Jan 18, 2026 3 min read 0 views

Vanguard ETFs Offer Diverse Investment Options for 2026

Vanguard ETFs provide low-cost investment opportunities with various funds for income, growth, and diversification, including 11 highlighted options with performance data.

Vanguard ETFs Offer Diverse Investment Options for 2026

Vanguard, a respected investment company founded by John Bogle, is known for its low fees, with many ETFs charging just a few dollars annually per $10,000 invested. The company offers funds that can serve investors seeking income, growth, or other objectives.

Investing in exchange-traded funds (ETFs) is a practical approach, as they provide exposure to a range of stocks or other assets through a single investment, often with lower expense ratios than mutual funds. ETFs trade like stocks on the market, simplifying the investment process. Searching among Vanguard ETFs is advisable due to the company's reputation for low costs.

Eleven Vanguard ETFs are worth closer examination, suitable for investors with amounts ranging from $100 to $100,000. A table illustrates potential growth, showing that $6,000 invested annually at an 8% return could grow to $35,192 in 5 years and $1,554,339 in 40 years, while $12,000 annually could reach $70,399 in 5 years and $3,108,678 in 40 years, based on calculations via Investor.gov.

Performance data as of January 12, 2026, from Morningstar.com includes the Vanguard S&P 500 ETF (VOO) with a 1.13% dividend yield and 14.55% 5-year average annual return, the Vanguard Total Stock Market ETF (VTI) at 1.12% and 13.12%, the Vanguard Total World Stock ETF (VT) at 1.83% and 11.10%, the Vanguard Total Bond Market ETF (BND) at 3.86% and (0.17%), the Vanguard Dividend Appreciation ETF (VIG) at 1.62% and 11.69%, the Vanguard High Dividend Yield Index Fund ETF (VYM) at 2.44% and 12.48%, the Vanguard International High Dividend Yield Index Fund ETF (VYMI) at 3.69% and 12.49%, the Vanguard Real Estate ETF (VNQ) at 3.92% and 5.59%, the Vanguard Value ETF (VTV) at 2.05% and 12.56%, the Vanguard S&P 500 Growth Index Fund ETF (VOOG) at 0.49% and 15.33%, and the Vanguard Information Technology ETF (VGT) at 0.40% and 17.49%.

The Vanguard S&P 500 ETF is a classic index fund with an ultra-low expense ratio of 0.03%, providing exposure to 500 large U.S. companies. The Vanguard Total Stock Market ETF covers nearly the entire U.S. stock market, while the Vanguard Total World Stock ETF offers global exposure with a higher dividend yield. The Vanguard Total Bond Market ETF aids portfolio diversification, particularly for those nearing retirement, by including bonds that provide income.

Dividend-focused options include the Vanguard Dividend Appreciation ETF, which targets stocks with growing dividends, and the Vanguard High Dividend Yield Index Fund ETF, offering strong dividend income from over 500 holdings. The Vanguard International High Dividend Yield Index Fund ETF extends this focus internationally with higher yields. The Vanguard Real Estate ETF invests in real estate investment trusts (REITs) for realty exposure.

For market conditions, the Vanguard Value ETF favors value stocks for safety during downturns, while the Vanguard S&P 500 Growth Index Fund ETF targets growth stocks, though they may decline more in pullbacks. The Vanguard Information Technology ETF has shown impressive growth performance. Investors can consider spreading investments across multiple ETFs for their long-term portfolios.

Before purchasing the Vanguard S&P 500 ETF, note that The Motley Fool Stock Advisor team identified 10 stocks they consider better buys, with examples like Netflix and Nvidia yielding high returns from past recommendations. Stock Advisor's total average return is 958%, outperforming the S&P 500's 196%.

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