Low-Cost Vanguard Funds That Could Lead Portfolios For Years

Perhaps one of the most important metrics long-term investors can forget about when building their portfolios is the cost of constructing these groupings of stocks. Indeed, whether it’s outright cost (in the form of an expense ratio for owning an ETF) or the cost associated with the time and effort to research individual stocks and input them into one’s portfolio (even if there are no associated trading fees for these moves), investing can be an expensive exercise.

For those looking to put some capital to work on their own, and avoid the fees money managers can charge (one of the best pieces of advice I’ve ever been given for my long-term investing journey), I think picking individual stocks and ETFs is a worthwhile exercise. That’s partly because I have an interest in diving into particular companies and ETFs, but to each their own.

So, for investors looking to find some of the lowest-cost Vanguard funds out there, here are three such ideas I think long-term investors should consider right now. 

Vanguard S&P 500 ETF (VOO)

With an expense ratio of just 0.03%, the Vanguard S&P 500 ETF (VOO) remains a go-to option for long-term investors looking for U.S. equity exposure. 

Tracking the S&P 500, VOO provides investors with exposure to essentially the benchmark most gauge their performance against. Thus, for those who feel they can’t beat the market, the next best thing might be to simply buy the market. This is the strategy Warren Buffett and others have advocated for, and over the long-term, that’s a winning strategy.

Now, while I think VOO should be a staple of most portfolios (and it’s in mine), there’s also the reality that we live in a vast world filled with other options. I’ve provided two other complementary ETF picks I think suit investors who wish to have outsized U.S. exposure well.

But the reality is that betting against the U.S. market has been a losing bet, for a very long time. I don’t see that dynamic changing anytime soon. My take is VOO will remain a buy over the long-term (and I’ll start pounding the table even harder if we do get a selloff at some point down the road). 

Vanguard Total Bond Market ETF (BND)

Also with an expense ratio of 0.03%, the Vanguard Total Bond Market ETF (BND) is an excellent option for long-term investors to consider. 

Indeed, when most investors think of ETFs, they immediately think of low-cost investing vehicles for stocks. However, ETFs such as BND that provide similar exposure to the fixed income market and a range of bonds can be equally useful. 

Indeed, the size and complexity of the bond market alone can turn some investors off from putting capital to work in this space. But I’ve always thought that the portfolio hedge bonds provide (bonds tend to increase in value during rate cutting cycles, which typically take place when the market is tanking) is worth holding onto. And in an environment where we could be kicking off another vigorous cutting cycle, BND looks much more attractive today than it has in the past. 

In other words, I think BND is a great long-term holding for investors looking to balance out some of their equity exposure with bonds, and for those who simply want to play a declining interest rate environment. In my books, both are useful catalysts to play in this current market dynamic. 

Vanguard Total International Stock ETF (VXUS) 

Investors seeking greater international exposure to equities may be looking at specific individual stocks. And that’s great. But personally, I’m of the opinion that adding thousands of such companies to one’s research list is both counterproductive and tedious. As such, I prefer ETFs such as the Vanguard Total International Stock ETF (VXUS), and its ultra-low expense ratio of 0.05%.

This fund invests solely in companies outside of the U.S. market. Indeed, most American investors I’d argue are likely over-exposed to U.S. equities. During this bull market rally we’ve seen in recent years, that’s been the right bet. But in 2025, many international markets have started to outperform the U.S. And this is a trend I think could actually pick up steam, given the shifting geopolitical landscape driven by a 180-degree turn in how the U.S. chooses to conduct its trade, fiscal and monetary policy. 

So, for those looking for geographic diversification and to lower their country-specific risk, VXUS and its 5 basis point expense ratio seem like an easy bet to me in this current backdrop.