Vanguard is best known for low-cost mutual funds, but its exchange-traded funds may be a better bet. Vanguard’s 52 ETFs track the same benchmarks as its passively managed index mutual funds, and in some cases the ETFs charge lower annual fees. Vanguard’s Total Stock Market Fund ETF (symbol VTI), for example, boasts an annual expense ratio of 0.05%—meaning shareholders pay a nickel per year for each $100 invested, compared with 0.17% for the Investor share class of the mutual fund.
