3 Vanguard ETFs for smart investors to buy in February

When a new month rolls around, I like to think about whether there are simple, sensible additions that can strengthen a portfolio over the long term. Not flashy trades, just solid building blocks that do their job quietly in the background.

These are three Vanguard exchange-traded funds (ETFs) I think smart investors could look at buying in February.

Vanguard Global Value Equity Active ETF (ASX: VVLU)

The Vanguard Global Value Equity Active ETF stands out for me because it offers something different from the growth-heavy portfolios many investors already own.

Rather than chasing the most popular stocks, this ETF uses an active, rules-based approach to focus on companies trading at lower valuations relative to fundamentals like earnings, cash flow, and book value. That makes it a useful counterbalance when expensive growth stocks dominate market leadership.

I like the Vanguard Global Value Equity Active ETF as a way to introduce valuation discipline into a portfolio without having to pick individual global value stocks. It’s not about timing a rotation perfectly, it’s about diversification and improving risk-adjusted returns over time.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF is a higher-risk option, but one that can make sense for investors with a long time horizon.

The ETF provides exposure to fast-growing Asian economies, including China, India, Taiwan, and South Korea. These markets come with more volatility, but they also offer growth drivers that are hard to find in developed markets, particularly in technology manufacturing, financial services, and consumer demand.

I wouldn’t build a portfolio around the VAE ETF alone, but as a satellite holding alongside broader global exposure, it can add a different growth engine that isn’t tied to the US or Australian cycles.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is still one of the best core ETFs available on the ASX, in my opinion.

It gives exposure to around 1,300 stocks across developed markets outside Australia, including the US, Europe, and Japan. Importantly, it provides access to sectors like technology and healthcare that are underrepresented on the ASX.

What I like most about the VGS ETF is its simplicity. It’s low cost, broadly diversified, and designed to compound over long periods. If I had to pick just one global equity ETF to hold for years, this would be very hard to go past.

Foolish takeaway

Smart investing doesn’t need to be complicated. A mix of global value, Asian growth, and broad international exposure can go a long way toward building a resilient portfolio.

The VVLU ETF adds valuation discipline, the VAE ETF introduces long-term regional growth, and the VGS ETF provides a dependable global core. Together, they form a balanced trio that I think makes a lot of sense heading into February and beyond.

The post 3 Vanguard ETFs for smart investors to buy in February appeared first on The Motley Fool Australia.

More reading

• Why ASX ETFs are a good place to start for beginner investors
• 3 excellent Vanguard ETFs I would buy with $3,000
• 5 ASX ETFs for genuine global exposure
• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• Why I think beginners would love these Vanguard ETFs

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.