Best ETFs To Buy Now In 2026

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The best ETFs to buy now are:

Vanguard Total Stock Market ETF.
Invesco QQQ Trust (QQQ).
Vanguard S&P 500 ETF.
SoFi Select 500 ETF.
SPDR S&P 500 ETF.
iShares Core S&P Small-Cap ETF.
Vanguard Growth ETF.
Schwab U.S. Dividend Equity ETF.
Vanguard Total International Stock ETF.

Like mutual funds, exchange-traded funds (ETFs) are pooled investment securities. The majority of ETFs track specific indexes, sectors, commodities, or other assets. However, unlike mutual funds, ETFs can be traded on stock exchanges just like regular stocks. The price of a commodity can be tracked by an ETF, or a large and diverse collection of securities can be tracked by one. An ETF can even track a specific investment strategy.

Top 9 ETFs to invest in right now

Exchange-traded funds (ETFs) offer investors diversified exposure to various sectors and asset classes, making them a strategic choice for building a robust investment portfolio. Here are the top ETFs to invest in right now.

1. Vanguard Total Stock Market ETF (VTI)

Tracks the entire U.S. stock market, covering large, mid, and small-cap stocks.
Expense Ratio: 0.03%.
Ideal for long-term diversified portfolios.

Vanguard Total Stock Market ETF is the best overall ETF for investors. At just 0.03%, it replicates the returns of the entire U.S. stock market. A large-cap, medium-cap, and small-cap company can be invested instantly without a minimum investment. By combining this fund with a bond fund, investors can set their stock-bond allocation easily as part of a simple, two-fund portfolio.

2. Invesco QQQ Trust (QQQ)

Tracks the Nasdaq-100 Index, focusing on large-cap tech stocks.
Expense ratio: 0.19%.
Ideal for investors seeking concentrated exposure to the tech sector and growth-oriented companies.

The Invesco QQQ Trust (ticker: QQQ) is an exchange-traded fund (ETF) that tracks the Nasdaq-100 Index, comprising 100 of the largest non-financial companies listed on the Nasdaq stock exchange. The fund's top holdings include major technology firms such as Apple, Microsoft, and Amazon, making it a popular choice for investors seeking exposure to the tech sector

3. Vanguard S&P 500 ETF (VOO)

Tracks the S&P 500 Index, focusing on the largest U.S. companies.
Expense Ratio: 0.03%.
Suitable for broad U.S. equity exposure.

The Vanguard S&P 500 ETF (VOO) is a prominent exchange-traded fund that seeks to replicate the performance of the S&P 500 Index, encompassing 500 of the largest U.S. companies. A minimal expense ratio means investors pay just $0.30 annually for every $1,000 invested, enhancing net returns over time. VOO's substantial net assets and diversified holdings make it a cornerstone in many investment portfolios.

4. SoFi Select 500 ETF (SFY)

Invests in 500 leading U.S. companies.
Expense ratio: 0.05%.
Focus. Growth-oriented allocation.

The SoFi Select 500 ETF (SFY) is an exchange-traded fund that seeks to track the performance of the Solactive SoFi US 500 Growth Index, comprising 500 of the largest U.S.-listed companies. The fund's top holdings include major technology companies. SFY has demonstrated strong performance, with a year-to-date return of 33.22% and a 1-year return of 37.33% as of December 2024.

5. SPDR S&P 500 ETF (SPY)

Tracks the S&P 500 Index, offering broad U.S. equity exposure.
Expense ratio: 0.0945%.
Popular for day trading and portfolio diversification.

The SPDR® S&P 500® ETF Trust (SPY) is an exchange-traded fund that seeks to mirror the performance of the S&P 500® Index, encompassing large-cap U.S. equities across all eleven GICS sectors. Introduced in January 1993, SPY holds the distinction of being the first ETF listed in the United States. Its low expense ratio, combined with its broad market exposure, makes SPY a popular choice for investors seeking to invest in the U.S. stock market.

6. iShares Core S&P Small-Cap ETF (IJR)

Tracks U.S. small-cap stocks with market caps between $250M-$2B.
Expense ratio: 0.06%.
Focus: U.S. growth and innovation stocks.

The iShares Core S&P Small-Cap ETF (IJR) seeks to replicate the performance of the S&P SmallCap 600 Index, providing exposure to the small-cap U.S. With over 600 holdings, IJR offers broad diversification across various sectors, including financials, industrials, and consumer discretionary. The fund's expense ratio is 0.06%, making it a cost-effective option for investors seeking small-cap exposure.

7. Vanguard Growth ETF (VUG)

Focuses on large-cap U.S. growth stocks.
Expense ratio: 0.05%.
Key Holdings: Apple, Microsoft, Tesla.

The Vanguard Growth ETF (VUG) seeks to replicate the performance of the CRSP US Large Cap Growth Index, focusing on large-cap U.S. growth stocks. As of September 30, 2024, VUG has a low expense ratio of 0.05%, making it a cost-effective choice for investors. VUG's diversified portfolio and minimal fees make it an attractive option for those seeking exposure to growth-oriented companies.

8. Schwab U.S. Dividend Equity ETF (SCHD)

Focuses on high-dividend-paying U.S. companies.
Expense Ratio: 0.06%.
Ideal for dividend-income portfolios.

The Schwab U.S. Dividend Equity ETF (SCHD) is a well-established fund that tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-yielding U.S. companies with a consistent history of dividend payments. The ETF offers a dividend yield of approximately 3.5%, providing investors with a steady income stream. With over $67 billion in assets under management, SCHD is among the largest dividend-focused ETFs in the market.

9. Vanguard Total International Stock ETF (VXUS)

Offers exposure to international stocks from developed and emerging markets.
Expense Ratio: 0.07%.
Balanced between growth and value.

The Vanguard Total International Stock ETF (VXUS) offers investors broad exposure to international equity markets, encompassing both developed and emerging economies. The fund maintains a low expense ratio of 0.07%, making it a cost-effective option for diversifying portfolios beyond U.S. borders. With a diversified portfolio of over 8,000 international stocks, VXUS serves as a comprehensive vehicle for investors seeking global market exposure.

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Is it a good idea to buy ETFs now?

ETFs are ideal for beginners and experts due to their low cost, accessibility, and reduced risk compared to individual stocks. They allow you to invest in multiple stocks simultaneously, enabling faster portfolio diversification.

Diversification. ETFs offer broad exposure to multiple assets, reducing portfolio risk.
Transparency. Most ETFs disclose holdings daily, unlike mutual funds reporting quarterly.
Trade flexibility. ETFs trade like stocks, allowing intraday buying and selling.
Low cost. Index ETFs like VTI and SPY have low expense ratios.
Small investment minimums. Start with just one share or even fractional shares.

Capital gains tax. Some ETFs distribute taxable gains, so check how yours manages them.
Market risk. ETFs tracking major indexes can lose value during market downturns.

How to find the best ETFs to buy now?

What factors to consider when choosing the best ETFs to buy now

In a bear market, it is best to buy ETFs that have good long-term prospects. Below are the many factors that can significantly affect the prices of ETFs.

Supply and demand. Prices rise when buyers outnumber sellers and fall when sellers dominate.
Economic issues. Macroeconomic events impact ETFs linked to market indices through investor sentiment and market outlook.
Market cycles. Volatility creates arbitrage opportunities for market makers, affecting ETF pricing.
Inflation: Higher inflation can lower ETF multiples, while low inflation often supports higher valuations.
Political news. Elections, legislative uncertainty, and geopolitical events cause market volatility, impacting ETF prices.

When to buy ETFs for long-term

Buy during market corrections. Buy when the market dips by 10% or more to grab ETFs at lower prices and get a better long-term return.
Time purchases around dividend payouts. Check the ETF’s dividend schedule and buy before the ex-dividend date to lock in the next dividend.
Start small in volatile markets. If things seem shaky, buy in chunks over a few months to avoid risking all your money at once.
Consider seasonality trends. The market usually does better from November to April. Take advantage of this trend for better returns.
Invest when interest rates peak. Rising rates can push ETF prices down. Buy fixed-income ETFs when the central bank hints at lower rates ahead.

Are ETF investments profitable?

The stock market has historically grown despite corrections, with the S&P 500 averaging 9-10% annually. While corrections pose risks, ETFs offer a balanced investment approach. Going long means buying an ETF to profit from rising prices, while shorting earns money when prices drop. ETFs are generally less volatile than individual stocks, making them ideal for long-term investors. However, profitability depends on the specific ETFs chosen.

I review and adjust my portfolio regularly because the market never stays the same

When choosing an ETF to buy now, watch how different sectors are performing based on the market. If inflation is climbing, go for funds that benefit from rising commodity prices or inflation-protected bonds. If tech is booming, check out tech ETFs in growing industries like semiconductors or cloud computing. This keeps your portfolio ready for what’s next rather than chasing past gains.

Another smart tip is checking how often an ETF is traded. ETFs that trade a lot are easier to buy or sell without paying extra in spreads. Compare funds in the same sector and pick the one with the lowest trading costs. Lower trading fees mean more money in your pocket over time.

Conclusion

In summary, selecting the best ETFs in 2026 requires a strategic blend of performance analysis and risk management. By focusing on funds with robust track records and aligning with emerging market trends, investors can optimize returns while safeguarding their portfolios. For example, considering ETFs like those tracking technology or green energy sectors can offer both growth and diversification. The most powerful takeaway is this: thoughtful ETF selection today paves the way for resilient wealth tomorrow. Make every investment decision count by combining expert insights with your own financial goals.

FAQs

What are some strategies to balance risk when investing in the best ETFs to buy now in 2026?

Balancing risk when investing in the best ETFs to buy now in 2026 involves diversifying across asset classes, sectors, and geographic regions. Combining broad-market ETFs with sector-specific, growth, or dividend-focused ETFs can help smooth returns. Regular portfolio reviews and adjusting allocations based on market conditions also contribute to effective risk management.

How do dividend-focused ETFs compare to growth-focused ETFs for long-term investors?

Dividend-focused ETFs primarily invest in companies with a history of paying stable or rising dividends, providing regular income, which may appeal to income-oriented or conservative investors. Growth-focused ETFs, by contrast, invest in companies poised for above-average earnings growth, which can offer higher capital appreciation but typically involve more volatility and less immediate income.

What role do expense ratios play when comparing the top ETFs to buy in 2026?

Expense ratios are the annual fees that ETFs charge, expressed as a percentage of assets. Lower expense ratios reduce the drag on returns over time, making such ETFs more efficient for long-term investors. Comparing expense ratios among top ETFs is crucial, as even small differences can accumulate and impact overall investment growth.

How can investors use sector exposure to tailor their ETF portfolios in 2026?

Investors can tailor ETF portfolios by selecting funds with sector exposure aligned to their market outlook or risk preferences. For example, investing more in technology ETFs if expecting tech sector growth, or adding small-cap or international ETFs for broader diversification. Adjusting sector weights allows investors to address changing economic conditions and invest according to their strategies.

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Team that worked on the article

Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.

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Dan Blystone began his trading career in 1998 as an arbitrage clerk on the floor of the Chicago Mercantile Exchange (CME). He later traded bond and Eurex futures at proprietary firms such as Altea Trading, gaining valuable experience in high-frequency trading and risk management.

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.

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