7 Popular Vanguard Index Funds for June 2025

When Vanguard founder John Bogle launched the first publicly available index fund in 1976, active investing — where fund managers try to beat the market's returns — held sway.

Over time, index funds that seek to simply match the rise and fall of the broader market have proved more profitable for the average investor for two reasons: markets tend to rise over time, and index funds charge lower fees, allowing investors to keep more of their money in the market.

When it comes to investing in index funds, many turn to Vanguard, which has $10.1 trillion in assets under management as of Sept. 2024.

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What is a Vanguard index fund?

As total stock market values tend to go up over time, index funds harness that trend by capturing entire market gains for investors rather than actively investing in individual stocks. Vanguard index funds track the performance of a single market index — such as the S&P 500 or Nasdaq — to mirror its total market returns.

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How do Vanguard index funds work?

Vanguard creates index funds by buying securities that represent companies across an entire stock index or that are targeted to specific groups (e.g., an industry sector, similarly sized companies, or firms in the same part of the world). Individual investors purchase shares of the fund that interests them, claiming a slice of its returns.

Vanguard also offers index funds that mirror the bond markets. These funds buy and sell government and corporate debt and are considered safer investments, but they typically have smaller returns.

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What are the best Vanguard index funds?

Vanguard offers many index funds to choose from. Which fund is best for you depends on your portfolio mix and what you can afford based on account minimums and fees. You can also check the fund’s historical performance — with the standard caveat that past performance does not guarantee future results.

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Popular Vanguard index funds at a glance

Vanguard 500 Index Fund (VFIAX)

Also known as the Vanguard S&P 500 Index fund, this is the one that started them all, giving investors exposure to 500 of the largest U.S. companies, which make up 75% of the U.S. stock market’s total value.

Vanguard Total Stock Market Index Fund (VTSAX)

Is three-quarters of the U.S. stock market not enough? This fund covers the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks.

Vanguard Growth Index Fund (VIGAX)

This fund takes a buy-and-hold approach to stocks in large U.S. companies in sectors with higher growth potential, such as technology, consumer services and financial services.

Vanguard Small Cap Index Fund (VSMAX)

Big companies aren’t the only potentially profitable players in the stock market. This fund targets smaller publicly held companies, for investors who want to diversify investments away from larger public companies.

Vanguard Total Bond Market Index Fund (VBTLX)

This fund gives wide exposure to U.S. investment-grade bonds, investing about 30% in corporate bonds and 70% in U.S. government bonds.

Vanguard Balanced Index Fund (VBIAX)

As the name suggests, this fund mixes its investments between stocks (roughly 60%) and bonds (about 40%) to balance growth through exposure to equities with stability through fixed-income investments.

Vanguard Total International Stock Index Fund (VTIAX)

Total U.S. market not enough? This fund takes on the world, tracking stock indexes in both developed and emerging markets across the globe.

How much does it cost to buy Vanguard index fund shares?

Investors make an initial minimum investment — typically around $3,000 — and pay annual costs to maintain the fund, known as an expense ratio, based on a small percentage of your cash invested in the fund.

There are two types of Vanguard index fund shares available to individual investors, and which one you choose will determine how much you pay upfront and how much you’ll pay in annual fees:

Investor Shares

• Minimum investment: $1,000 to $3,000.

• Expense ratio range: 0.08% to 1.8%.

Admiral shares

• Minimum investment: $3,000.

• Expense ratio range: 0.04% to 0.62%.

Note

Most Vanguard index funds no longer offer Investor Shares to new clients.

Another way investors can get a piece of index fund action is by buying exchange-traded funds. These funds carry no minimum investment and can be bought and sold throughout the day like stocks. They're also frequently more tax-efficient than index funds.

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Are Vanguard index funds a good investment?

All investments carry risk, and Vanguard index funds are no exception. But Vanguard has a long history of strong performance — and passively investing in index funds is so popular because most actively managed funds fail to consistently outperform the market.

As with all mutual funds, a key benefit of Vanguard index funds is instant diversification, spreading out risk and dulling the impact of volatility, as broader stock market swings are less bumpy than the rise and fall of any one company's shares.

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How to purchase Vanguard index funds

If you're ready to purchase Vanguard index funds, our Vanguard brokerage review can help you decide whether to buy directly from the company or through another broker (many of which also sell Vanguard index funds). You’ll need to choose the type of account you’d like to open, such as a traditional or Roth IRA, or a taxable account.

Finally, decide which index fund shares you’d like to purchase depending on how much you have to invest, and whether to make monthly additional share purchases in the fund.