3 Vanguard ETFs to Buy in 2022

Investors looking to buy and hold for the long term should consider replacing some of their stock picks with these ETFs.

| More on:
ETF chart stocks

Image source: Getty Images

I’m a big advocate of passive investing using exchange-trade funds (ETFs), especially those that track broad market stock indexes. There is ample evidence out there that shows holding a low-cost, globally diversified stock portfolio will beat the majority of stock pickers and day traders.

The lesson here is to keep your investing simple and boring. If you want excitement, go to the casino. While stock picking can be fun, it is also time consuming, stressful, and prone to underperformance. When it comes to a long-term, buy-and-hold mentality, using ETFs is an excellent way to invest for retirement.

Today, I’ll be reviewing three great, low-cost ETFs from Vanguard, covering the worldwide, U.S., and Canadian stock markets, respectively.

Worldwide diversification

Vanguard All-Equity ETF Portfolio (TSX:VEQT) is possibly one of the best 100% equity ETFs available to Canadian investors, granting instant exposure to over 13,526 stocks and covering the entire world’s investable market.

With VEQT, you never have to try and determine which stocks will do well, which market cap will gain more, which sector will outperform, or which country will pull ahead. It holds large-, medium-, and small-cap stocks from every sector and nearly every country around the world.

Currently, VEQT also pays an annual dividend yield of 1.40% and has assets under management (AUM) of $1.78 billion. The fund costs a management expense ratio (MER) of 0.24% to hold, which is extremely affordable for an all-in-one ETF portfolio that re-balances itself.

Betting on the U.S.

Investors bullish on the U.S. stock market can buy Vanguard S&P 500 Index ETF (TSX:VFV). VFV is the top Canadian ETF for tracking the S&P 500, with $6.5 billion AUM and a high volume traded daily.

Currently, the fund holds 512 U.S. stocks, with the largest concentration in information technology, followed by consumer discretionary, healthcare, financials, communications, industrials, consumer staples, energy, real estate, materials, and utilities.

Being a Canadian-domiciled U.S. ETF, VFV is not currency hedged, meaning that its value can and will fluctuate based on the CAD-USD exchange rate. VFV costs a low MER of 0.08% to hold, which makes it one of the most affordable ETFs for U.S. equity exposure for Canadian investors out there.

Betting on Canada

Investors looking to track the broad Canadian stock market can do so with Vanguard FTSE Canada All Cap Index ETF (TSX:VCN). VCN holds 182 large-, mid-, and small-cap stocks, with concentrations in the financial and energy sectors.

Currently, VCN costs a MER of just 0.05% to hold, which is extremely cheap and as affordable as it gets for Canadian investors. The 12-month dividend yield stands at a decent 2.50%.

Overweighting VCN in your portfolio (called a home-country bias) can have many benefits for Canadian investors, including lower volatility, reduced currency risk, and better tax efficiency.

The Foolish takeaway

You can’t go wrong with either of these three ETFs. Consistently buying, reinvesting dividends, and holding them for the long term will set you up for a six-figure retirement nicely. Vanguard has done a fantastic job of keeping fees low and holdings diversified for investors.

Should you invest $1,000 in Choice Properties Real Estate Investment Trust right now?

Before you buy stock in Choice Properties Real Estate Investment Trust, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Choice Properties Real Estate Investment Trust wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Tony Dong has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

shoppers in an indoor mall
Dividend Stocks

6.2% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

This dividend yield may not be double digit, but it's far safer than many others out there.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

1 Magnificent TSX Value Stock Down 28% I’m Buying With Confidence

goeasy is a rare combination of value, income, and growth worth considering today for high-risk, long-term investors.

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

My Top 2 TSX Tech Stocks: Smart Bets for Canadian Technology Exposure

Here's why Kinaxis (TSX:KXS) and Shopify (TSX:SHOP) remain two of my top TSX tech stock picks in this current market,…

Read more »

Trans Alaska Pipeline with Autumn Colors
Dividend Stocks

This Canadian Pipeline Paying 5.5% is My Top Pick for Income Investors

Pembina Pipeline stock’s 5.5% yield, strong contracts, and minimal tariff impact make it a top pick for income investors seeking…

Read more »

customer uses bank ATM
Stocks for Beginners

How to Approach CIBC Stock in 2025

CIBC stock is one of the best banks out there, and yet it doesn't really get the attention it deserves.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

I’d Put $7,000 in This Reliable Monthly Dividend Payer – Immediately

The following three monthly paying dividend stocks can deliver a reliable passive income.

Read more »

stocks climbing green bull market
Top TSX Stocks

Where I’d Invest $13,000 in the TSX Today

TSX stocks that are benefitting from strong fundamentals and offer investors good entry points today include Enbridge and Aecon.

Read more »

Happy shoppers look at a cellphone.
Dividend Stocks

The Only TSX Stock I’d Buy and Hold for the Next 20 Years

This TSX stock offers growth potential, consistent income, and solid value. These characteristics will result in above-average returns.

Read more »