Exchange-traded funds (ETFs) can be a great way to diversify investment exposure. They typically offer a basket of securities that can span across sectors, countries, and even phases of development as far as individual companies are concerned.
Vanguard, one of the world’s leading asset managers, offers a range of ETFs that cover different kinds of investment goals. Whether you’re seeking higher-risk, higher-return instruments, or stable yield in the form of dividends and bonds, Vanguard offers an ETF that would likely meet your needs.
That said, this article will explore the 8 best Vanguard ETFs to buy in 2026. It will consider a range of factors, including the type of diversification, the type of investment returns, and the past performance of the fund.
List of the 8 best Vanguard ETFs to buy in 2026:
- Vanguard S&P 500 ETF (VOO) – Follows the S&P 500 Index, which represents 500 of the largest publicly traded U.S. companies.
- Vanguard Total Stock Market ETF (VTI) – Mirrors the CRSP US Total Market Index, offering exposure to the entire U.S. stock market, including large-, mid-, small-, and micro-cap stocks.
- Vanguard Growth ETF (VUG) – Based on the CRSP US Large Cap Growth Index, focusing on large-cap U.S. companies with strong growth potential.
- Vanguard FTSE Developed Markets ETF (VEA) – Reflects the performance of the FTSE Developed All Cap ex US Index, covering large, mid, and small-cap stocks from developed markets outside the U.S.
- Vanguard Value ETF (VTV) – Invests in companies aligned with the CRSP US Large Cap Value Index, targeting large-cap U.S. stocks with value characteristics.
- Vanguard Total Bond Market ETF (BND) – Seeks to replicate the Bloomberg U.S. Aggregate Float Adjusted Index, which represents the entire U.S. investment-grade bond market, including government, corporate, and mortgage-backed securities.
- Vanguard Dividend Appreciation ETF (VIG) – Focuses on the S&P U.S. Dividend Growers Index, which includes U.S. companies with a consistent history of increasing dividends.
- Vanguard Total International Stock ETF (VXUS) – Provides exposure to the FTSE Global All Cap ex US Index, capturing a wide range of companies from developed and emerging markets outside the U.S.
How to choose the best Vanguard ETF to buy
Choosing the right Vanguard ETF will almost certainly depend on your personal investment goals. With that in mind, prospective investors may want to consider the following:
- Risk factor — Higher volatility can mean higher returns, but it can also mean deeper pullbacks
- Type of returns — Investors should consider whether they want guaranteed returns from fixed-income instruments or more speculative returns based on stock prices
- Type of company — Companies in more established sectors can provide consistent investment returns, while companies in growing or emerging markets may be more volatile
Benefits of investing in ETFs
There are several key benefits of investing in ETFs. They are typically chosen by experienced finance professionals to provide investors with exposure to a selection of companies. This diversification helps to negate downside risk, and outsourcing the selection process to professionals can prove useful due to the quality of information available at the top institutions.
Additionally, ETFs are typically more tax-efficient than investing in mutual funds as they include an in-kind creation and redemption process. This reduces capital gains distributions and can help to minimize tax obligations by extension. To summarize, there are three main benefits of investing in ETFs: tax efficiency, diversification, and professional management.
The Vanguard Group is the largest provider of mutual funds and the second-largest provider of ETFs, with $9.3 trillion in total AUM. (Image: Kristoffer Tripplaar/Sipa USA)
The 8 best Vanguard ETFs to buy in 2026
The following sections will cover the 8 best Vanguard ETFs in more depth, highlighting their key features, past performance, and why they may be strong investment choices for the year ahead.
1. Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF (VOO) is designed to track the performance of the S&P 500 Index. With an average daily trading volume of $3.5 billion, VOO is Vanguard’s most popular exchange-traded fund. By aiming to replicate the performance of the S&P 500, VOO offers diversified exposure across a variety of stock market sectors while exclusively focusing on large-cap companies, many of which are considered some of the best stocks to invest in overall.
VOO is passively managed, giving investors access to a relatively low expense ratio of 0.03%. Passive management implies that the stocks are not actively selected to generate returns, and VOO instead aims to match S&P 500 returns by providing weighted exposure to companies in the index.
VOO Past performance metrics:
| YTD Price Movement | +12.74% |
|---|---|
| 1Y Price Movement | +15.78% |
| 5Y Price Movement | +13.76% |
2. Vanguard Total Stock Market ETF (VTI)
Vanguard Total Stock Market ETF (VTI) is one of Vanguard’s most popular exchange-traded funds, with an average daily volume of 3.2 million units traded ($965m). VTI aims to track the performance of the CRSP US Total Market Index, which includes virtually all segments of the U.S. equity market. As a result, VTI provides broad exposure to the entire U.S. stock market.
VTI provides diversified exposure to small-, mid-, and large-cap stocks. It’s a good all-round choice for an ETF because the downside risks associated with less established companies are offset by a weighted distribution of capital to more established stocks, which helps to reduce volatility and provide more consistent returns.
On balance, VTI has performed very well in recent years. The ETF has generated consistent returns on an annual basis for the past 5 years, providing a +12.56% return over the period. VTI also provides dividends to investors from the companies in the portfolio, but it’s worth noting that dividend returns largely depend on the current market state.
VTI Past performance metrics:
| YTD Price Movement | +12.59% |
|---|---|
| 1Y Price Movement | +15.35% |
| 5Y Price Movement | +12.56% |
3. Vanguard Growth ETF (VUG)
Vanguard Growth ETF (VUG) is an exchange-traded fund designed to provide investors with exposure to U.S. large-cap growth stocks. It aims to track the performance of the CRSP US Large Cap Growth Index, which includes companies that show potential for growth in terms of both their financial reports and position within certain markets.
The VUG weighting system favors companies in industries that have more significant growth potential, such as technology, healthcare, and consumer discretionary, among others. This strategy has produced strong investment returns in recent times, with VUG rising +66% in the past 5 years, which ranks it among the top growth ETFs in 2026.
VUG Past performance metrics:
| YTD Price Movement | +11.18% |
|---|---|
| 1Y Price Movement | +13.21% |
| 5Y Price Movement | +13.88% |
4. Vanguard FTSE Developed Markets ETF (VEA)
Vanguard FTSE Developed Markets ETF (VEA) is designed to provide investors with broad exposure to developed markets outside of the United States. It seeks to replicate the performance of the FTSE Developed All Cap ex US Index, which includes large, mid, and small-cap companies from over 20 countries, including Japan, the United Kingdom, Canada, and major European markets.
VEA is a popular choice for investors looking to diversify internationally while maintaining a low expense ratio of 0.03%. The fund’s holdings are spread across various sectors, with financials, industrials, and consumer discretionary stocks making up a significant portion of the portfolio. This diversification helps reduce country-specific risks while providing exposure to well-established global companies.
The ETF has performed steadily in recent years, benefiting from economic growth in developed nations. However, investors should be aware that currency fluctuations and geopolitical developments can impact its returns. VEA also provides a modest dividend yield, making it an appealing option for those looking to balance international equity exposure with income generation.
VOO Past performance metrics:
| YTD Price Movement | +14.10% |
|---|---|
| 1Y Price Movement | +20.96% |
| 5Y Price Movement | +10.28% |
5. Vanguard Value ETF (VTV)
Vanguard Value ETF (VTV) is an exchange-traded fund designed to provide investors with exposure to U.S. large-cap value stocks. The Value ETF works in a similar way to Vanguard’s Growth ETF, except it places a focus on U.S. companies that may be undervalued at the present moment as opposed to those that lead growing markets.
VTV aims to track the performance of the CRSP US Large Cap Value Index, which includes companies that exhibit value characteristics such as low price-to-earnings ratios and low price-to-book ratios. VTV provides exposure to various value-oriented sectors, including financials, energy, and utilities.
VTV Past performance metrics:
| YTD Price Movement | +14.86% |
|---|---|
| 1Y Price Movement | +18.24% |
| 5Y Price Movement | +12.43% |
6. Vanguard Total Bond Market ETF (BND)
Vanguard Total Bond Market ETF (BND) is designed to track the performance of the Bloomberg Barclays U.S. Aggregate Float Adjusted Index. This index includes a wide range of U.S. investment-grade bonds, which effectively provide exposure to the total U.S. bond market.
Government bonds, corporate bonds, mortgage-backed securities, and other fixed-income instruments are all included in BND. This diversification helps to spread risk across different types of bonds with varying degrees of credit quality.
BND maintains a focus on fixed yield to generate investment returns (as opposed to price appreciation). If you are a more experienced investor and are prepared to invest in individual bonds, check out our selection of the best bond trading platforms.
BND Past performance metrics:
| YTD Price Movement | -2.72% |
|---|---|
| 1Y Price Movement | -1.85% |
| 5Y Price Movement | -0.63% |
7. Vanguard Dividend Appreciation ETF (VIG)
Vanguard Dividend Appreciation ETF (VIG) is an exchange-traded fund designed to provide investors with exposure to U.S. stocks that have a history of consistently increasing their dividends. Specifically, targeting companies that have a track record of increasing dividends can be a savvy investment strategy, as the companies that regularly raise dividends are financially stable and show a commitment to returning value to shareholders.
Vanguard screens the stocks in VIG, with a focus on companies that have strong earnings growth. The ETF provides exposure to various sectors, including consumer goods, healthcare, industrials, and technology. Since it is not concentrated in a specific sector, VIG offers diversification across industries in addition to market cap.
VIG Past performance metrics:
| YTD Price Movement | +7.45% |
|---|---|
| 1Y Price Movement | +9.88% |
| 5Y Price Movement | +10.73% |
8. Vanguard Total International Stock ETF (VXUS)
Vanguard Total International Stock ETF (VXUS) is an exchange-traded fund designed to provide investors with broad exposure to international equity markets. By offering exposure to international stocks, VXUS provides investors with a more globally diversified portfolio when compared to most exchange-traded funds.
VXUS aims to track the performance of the FTSE Global All Cap ex-US Index. This index includes a diverse range of stocks from both developed and emerging markets outside the United States. Primarily, VXUS includes stocks from developed markets in Australia, Japan, Canada, the United Kingdom, and other European countries, as well as from emerging markets in regions such as Africa, Asia, and Latin America.
A key factor to consider when investing in VXUS is that the ETF is exposed to different currencies, as exchange rate fluctuations can impact the fund’s returns. Regardless, VXUS has performed well in recent years and offers regular dividend payments in addition to stock price appreciation.
VXUS Past performance metrics:
| YTD Price Movement | +13.45% |
|---|---|
| 1Y Price Movement | +18.63% |
| 5Y Price Movement | +9.37% |
The bottom line
Vanguard offers a range of exchange-traded funds. It’s important to consider your own personal investment goals when choosing the best Vanguard ETF to buy in 2026, as each one is characterized by its own set of risk parameters and return potential. The top picks on this list offer a balanced set of risk parameters and are known to provide competitive returns.
To compare ETFs across providers, you may want to check our article on the best ETF screeners.