Vanguard creates an index fund by buying securities that represent companies across an entire stock index.
Vanguard also offers index funds that mirror the bond markets, which buy and sell government and corporate debt, and are considered safer investments but with smaller returns.
Does Vanguard have an S&P 500 index fund?
The Vanguard S&P 500 Index Fund was the first index-tracking mutual fund when it was launched in 1976. The fund owns the same stocks in the same proportion as the S&P 500 stock index.
Are Vanguard index funds a good investment?
Index funds also make smart choices for long-term investing. Vanguard’s index funds are among the most popular holdings for long-term investors and have attracted such a large amount of investor assets that Vanguard Investments has become the largest mutual fund company in the world.
What are the best Vanguard index funds?
The best Vanguard funds for retirement.
- Vanguard 500 Index Fund (VFIAX)
- Vanguard Total Stock Market (VTSMX)
- Vanguard Star Fund (VGSTX)
- Vanguard Extended Market Index Fund (VEXAX)
- Vanguard Small-Cap Index Fund (VSMAX)
- Vanguard Mid-Cap Index Fund (VIMAX)
- Vanguard Target Retirement 2060 Fund (VTTSX)
How do I open a Vanguard index fund?
Steps to take
- Step 1: Open an account with Vanguard. If you’re not investing though a company-sponsored 401(k), the best way to invest in Vanguard’s offerings is to invest directly though Vanguard’s site.
- Step 2: Link your banking information.
- Step 3: Request a buy.
- Step 4: Check back in on your account at least annually.