Skip to Content

Index ETFs

Indexing at Vanguard

Vanguard index ETFs

Since introducing the first index fund for individual investors in the United States in 1976, Vanguard has developed a reputation for tight index tracking, rigorous risk controls and low costs. Today, millions of investors around the world rely on us for our high-quality index investments.


Indexing at Vanguard

Our index ETFs are designed to work as part of a core indexing strategy that targets major asset classes.

In Vanguard, we offer a suite of market-capitalization-weighted index ETFs that cover U.S. and international equities and global investment-grade bonds. These ETFs benefit from the same management expertise and benchmark construction best practices that made us a global indexing leader.


Potential advantages of indexing

Low costs


Index investments don't require highly paid teams to analyze and select stocks. Instead, they hold securities until the index itself changes. As a result, they generally have low management and transaction costs. Research has shown lower-cost funds tend to outperform higher-cost funds over the long term.




Index investments generally hold most or all of the securities in their target indexes, and some provide exposure to thousands of securities. Investing in many or all key market segments ensures some participation in stronger areas while also mitigating the impact of weaker areas.




Most index investments have a precise, easily understood objective: to track the performance of a specific index (before fees and expenses).


Tax efficiency


Index investments may provide a tax advantage relative to open-end, actively managed funds because their management tends to require less portfolio turnover. Lower turnover can minimize capital gains distributions, which can, in turn, improve long-term after-tax performance.


Competitive performance


Low-cost, well-managed index investments can be an effective way to achieve competitive returns over the long run.


Interested in our index ETFs?


Explore our lineup of investment products.

What we look for in benchmarks

Read about our benchmarks and their methodology.

Index products and the benchmarks they seek to track have proliferated. But index providers' methodologies vary, so two benchmarks tracking the same market segment may deliver very different results. Selecting an appropriate benchmark is crucial to providing a best-in-class index ETF.

Many index providers use benchmark construction best practices that Vanguard has promoted for years. We believe equity and fixed income benchmarks should:

  • Be based on objective rules, not subjective judgment.
  • Include only shares and bonds that are available on the open market.
  • Reflect market size and style changes through orderly rebalancing.

Additionally, equity benchmarks should use multiple criteria to categorize growth versus value stocks and use buffer zones so that market-capitalization divisions can overlap, with no hard cut-off points, to limit unnecessary turnover.


Benefits of well-designed benchmarks

Using best practices to construct benchmarks can deliver benefits to investors, including:

  • Low portfolio turnover, which leads to lower transaction costs and potentially greater tax-efficiency.
  • Better reflection of targeted markets, which can make index ETFs efficient asset allocation tools.
  • Ability to compare among index products, allowing investors to choose benchmarks based on preference, cost and accessibility.

This document is not intended to provide tax advice or make and exhaustive analysis of the tax regime of the securities described herein. We strongly recommend seeking professional tax advice from a tax specialist.

Your use of this site signifies that you accept our terms and conditions of use and privacy policy.

© 2022 VIGM, S.A. DE C.V. Asesor en Inversiones Independiente (“Vanguard Mexico”). All rights reserved.

This website is for institutional and sophisticated investors only. Vanguard Mexico will not have any responsibility for the use given to the information contained in this website.

Vanguard Mexico registration number: 30119-001-(14831)-19/09/2018. The registration of Vanguard Mexico before the Comisión Nacional Bancaria y de Valores (“CNBV”) as an Asesor en Inversiones Independiente is not a certification of Vanguard Mexico’s compliance with regulation applicable to Advisory Investment Services (Servicios de Inversión Asesorados) nor a certification on the accuracy of the information provided herein. The supervision scope of the CNBV is limited to Advisory Investment Services only and not all services provided by Vanguard Mexico.

The content of this website is solely for informational purposes and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any security, nor shall any such securities be offered or sold to any person, in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. Reliance upon information in this website is at the sole discretion of the recipient.

Securities information provided in this website must be reviewed together with the offering information of each of the securities which may be found on Vanguard’s website: or

Vanguard Mexico may recommend products of The Vanguard Group Inc. and its affiliates, and such affiliates and their clients may maintain positions in the securities recommended by Vanguard Mexico.

The information contained in this website derived from third-party sources is deemed reliable, however Vanguard Mexico and The Vanguard Group Inc. are not responsible and do not guarantee the completeness or accuracy of such information.

You may leave Vanguard South America’s website when you access certain links on this website. In so doing, you may be proceeding to the site of an organization that is not regulated under the Mexican regulation. Vanguard Mexico has not examined any of these websites and does not assume any responsibility for the contents of such websites nor the services, products or items offered through such websites.

The information contained in this website should not be considered as an investment recommendation, a recommendation can only be provided by Vanguard Mexico upon completion of the relevant profiling and legal processes.

This website is for educational purposes only and does not take into consideration your background and specific circumstances nor any other investment profiling circumstances that could be material for taking an investment decision. We recommend getting professional advice based on your individual circumstances before taking an investment decision.

The information contained herein does not constitute an offer or solicitation and may not be treated as such in any jurisdiction where such an offer or solicitation is against the law, or to anyone for whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so.