History Says This Is How the Market Will Perform in 2026. Here Are the Best ETFs to Own Headed Into Next Year.
The Motley Fool·2025-12-19 18:25

Market Outlook - The current bull market has surpassed its third anniversary, indicating potential for continued growth into the next year [1] - Historical data suggests that every bull market lasting three years has continued for at least five years, with the shortest lasting five years and the longest over twelve years [2] Historical Performance - Since 1950, bull markets have averaged a duration of five and a half years, suggesting that the current market still has room to grow [3] - When the S&P 500 has rallied over 35% in a six-month period, the market has shown positive returns 12 months later, averaging a 13.4% increase during these periods [3] Investment Strategies - For ETF investors, dollar-cost averaging is recommended as a strategy to build long-term wealth, regardless of market conditions [5] - The Vanguard S&P 500 ETF is highlighted as a low-cost option with an expense ratio of 0.03%, outperforming 86% of actively managed funds over the past decade [5][7] - The Vanguard Growth ETF has produced a 17.2% annual return over the past decade and has more than doubled during the current bull market, with a 107.4% increase [8][9] - The Invesco QQQ Trust has consistently outperformed the S&P 500, with an average annual return of 19.4% over the past decade and 29.1% over the last three years [10][13]