Is Vanguard Good for Beginners? 7 Top Funds to Kickstart Your Investment Journey

As someone who’s been helping folks navigate the investment world for years I get this question all the time “Is Vanguard good for beginners?” The short answer? Absolutely yes! But there’s more to it than just that.

Vanguard has built its reputation on offering low-cost, straightforward investment options that don’t require a finance degree to understand. With over 364 mutual funds and ETFs available, Vanguard gives beginners plenty of options – maybe even too many! That’s why I’ve put together this guide to help you understand why Vanguard is an excellent choice for new investors and which specific funds might be right for your first steps into investing.

Why Vanguard Makes Sense for Beginners

Before diving into specific funds. let’s talk about why Vanguard consistently ranks among the best choices for those just starting their investment journey

• Low costs: Vanguard pioneered the low-cost investment approach, with many funds charging minimal expense ratios (often under 0.1%)
• Simplicity: Many Vanguard funds follow straightforward, easy-to-understand strategies
• Track record: Founded in 1975, Vanguard has established itself as a trusted name in investing
• Accessibility: Many funds have low or no minimum investment requirements
• Education resources: Vanguard offers extensive learning materials for beginners

I’ve personally recommended Vanguard to countless friends who were intimidated by investing The platform’s simplicity and focus on long-term growth aligns perfectly with what most beginners need

7 Best Vanguard Funds for Beginners in 2025

Not all Vanguard funds are created equal when it comes to beginner-friendliness. Some, like the Vanguard Market Neutral Fund (VMNFX), charge high fees (1.4%!) and require $50,000 minimums – definitely NOT beginner-friendly!

Instead, here are the seven best Vanguard funds that I believe offer the ideal combination of simplicity, performance, and accessibility for new investors:

Let’s explore each of these options in more detail:

1. Vanguard 500 Index Fund Admiral Shares (VFIAX)

If there’s one fund that should be in practically every beginner’s portfolio, it’s this one. VFIAX simply tracks the S&P 500 index, giving you instant exposure to 500 of America’s largest companies.

What I love about this fund is its simplicity – it follows a passive approach by simply buying and holding the stocks in the S&P 500. With a tiny 0.04% expense ratio, you’re not losing much to fees. The ETF version (VOO) is even cheaper at just 0.03%!

Over the past decade, VFIAX has delivered impressive 14.6% annualized returns. While past performance doesn’t guarantee future results, it demonstrates the power of simply tracking the broader market.

Henry Yoshida, senior VP at Retired.com, calls the S&P 500 “a staple of every investor’s portfolio” – and I couldn’t agree more.

2. Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

VTSAX takes diversification a step further. Instead of just the S&P 500, this fund gives you exposure to the entire U.S. stock market – over 3,000 companies from giant corporations down to smaller growth companies.

I personally have a chunk of my own portfolio in VTSAX for exactly this reason. It provides incredible diversification while still maintaining that low 0.04% expense ratio. You’re getting exposure to companies of all sizes across all 11 market sectors.

As Yoshida puts it, VTSAX gives you “complete exposure to the entire U.S. stock market, from the ‘Magnificent Seven’ down to thousands of publicly traded small- and mid-cap stocks that could become the next Nvidia of the future.” It’s truly a buy-and-hold-forever kind of fund.

3. Vanguard Wellington Fund Investor Shares (VWELX)

Unlike the first two options, VWELX is actively managed, meaning human fund managers make decisions about which investments to include. Launched way back in 1929, this fund has literally weathered every major economic event of the past century!

The Wellington Fund maintains about two-thirds of assets in stocks (focused on value, quality, and dividend yield) and one-third in bonds (mainly investment-grade corporates). This built-in diversification makes it a great one-fund solution for beginners.

The 0.25% expense ratio is higher than the index funds but still reasonable for active management. If you want a fund with a proven track record through all kinds of market conditions, VWELX definitely fits the bill.

4. Vanguard Target Retirement 2060 Fund (VTTSX)

For the ultimate “set it and forget it” approach, target-date funds like VTTSX are hard to beat. This fund is designed for investors planning to retire around 2060, but similar funds exist for different target dates.

What makes VTTSX special is its automatic risk adjustment. Currently, it holds about 90% stocks and 10% bonds, but as 2060 approaches, it will gradually shift to become more conservative. The fund itself is actually a “fund of funds,” holding four other Vanguard funds covering U.S. stocks, international stocks, and bonds.

With a reasonable 0.08% expense ratio, VTTSX offers a complete portfolio solution in a single fund. Brian Miller, senior investment director at Vanguard, recommends simply picking “the target date closest to when you plan to retire” and letting the fund handle the rest.

5. Vanguard Extended Market ETF (VXF)

The S&P 500 might be the most recognized U.S. benchmark, but it leaves out thousands of smaller companies. VXF fills that gap by tracking the S&P Completion Index – essentially everything NOT in the S&P 500.

With exposure to over 3,400 additional stocks, VXF can be a great complementary fund for investors who already own S&P 500 funds but want more exposure to mid- and small-cap companies.

At a 0.05% expense ratio, VXF remains true to Vanguard’s low-cost philosophy. I think this fund is particularly useful for beginners who want to fine-tune their portfolio beyond the basics.

6. Vanguard Growth ETF (VUG)

For beginners looking to dip their toes into style-based investing, VUG offers exposure specifically to growth stocks. These are companies expected to grow faster than the market average, often in sectors like technology.

VUG’s portfolio has impressive metrics – an average earnings growth rate of 30.6% and return on equity of 33%. However, be aware of the concentration risk: technology makes up about 62% of the fund, with Nvidia and Microsoft alone accounting for nearly 25% of its weight.

With a minimal 0.04% expense ratio, VUG is an efficient way to tilt your portfolio toward growth companies without picking individual stocks.

7. Vanguard Value ETF (VTV)

VTV is essentially the opposite of VUG, focusing on value stocks – companies trading at lower prices relative to their fundamentals. While growth has dominated in recent years, value investing has historically performed well over longer periods.

What I appreciate about VTV is its diversification across sectors. Instead of being tech-heavy like VUG, VTV spreads its holdings more evenly, with financials (23.1%), industrials (16.5%), and health care (13.5%) as its top sectors.

Also charging just 0.04% in expenses, VTV provides an efficient way for beginners to gain exposure to the value side of the market. It could be particularly interesting as a contrarian play after growth’s extended outperformance.

How to Get Started with Vanguard as a Beginner

If you’re convinced Vanguard is right for your investing journey (and honestly, it’s hard to go wrong with them), here’s a simple process to get started:

1. Open an account – You can do this online at Vanguard.com in about 10 minutes
2. Fund your account – Transfer money from your bank account
3. Choose your first fund(s) – Start with one of the simple options above
4. Set up automatic investments – Even small, regular contributions add up over time
5. Stay the course – The most important step is to stick with your plan

My personal recommendation? For absolute beginners, either VTSAX or a target-date fund like VTTSX makes an excellent first investment. Both provide instant diversification and require minimal maintenance.

Bottom Line: Vanguard Is Ideal for Most Beginners

So, is Vanguard good for beginners? In my experience, it’s not just good – it’s great! The combination of low costs, simple fund options, and long-term focus makes Vanguard an ideal place for new investors to build their portfolios.

While some of Vanguard’s 364 funds are definitely not beginner-friendly, the seven options I’ve outlined above provide excellent starting points for investors at any knowledge level. Whether you prefer the simplicity of a target-date fund or want to construct your own portfolio with index funds, Vanguard offers high-quality options at minimal cost.

Remember, the most important thing isn’t picking the absolute perfect fund – it’s starting to invest regularly and sticking with your plan through market ups and downs. With Vanguard’s low-cost approach, more of your money stays invested and working for you over time.

Have you had experiences with Vanguard as a beginner? I’d love to hear your thoughts! Drop me a comment below about which Vanguard fund you started with and how it’s performed for you.

There is no charge to open a Vanguard account, but the minimum to invest depends on the specific investment. You can open a brokerage account with $0, but many mutual funds have a minimum of $1,000, $3,000, or higher, with some sector-specific funds requiring $100,000 or more.