Wall Street experts recommend five core investment funds based on principles of low-cost index investing established by late Vanguard founder Jack Bogle.
For U.S. stocks, Richard M. Rosso, director of financial planning at RIA Advisors, suggests the Vanguard Equity-Income Fund Admiral Shares (VEIRX). The fund holds large-cap companies focused on undervalued stocks with dividends and posted double-digit returns over six years between 2016 and 2025, losing money only in 2018. The annual expense ratio is 0.17%.
Sam Stovall, chief investment strategist at CFRA, recommends the iShares Core U.S. Aggregate Bond ETF (AGG) for U.S. bonds. "In the long term, bonds are a ballast to a portfolio," Stovall says. The fund's holdings are 99.99% investment grade. Recent returns through mid-September showed a loss of almost 1%, likely reflecting inflation and falling government bond prices. The expense ratio is 0.03%.
For emerging market stocks, Todd Rosenbluth, head of research at VettaFi, points to the Vanguard FTSE Emerging Markets Index ETF (VWO), which holds companies including Taiwan Semiconductor Manufacturing, Alibaba Group Holding, and Tencent Holdings. Over three years through mid-September, the fund returned an annualized 17.4%. Expenses are 0.06%.
For commodities, Rosenbluth suggests the ABRDN Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD), which provides diversification in energy, precious metals, and agricultural products. The annual expense ratio is 0.3%. Over the last 12 months through mid-September, the fund was up 34%.
For real estate, Stovall recommends the Vanguard Real Estate Index Fund ETF (VNQ). From 2018 through 2025, it lost money in only two years. Year-to-date through mid-September, the fund gained 8.9%. Expenses are 0.13%.