2 Vanguard ETFs to Buy Before 2026

Quick Read

VTI provides exposure to thousands of U.S. stocks across all market caps with a very low expense ratio.
VYM focuses on companies with higher-than-average dividends to generate steady income.
Both ETFs offer low-cost diversification for your retirement portfolio.
If you’re focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactly what The Definitive Guide to Retirement Income was created to solve, and it’s free today. Read more here

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By Maurie Backman Published Dec 12, 2025 at 3:14 PM EST

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2 Vanguard ETFs to Buy Before 2026 — © Andrew Angelov / Shutterstock.com

The end of a calendar year is a good time to assess your investment strategy and make sure it’s working for you. And if you’re in the process of building wealth for retirement, there are two things you could probably use to supercharge your portfolio — growth and regular income.

Investing in ETFs, or exchange-traded funds, is a great way to build out a diversified portfolio while limiting the amount of work you have to do. And if your goal for 2026 is to grow your portfolio and set yourself up with ongoing income, then here are two ETFs you may want to put money into before 2025 wraps up.

1. The Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF (VTI) allows you to invest in the U.S. market on a whole. This means you’re getting a mix of large, established businesses, medium-sized businesses, and small-cap companies that may be more risky but offer a lot of potential upside.

All told, VTI wins from a diversification standpoint, since it encompasses several thousand stocks across a range of market sectors. Plus, one thing Vanguard is known for is its low-cost ETFs, and VTI is no exception. A super-low expense ratio means you won’t lose a ton of money to fees.

VTI lets your portfolio enjoy broad stock market gains without the need to choose companies individually. You may not see a ton of growth in 2026 alone, depending on how the market performs. But over time, you may find that VTI is able to generate strong gains for your portfolio. So the sooner you invest in it, the sooner it can start working for you.

2. The Vanguard High Dividend Yield ETF (VYM)

While VTI gives you broad exposure to the stock market, the Vanguard High Dividend Yield ETF (VYM) focuses on companies that pay higher-than-average dividends. VYM’s strategy is to generate steady income, so it invests in companies with strong dividends specifically.

Now you might think that makes VYM a riskier investment than VTI. But that’s not necessarily the case.

Companies that pay higher-than-average dividends tend to be established, stable businesses. So you could easily argue that VYM is a less risky investment. Plus, whenever you own an asset that pays dividends, those payments can serve as a hedge against stock market volatility.

Like VTI, VYM lets you invest at a very low cost. This ensures that your money is working for you, as opposed to paying costly fees.

Now you could opt to invest in either VTI or VYM in the new year. But combined, they could help you achieve a diversified portfolio that’s not only poised for growth, but steady income.

Of course, there are other ETFs that could achieve similar goals, so there’s nothing wrong with looking outside of Vanguard if you want to explore your options. But if you’re looking for a simple way to set your portfolio up for success in the new year, then it’s worth giving these two Vanguard funds a close look.