Founded in May 1975 by legendary investor John C. Bogle, the Vanguard Group has grown into one of the world’s leading investment management firms. Headquartered in Malvern, PA, Vanguard manages approximately $10.1 trillion in assets as of April 30, 2025.
In early 2025, Vanguard delivered perhaps its most investor-friendly move to date, across 87 of its funds. Spanning bond, equity, international and money market categories, it implemented the largest-ever reduction in expense ratios, lowering costs by between one and six basis points. This landmark fee cut underscores a central advantage of Vanguard’s philosophy — low costs that enhance long-term investor returns. Its unique ownership structure, where the company is owned by its funds rather than external shareholders, empowers Vanguard to prioritize investor outcomes above outside profit motives, enabling continued cost reductions and better alignment with shareholder interests.
Interest rates have not come down in 2025, as was expected earlier. Amid these higher interest rates and market volatility, Vanguard is also emphasizing its fixed-income offerings. The firm believes that bonds are well-positioned to provide attractive income and higher returns, especially if downside economic risks materialize. This strategic focus aligns with its view that the era of “higher-for-longer” interest rates will persist, setting the foundation for solid fixed-income returns over the next decade.
Thus, in 2025, buying Vanguard mutual funds remains a smart choice for both new and experienced investors due to their combination of low costs, broad diversification and a strong reputation for investor-first practices. Beyond low fees, the funds offer built-in diversification across asset classes, sectors and global markets. Whether an investor is looking for U.S. large-cap exposure, international equities, or fixed-income options, Vanguard has a range of funds to match most investment goals.
Hence, it will be prudent to invest in Vanguard mutual funds if one is seeking stability and growth potential in a market that is expected to remain volatile for a while. Astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.