer the largest sub-sector in the fund. Increasingly, social media and digital advertising stocks, like Meta Platforms, Alphabet, The Trade Desk, and Roblox, are driving the fund’s overall performance.

To sum up, this fund is well-positioned for the future, as digital forms of communication, entertainment, and advertising continue to supplant legacy mediums. And that’s why the Vanguard Communication Services Index Fund ETF is my top Vanguard ETF right now.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in AT&T, Alphabet, Nvidia, Roblox, The Trade Desk, Vanguard World Fund-Vanguard Information Technology ETF, and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle, Roblox, Salesforce, The Trade Desk, Vanguard Index Funds-Vanguard Growth ETF, and Walt Disney. The Motley Fool recommends Broadcom, Comcast, and Verizon Communications and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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