3 Surefire Vanguard ETFs to Buy and Hold in 2026

Core Insights - Exchange-traded funds (ETFs) are highlighted as effective tools for long-term wealth building, offering diversification, risk limitation, and potential passive income generation [1][2] Group 1: Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF (VOO) is a popular choice among investors, tracking the S&P 500 index which includes around 500 large and established U.S. companies [4] - Historical analysis indicates that the S&P 500 has never experienced negative total returns over any 20-year period, making it a reliable investment during market volatility [5] - Over the past decade, the Vanguard S&P 500 ETF has achieved total returns of 239%, meaning a $5,000 investment would have grown to nearly $17,000 [8] Group 2: Vanguard Total Stock Market ETF - The Vanguard Total Stock Market ETF (VTI) offers broader diversification by encompassing 3,531 stocks from various market capitalizations and industries [9] - While it has slightly underperformed the S&P 500 ETF in the last decade, its exposure to small-cap and mid-cap stocks provides potential for growth [12][13] - The overall market has a strong track record of recovering from downturns, which applies to this ETF as well [10] Group 3: Vanguard High Dividend Yield ETF - The Vanguard High Dividend Yield ETF (VYM) focuses on dividend-paying stocks, containing 566 companies with high dividend yields, and pays quarterly dividends [15] - Reinvesting dividends can create a compounding effect, potentially leading to significant passive income over time [16] - Although it has underperformed compared to the S&P 500 and Total Stock Market ETFs, its high dividend yield offers a cushion during market downturns [18]