Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Geoffrey Seiler, a contributing analyst, outlined four Vanguard exchange-traded funds (ETFs) on November 15, 2025, that can serve as foundational components for investors aiming to construct a balanced and diversified portfolio. The recommendations include ETFs providing exposure to the entire U.S. stock market, targeted growth stocks, international high-dividend equities, and a broad range of bonds.
Building a Diversified Portfolio with Vanguard ETFs
Seiler suggests that a balanced portfolio is a key goal for most investors, though its composition will vary based on individual age, risk tolerance, and financial objectives. For those not yet in retirement, he recommends employing a dollar-cost averaging strategy when investing in ETFs to mitigate market timing risks and foster long-term wealth accumulation.
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) offers broad exposure to the entire U.S. stock market, tracking the CRSP US Total Market Index. This fund encompasses over 3,500 stocks listed on the New York and Nasdaq exchanges, including mid-cap and small-cap companies, while remaining primarily weighted toward large-cap stocks.
Over the past decade, VTI has demonstrated an average annual return of 14%, establishing itself as a consistent performer within the market.
Vanguard Growth Index (VUG)
To complement a broad market base, the Vanguard Growth Index (VUG) is proposed for investors seeking exposure to leading growth stocks. This ETF largely represents the growth segment of the S&P 500, with over 60% of its portfolio concentrated in technology companies.
Major holdings include prominent tech leaders such as Nvidia, Microsoft, and Apple. The fund has achieved an impressive yearly return of 17.4% over the last ten years.
Vanguard International High Dividend Yield ETF (VYMI)
For international diversification and exposure to value stocks, the Vanguard International High Dividend Yield ETF (VYMI) is highlighted. This ETF tracks the FTSE All-World ex US High Dividend Yield Index, focusing on dividend-paying companies outside the United States.
Its geographical allocation includes approximately 43% in European companies, 26% from the Asia Pacific region, 8% from Canada, and over 20% from emerging markets. VYMI has recorded an average annual return exceeding 13% over the past five years.
Vanguard Total Bond Market ETF (BND)
For investors incorporating fixed-income assets, the Vanguard Total Bond Market ETF (BND) provides a comprehensive option. This fund invests in a diverse array of over 11,000 government, corporate, and mortgage-backed securities.
While the author notes that bond returns have been modest in recent years, with BND averaging 1.9% yearly over a decade and a slight decline over five years, the fund has rebounded by approximately 6.7% in 2025. Future performance could improve if the Federal Reserve implements interest rate reductions.
Portfolio Foundation
The recommended Vanguard ETFs offer a structured approach to building a diversified investment portfolio, spanning various market segments and asset classes. By combining these funds, investors can aim for broad market exposure, growth potential, international diversification, and a measure of stability through fixed-income investments.
