3 Low Cost Vanguard ETFs That Make Retirement Investing Easier

I’ve always believed that long-term buy-and-hold investing is the best way to build wealth. While there’s a natural tendency to focus on short-term investing news and events, putting all of that aside and letting quality assets grow over time is the simplest (and often times most successful) solution.

Vanguard is a great broker for almost any investing goal, but it’s especially helpful when saving for retirement. Almost every exchange-traded fund (ETF) in its lineup is broadly diversified, ultra-low cost, and can serve as the cornerstone of a retirement portfolio.

In most cases, you don’t need a dozen funds or more to be diversified. The broader-market Vanguard ETFs often hold hundreds, if not thousands, of different stocks or bonds in a single product. Use just a few of them targeting major asset classes and you have just about everything you need to get to the retirement finish line.

Here’s a sample Vanguard portfolio I like that uses three ETFs. If you want simplicity and a portfolio that focuses entirely on U.S. stocks and bonds, this trio checks the boxes. Since I consider them all core portfolio building blocks, you can use them whether you’re in retirement or still decades away.

1. Vanguard S&P 500 ETF

The Vanguard S&P 500 ETF (VOO 0.56%) is about a pure core U.S. equity ETF as there is. It holds 500 of the largest domestic companies and makes for an ideal core portfolio holding. With $870 billion in assets, it’s the largest ETF in the world and charges an expense ratio of just 0.03%.

As I’ve noted many times in the past, I prefer to use the Vanguard Total Stock Market ETF for my core U.S. equity allocation. I like to have mid- and small-cap stocks in my portfolio in addition to large- and mega-cap names. But I certainly understand why people prefer just the S&P 500. It has unquestionably performed better over the past several years and there’s a degree of comfort involved in just owning the biggest and most well-established companies.

2. Vanguard Dividend Appreciation ETF

Dividend stocks aren’t necessarily flashy. But as we’ve learned so far in 2026, they work well in market environments where the economic outlook is a little more questionable and investors aren’t so bullish.

The Vanguard Dividend Appreciation ETF (VIG 0.25%) invests in U.S. stocks that have increased their annual dividend for at least 10 straight years. Dividend growth stocks are great for portfolios because the companies have demonstrated a commitment to rewarding shareholders over time and to continue growing that dividend for many years. Plus, they are likely demonstrating the financial health to sustain it.

While I think the Vanguard Dividend Appreciation ETF’s strategy could be improved, I don’t think there’s any question that it targets the durable, financially healthy companies that are ideal investments for retirement.

3. Vanguard Total Bond Market ETF

The Vanguard Total Bond Market ETF (BND 0.10%) is an underappreciated fund. Bonds have gotten a bad reputation for their lack of returns over the past several years and their inability to provide much downside protection from stocks during the 2022 bear market.

But bonds are still a valuable core long-term holding. This fund’s 4.2% yield on a portfolio of Treasuries, mortgage-backed securities, and investment-grade corporate bonds provides a meaningful income component that can enhance returns over time. Plus, in many circumstances, it helps to mitigate some of the volatility from riskier asset classes.

There are a few factors that this three-ETF portfolio leaves out. There’s no international exposure to be had here, so you’d need to add something like the Vanguard Total International Stock ETF or the Vanguard Total International Bond ETF. If you want to add junk bond exposure, the Vanguard High Yield Active ETF would do the trick.

But using any or all of the Vanguard S&P 500 ETF, Vanguard Dividend Appreciation ETF, and the Vanguard Total Bond Market ETF will get you well on your way to a well-funded, secure retirement.