Investments as Gifts

My aunt gave me one share of IBM stock when I turned one year old. When I cashed it out to help pay for college, it was worth $800-- through dividend reinvestment, splits, and increase in share price. I think it is a great idea that I would like to use for the young children that my close family and friends are popping out now.

I'm wondering if anyone else has done this, and if they have recommendations for services to use, or specific shares to give-- I'd imagine any blue-chip stock would be a decent choice, but what about buying shares of an ETF or say a PIMCO Fund? I'd think a managed fund with some diversity would be a better choice than a single company in terms of long-time horizon yield.

Thoughts?

I'm just a small player, pretty much no chance on getting in on that. Besides, I have my doubts as to the long-term prospects for social media type shit.... but that's just me.
To be honest, I'm not sure some of the kids will be going to college. Also, even though I have an advanced degree, I don't think college is appropriate for everyone and I don't want to limit or force them that way.
Vanguard is definitely a company I've been considering-- besides their great returns, I enjoy hearing what Bogle has to say about anything under the sun, and I used to work just down the street from them. Unfortunately, many of their funds have minimum account requirements that exceed what I'm looking to do for these kids. I'm young and well-off, but far from wealthy.