The Best Vanguard ETF to Invest $1,000 In Right Now

Core Viewpoint - The Vanguard Utilities ETF is identified as a favorable investment option amidst a crowded market of ETFs, particularly for those looking to invest $1,000 now [7]. Group 1: ETF Performance and Selection - Vanguard offers a wide range of 97 ETFs, which can be overwhelming for investors [1]. - The top-performing Vanguard ETFs this year are primarily international funds, with the Vanguard International High Yield Dividend ETF and Vanguard FTSE Europe ETF leading the list [3]. - Many of Vanguard's best-performing ETFs have high valuations, with the Vanguard S&P 500 ETF's price-to-earnings (P/E) ratio at 27.6, significantly above the historical average of 16.1 [5]. Group 2: Vanguard Utilities ETF Analysis - The Vanguard Utilities ETF (VPU) owns 69 U.S. utility stocks, including major companies like NextEra Energy and Duke Energy, and has shown a year-to-date performance increase of around 15% [8]. - The P/E ratio of the Vanguard Utilities ETF is 21.4, which is lower than the S&P 500's earnings multiple, indicating a more favorable valuation [9]. - The ETF is expected to perform well if the stock market continues to rise, particularly due to the increasing demand for power from data centers supporting artificial intelligence [10]. Group 3: Economic Considerations - In the event of a stock market downturn, utility stocks are typically seen as safe havens, with most utilities having low exposure to tariff impacts [11]. - The Vanguard Utilities ETF is considered a "happy medium" investment, likely to perform better than many equity ETFs during economic downturns while potentially offering lower returns compared to other Vanguard ETFs in a strengthening economy [12].