Best ETFs for 2026
VTI — Vanguard Total Market
Own all 4,000+ US companies for 0.03%/year
VTI provides the broadest US diversification at the lowest cost. Over any 20-year period it has beaten most actively managed funds after fees.
✅ Pros
- Broadest US diversification
- 0.03% — nearly free
- Beats most managed funds long-term
- Available everywhere
- No minimum with fractional shares
❌ Cons
- No international exposure
- Must pair with bond ETF for full diversification
VOO — Vanguard S&P 500
Warren Buffett's recommended fund for most people
VOO tracks 500 largest US companies, representing 80% of US market cap. The world's most studied investment benchmark.
✅ Pros
- 0.03% expense ratio
- Enormous liquidity
- Buffett endorsement
- S&P 500 is the gold standard
❌ Cons
- No small-cap exposure
- 30% concentrated in top 10 tech stocks
SCHD — Schwab Dividend Equity
3.5% yield + 11%/yr dividend growth
SCHD selects 100 high-quality dividend growers with a quality screen. Better for income-focused portfolios approaching retirement.
✅ Pros
- High yield + strong growth
- Lower volatility than pure growth ETFs
- Quality screen reduces risk
- Great for income portfolios
❌ Cons
- Underperforms growth ETFs in bull markets
- 100 holdings — less diversified than VTI
The 3-Fund Portfolio
VTI (60%) + VXUS (30%) + BND (10%). Total US + international + bonds. Set once, rebalance annually. This strategy used by target-date funds — at a fraction of their cost.
| ETF | Ticker | Expense Ratio | Best For |
|---|---|---|---|
| Vanguard Total Market | VTI | 0.03% | Best single US holding |
| Vanguard S&P 500 | VOO | 0.03% | S&P 500 benchmark |
| Schwab Dividend | SCHD | 0.06% | Income + quality |
| Vanguard International | VXUS | 0.07% | Global diversification |
| Vanguard Total Bond | BND | 0.03% | Stability ballast |
Model your ETF growth
$400/month at 10% avg return = $830,000 in 30 years. See your number.