In what is turning out to be another astounding year of growth for the exchange-traded funds (ETFs) industry, Vanguard is, once again, flexing its leadership muscles. At the end of November, exchange-traded products listed in the U.S. had a record combined $2.47 trillion in assets under management.
Last month, investors added nearly $9.7 billion in new money to Vanguard ETFs, a total exceeded by just two other issuers, according to ETF research firm ETFGI. Year to date through the end of November, Vanguard ETFs had hauled $76.23 billion in new capital, a total exceeded by only BlackRock Inc.’s (NYSE:BLK) iShares unit, notes ETFGI.
Indeed, investors continue embracing Vanguard ETFs and the Pennsylvania-based issuer rewards that faith. For example, just days before Christimas, Vanguard announced another round of fee cuts, this time pertaining to 11 ETFs, among other funds offered by the company.
“In 2004, when Vanguard managed $6 billion in ETF assets, the average expense ratio for Vanguard’s ETFs was 0.22 percent,” Vanguard said in a statement. “Today, Vanguard manages $593 billion in U.S. ETF assets. The average expense ratio of the firm’s ETFs is 0.12 percent, or less than one-third that of the 0.53 percent industry average.”
Those data points confirm Vanguard ETFs are almost always among the industry’s least expensive, but hunting for the best one of the bunch is more than just a grab at the very cheapest ones.
Here are some ideas for the best Vanguard ETFs heading into 2017.