Vanguard Industrials ETF (VIS): Complete Beginner's Guide
Last updated: March 2026 • Vanguard • Industrials
Expense Ratio
0.10%
AUM
$5.0B
Dividend Yield
1.40%
Inception
2004
Beginner Score
8.5/10
What is Vanguard Industrials ETF?
VIS tracks the MSCI US Investable Market Industrials Index, covering companies in aerospace, defense, machinery, construction, and transportation. Industrial stocks are often considered a barometer of economic health since they build and move the things an economy needs. This fund gives investors affordable access to the backbone of American manufacturing and infrastructure.
VIS is managed by Vanguard and has been available since 2004. With $5.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.10%, which means for every $10,000 you invest, you pay approximately $10 per year in management fees.
VIS at a Glance — Key Metrics
| Expense Ratio | 0.10% |
| Total Holdings | 388 |
| P/E Ratio | 24.2 |
| Beta | 1.02 |
| Dividend Yield | 1.40% |
| AUM | $5.0B |
| Inception Year | 2004 |
| Issuer | Vanguard |
Top 10 Holdings in VIS
VIS holds 388 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | GE Aerospace | GE | 5.00% |
| 2 | Caterpillar Inc. | CAT | 4.50% |
| 3 | RTX Corp. | RTX | 4.00% |
| 4 | Union Pacific Corp. | UNP | 3.80% |
| 5 | Honeywell International | HON | 3.50% |
| 6 | Lockheed Martin | LMT | 3.20% |
| 7 | Deere & Company | DE | 3.00% |
| 8 | Boeing Co. | BA | 2.80% |
| 9 | Uber Technologies | UBER | 2.50% |
| 10 | Northrop Grumman | NOC | 2.20% |
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VIS Performance History
Here's how VIS has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.50%
1 Year
15.00%
3 Year
8.00%
5 Year
12.00%
10 Year
11.00%
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VIS scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 388 holdings, and has been available since 2004, giving it a proven track record.
How to Buy VIS — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VIS" — Use the search bar in your brokerage platform to find Vanguard Industrials ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into VIS
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VIS's expense ratio of 0.10%, a $10,000 investment would lose approximately $856 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of VIS
Pros
- ✓Broad diversification across nearly 400 industrial companies from multiple sub-sectors
- ✓Balanced mix of defense, aerospace, transportation, and machinery firms
- ✓Benefits from government infrastructure spending and defense budget increases
- ✓Low expense ratio typical of Vanguard sector funds at just 0.10%
Cons
- ✗Economically sensitive sector that tends to decline ahead of recessions
- ✗No single dominant holding means performance depends on broad industrial health
- ✗Supply chain disruptions and labor shortages can disproportionately impact these companies
Frequently Asked Questions
Is VIS a good ETF for beginners?▾
VIS has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VIS?▾
VIS has an expense ratio of 0.10%. This means for every $10,000 you invest, you pay approximately $10 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VIS?▾
You can invest in VIS with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VIS pay dividends?▾
Yes, VIS pays dividends with a current yield of approximately 1.40%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VIS?▾
The top holdings in VIS include GE Aerospace (5.00%), Caterpillar Inc. (4.50%), RTX Corp. (4.00%), and more. The fund holds 388 total positions, providing broad diversification across many companies.