Vanguard ETFs can be brilliant long-term investments for a Stocks and Shares ISA or Self-invested Personal Pension (SIPP). With these funds, investors can get broad exposure to the stock market at a low cost.
Here, I’m going to highlight three Vanguard ETFs that could be worth considering for 2025 (and beyond). I see these products as a great way to build wealth.
A simple global tracker fund
For those looking for a basic global tracker fund, I reckon the Vanguard FTSE All-World UCITS ETF’s (LSE: VWRP) a fantastic option to consider. This provides exposure to over 3,500 stocks across developed and emerging markets. And ongoing fees are only 0.22% a year.
With this product, investors get exposure to all the big names in the stock market. Want to invest in Apple, Amazon, or Nvidia? With this ETF, you can!
In terms of the risk level, Vanguard puts it at six out of seven, so it’s a higher risk product. One specific risk worth pointing out is that the fund has 65% exposure to the US stock market. So if this market tanks, this ETF’s likely to underperform.
Overall though, I think this is an excellent product for broad exposure to the global markets.
Where the action is today
Now, having too much exposure to one geographic region’s a risk, as mentioned above. But if there’s one area of the world I’d be willing to load up on today, it’s America. It’s home to so many fast-growing, innovative businesses. And history shows its stock market tends to outperform those of other countries over the long term.
“Never bet against America”
Warren Buffett
With that in mind, my next pick to consider is the Vanguard S&P 500 UCITS ETF (LSE: VUAG). It provides exposure to the S&P 500 index (the index of 500 US companies). Again, this allows exposure to all the big names in the market. Top holdings are currently Apple, Nvidia, and Microsoft.
Vanguard gives this fund a risk rating of six as well. Personally though, I see it as riskier than the global product I highlighted because it’s only focused on one market.
Fees are just 0.07%, which is very low.
An ETF for dividend investors
Finally, those interested in dividend income may want to check out the Vanguard FTSE All-World High Dividend Yield UCITS ETF (LSE: VHYL). This provides global exposure to large- and mid-cap companies that have above-average dividend yields.
This ETF offers something unique. For starters, the stocks in the portfolio are very different to a standard global tracker. Currently, top holdings include JP Morgan, Exxon, and Home Depot.
Secondly, there’s the income. Currently, the yield’s about 3%, which is far higher than the yield on a standard global tracker.
Now, Vanguard again puts the risk level here at six. But that strikes me as a little odd. Personally, I see this ETF as less risky than the other two funds I’ve mentioned, given the exposure to dividend-paying companies (which are often less risky than growth companies).
That said, if the bull market continues in 2025, this ETF may underperform the other two products. In this scenario, the lack of exposure to tech stocks could hurt performance.
Fees are 0.29% per year, so it’s more expensive than some other ETFs. But I don’t see the fees as a deal-breaker.
