Why I Like Vanguard

life hacking Jun 13, 2024

Vanguard is the largest provider of mutual funds in the world.

And their index funds are world-renowned.

In fact, it’s commonly said that the first index funds available to individual investors were created by the founder & former chairman of Vanguard, John Bogle.

His followers, who are avid index fund investors, are often called Bogleheads.

Warren Buffett has famously said that upon his passing, his wife would do well to be invested primarily in an S&P index fund at Vanguard.

Since I was a teenager, I remember my Dad recommending to me that I invest in index funds at Vanguard.

Me and my wife both have personal IRAs at Vanguard along with our taxable brokerage account.

We’ve invested there for years.

Vanguard is unique in that it is owned by the mutual funds it manages, and therefore owned by its customers.

That’s likely why Vanguard has some of the lowest fees in the industry. And fees can eat up your returns in a hurry.

One of their most famous index funds, VTSAX, has a 0.04% expense ratio. Compare that to other mutual funds with expense ratios 10x or even more than 25x times that much.

Vanguard is not the only quality broker out there. I have investments at other brokerages as well (mostly in index funds or cash equivalents).

But it’s a great place to build a foundation for your investment portfolio.


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