My top 3 Vanguard ETFs for October

October is here, and investors looking to put fresh money to work have plenty of Vanguard exchange-traded funds (ETFs) to choose from.

For me, the best choices do not all need to play the same role.

These are three Vanguard ETFs I would be happy to buy this month, each for a different reason.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The VDHG ETF is probably the simplest choice of the three. Rather than giving investors exposure to one country or sector, it bundles together Australian shares, international shares, emerging markets, small caps, and bonds in one investment.

Vanguard currently targets 90% of the portfolio towards growth assets and 10% towards defensive assets. The fund ultimately provides exposure to more than 16,000 securities.

I like the Vanguard Diversified High Growth Index ETF for investors who want broad diversification without having to decide how much money should go into Australia, overseas markets, or fixed income themselves.

Vanguard also manages the rebalancing, so the ETF is designed to keep returning towards its target allocation over time.

For me, that makes the VDHG ETF a strong option for someone who wants a long-term investment that can largely look after itself.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The V500 ETF gives investors exposure to around 500 of the largest Wall Street-listed companies, representing roughly 80% of the value of the American share market.

That means investors are putting money behind many of the businesses leading some of the biggest areas of global growth.

NVIDIA, for example, sits at the heart of the artificial intelligence (AI) infrastructure boom, while Microsoft has exposure to cloud computing, software, and AI. Both are among the ETF’s largest holdings.

Importantly, the fund extends well beyond technology. The S&P 500 also includes large healthcare, financial, industrial, and consumer businesses.

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

The VAE ETF is the more targeted pick on my October list. It invests across Asian markets while excluding Japan, Australia, and New Zealand.

What I like is that this gives investors exposure to a part of the world that can look quite different from the US-heavy portfolios many Australians already own.

Technology is still an important part of the story. Taiwan Semiconductor Manufacturing Co, Samsung Electronics, and SK Hynix are currently the fund’s three largest holdings. Together, they give the VAE ETF meaningful exposure to the semiconductor industry that underpins AI, smartphones, data centres, and other areas of technology.

The ETF also reaches into other parts of the Asian economy, including Chinese internet and consumer businesses.

I think that makes the Vanguard FTSE Asia ex Japan Shares Index ETF a great way to add another source of long-term growth without simply buying more US shares.

Foolish takeaway

If I were adding to my ETF holdings in October, I would be looking for something that genuinely adds to what I already own.

That is why these three stand out to me. Each offers a different route to long-term growth, and I would be happy to own any of them for many years.

The post My top 3 Vanguard ETFs for October appeared first on The Motley Fool Australia.

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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 positions in and has recommended Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.