Back to News
investment

3 Magnificent Vanguard ETFs I'm Stocking Up On in 2026 and Holding Forever

The Motley Fool
Loading...
5 min read
1 views
0 likes
3 Magnificent Vanguard ETFs I'm Stocking Up On in 2026 and Holding Forever

Summarize this article with:

Now can be a great time to stock up on ETFs.The right exchange-traded fund (ETF) can be life-changing, with the potential to build substantial wealth over time with minimal effort on your part. As we head into the new year, now is a fantastic time to review your portfolio and consider adding some new investments. While your strategy will be unique to your situation, there are three Vanguard ETFs I'm stocking up on in 2026 and holding for as long as possible. 1. Vanguard S&P 500 ETF Whether you're new to investing or simply want an investment that's all but guaranteed to thrive over time, the Vanguard S&P 500 ETF (VOO 0.28%) can be a fantastic choice. The S&P 500 (^GSPC 0.24%) contains 500 of the largest and strongest U.S. stocks, many of which are industry leaders with decades of experience navigating economic turbulence. One advantage of investing in an S&P 500 ETF is instant diversification. This fund contains hundreds of stocks across all sectors of the market, and that variety can help reduce the impact of volatility. ExpandNYSEMKT: VOOVanguard S&P 500 ETFToday's Change(-0.28%) $-1.75Current Price$624.21Key Data PointsDay's Range$620.65 - $626.2252wk Range$442.80 - $634.13Volume7.5K Also, because this ETF only contains large-cap stocks, that can further mitigate risk. Large companies are generally more stable than their smaller counterparts, making them more likely to pull through market downturns.Advertisement 2. Vanguard Growth ETF One potential downside of the S&P 500 ETF is that it can only earn average returns. That type of investment is designed to follow the market, so it can't beat the market. If you're looking for faster-than-average growth, a fund like the Vanguard Growth ETF (VUG +0.24%) could be a smart option. Like the S&P 500 ETF, the Vanguard Growth ETF only contains large-cap stocks. However, it's focused on stocks that have the potential for above-average returns. It's less diversified than the S&P 500, containing only 160 stocks, but its narrower focus could help you earn more over time. ExpandNYSEMKT: VUGVanguard Index Funds - Vanguard Growth ETFToday's Change(0.24%) $1.18Current Price$484.04Key Data PointsDay's Range$479.85 - $485.1752wk Range$316.14 - $505.38Volume61 Over the past decade, the Vanguard Growth ETF has generated an average annual return of 17.22%. For comparison, the Vanguard S&P 500 ETF has earned an average annual return of 14.58% during that period. This fund carries more risk than the S&P 500 ETF, as it's less diversified and more focused on growth stocks -- which can be more volatile than more established companies. However, the Vanguard Growth ETF can be a smart middle ground for investors seeking higher returns while maintaining the relative safety of larger stocks. 3.

Vanguard Information Technology ETF For those looking to maximize their returns, an industry-specific ETF can help zero in on a specific sector of the market.

The Vanguard Information Technology ETF (VGT +0.16%) contains 322 stocks, all of which hail from the technology industry. This ETF is the highest risk of the three, as it's solely focused on one industry. The tech sector, specifically, tends to be more volatile than other sectors of the market, further increasing risk. Be prepared, then, for more significant ups and downs when investing in this ETF. ExpandNYSEMKT: VGTVanguard Information Technology ETFToday's Change(0.16%) $1.17Current Price$745.92Key Data PointsDay's Range$739.80 - $747.8752wk Range$451.00 - $806.99Volume253 The payoff for higher risk, however, is higher potential returns. This fund has earned an average return of 22.18% per year over the last decade, surpassing both the Vanguard Growth ETF and S&P 500 ETF. If you were to invest $200 per month in each fund, while earning average annual returns in line with each ETF's 10-year history, here's approximately how much you could accumulate over time: Number of YearsTotal Portfolio Value: VOO-14.58% Avg. Annual ReturnTotal Portfolio Value: VUG-17.22% Avg. Annual ReturnTotal Portfolio Value: VGT-22.18% Avg. Annual Return15$110,000$137,000$208,00020$234,000$320,000$584,00025$478,000$726,000$1,608,000 Data source: Author's calculations via investor.gov. There are no guarantees that any of these investments will continue earning these types of returns, but it can still be helpful to see how far different average annual returns can go over decades. Whether you're looking for a relatively safe investment to hedge against risk or a powerhouse ETF with a history of beating the market, these three Vanguard ETFs can be smart buys in 2026 and beyond.About the AuthorKatie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and investing fundamentals. Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands. Her work has appeared in USA Today, Inc magazine, and other authoritative media outlets. She holds a bachelor’s degree in business administration and management from Illinois Wesleyan University.TMFKatieBrockmanRead NextDec 13, 2025 •By Katie BrockmanVGT vs. FTEC: How These Two Similar Tech ETFs Compare on Risk, Performance, and ScaleDec 13, 2025 •By Katie BrockmanVGT vs. SOXX: Should Investors Choose a Broad Tech ETF or a Niche Semiconductor Fund?Dec 11, 2025 •By Katie BrockmanBroad Tech Exposure vs. Generative AI: Is VGT or CHAT a Better Option for Investors?Dec 11, 2025 •By Katie Brockman3 Unstoppable Growth ETFs to Stock Up On in 2026 and BeyondDec 9, 2025 •By Trevor JennewineThe 2 Best Vanguard Sector Index Funds to Buy Ahead of 2026, According to Wall StreetDec 6, 2025 •By Chris NeigerIs This the Worst-Performing Tech ETF?

Read Original

Source Information

Source: The Motley Fool