I don't yet own any Vanguard exchange-traded funds (ETFs) in my portfolio, but there are some I'd be happy to buy.
Vanguard is a world leader in offering low-cost investing options for investors. One of the biggest blocks stopping many people from becoming wealthy are the fees and also the lack of good diversification.
I believe that some of the ETFs offered by Vanguard can give us exactly what we're looking for. That's why I'm interested in the following two ETFs, in this order:
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)
This is the Vanguard offering that focuses on the Asian share market. The Asian region is powering ahead of the rest of the world's growth in terms of GDP growth and the wealth growth of its citizens.
India, China, Taiwan and Hong Kong are just some of the places where some of the businesses in this index are listed.
With around 850 holdings it is diversified, it has a double-digit earnings growth rate and has a price/earnings ratio of less than 11. This means its PEG ratio is around 1, which is an attractive valuation for an index.
I mainly want to buy this ETF because I have very little Asian exposure with my portfolio.
It has a dividend yield of around 3%.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
This Vanguard ETF invests across the global share market, excluding Australia.
It is invested in the US, Japan, UK, France, Canada, Germany and so on. It is invested in nearly 1,600 holdings, which makes it very diverse.
Arguably, you could just invest in this ETF and get all the diversification you need. Its top holdings include some of the best global businesses like Apple, Microsoft, Alphabet, Johnson & Johnson, JP Morgan Chase and Facebook.
I'm interested in this ETF because it would give my portfolio a lot of international diversification.
It currently offers a trailing dividend yield of 2.4%.
Foolish takeaway
Both of these ETFs are low-cost offerings with many attractive portfolio holdings and long-term growth. I am more interested in the Asian ETF because of its cheaper value and higher growth rate. Over time it could be the best performing Vanguard ETF if Asia continues to grow strongly.
