1 Magnificent Vanguard ETF to Buy Right Now

For some investors, picking individual stocks may be the right choice. But most lay investors would benefit more, from a total return on capital standpoint, from owning a small handful of exchange-traded funds (ETFs). ETFs provide instant diversification, a tax/cost-efficient structure, and much less risk than individual stocks. They can also be incorporated into an options strategy, centering around either hedging or passive income generation, in the exact same manner as individual stocks. The one drawback is that ETFs seldom rank highly on the annual list of top-performing equities.

Nonetheless, ETFs can be potent capital appreciation vehicles in their own right. Thanks to their shareholder-friendly policies and rock-bottom expense ratios, a fair number of Vanguard ETFs frequently beat the broader market on an annualized basis. One example, the Vanguard Growth Index Fund (NYSEMKT: VUG), has quietly outperformed the red-hot Nasdaq Composite Index through the first 11 and a half months of 2023 (see chart below). Here is a brief overview of why this top-performing Vanguard ETF may still be a smart buy right now.