The Vanguard S&P 500 ETF is a long-term winner, regardless of when you buy it.
The Vanguard Dividend Appreciation ETF focuses on an investment approach that highlights well-managed companies.
Vanguard Utilities ETF will benefit from a sea change in electricity demand that will last decades.
10 stocks we like better than Vanguard S&P 500 ETF ›
Wall Street is nervous right now because S&P 500 index (SNPINDEX: ^GSPC) is trading near all-time highs. Add to that economic concerns and current geopolitical uncertainty, and you’ll see why some investors are worried about the risk of a bear market in 2026. However, don’t let that stop you from investing, especially if you take a long-term perspective. Here are three Vanguard exchange-traded funds (ETFs) you may want to consider adding to your portfolio even if a market sell-off occurs in 2026.
Vanguard S&P 500 ETF(NYSEMKT:VOO) tracks the S&P 500 index, the most widely used indicator for tracking the broader market. It is made up of approximately 500 companies that are carefully selected by a committee because they are representative of the American economy. There are definitely better and worse times to invest in the market, but history is very clear about what happens to the S&P 500 index over the long term.
^SPX data from YCharts
As the chart above highlights, after every bear market, the S&P 500 index eventually reaches new highs. In other words, even if you bought at the market’s peak, the rise of the S&P 500 has proven to be an unstoppable force when it comes to building financial wealth. The key is to buy and hold for the long term.
So if you’re wondering whether you should start investing right now, you shouldn’t be afraid to take the plunge. And if you want to keep your life simple, Vanguard’s low-cost S&P 500 Index ETF (with an expense ratio of just 0.03%) remains a solid choice, even though the index it tracks is trading near all-time highs. In fact, a bear market would make it even more attractive. Meanwhile, if you buy before a big drop, simply dollar-cost average buying even more. History suggests that you will end up being a long-term winner with this ETF.
Image source: Getty Images.
He Vanguard Dividend Appreciation ETF(NYSEMKT: VIG) Tracks focuses on stocks that have increased their dividends annually for at least 10 consecutive years. From that group, eliminate the top 25% and buy the rest of the investment candidates. The expense ratio is a low 0.05%. There are two big takeaways from the approach this ETF takes.
First, the Vanguard Dividend Appreciation ETF uses dividend history to focus on well-managed companies. After all, periodically increasing a dividend for more than 10 years is something that only financially solid companies with good business models can achieve. Second, by eliminating higher-yielding stocks from consideration, the portfolio is tilted in favor of growth. This is not an ETF you buy for performance; It is one that is bought to grow and increase dividends.
This style of investing won’t go out of style just because of a bear market. And, with more than 330 stocks in the portfolio, Vanguard Dividend Appreciation ETF offers the risk mitigation benefits of diversification along with a track record of price appreciation and dividend growth.
Artificial intelligence, data centers and electric vehicles are expected to drive a 55% increase in demand for electricity between 2020 and 2040. This is a sea change for the utility sector, which saw demand grow by just 9% between 2000 and 2020. Meeting this demand will lead to decades of investment in the utility sector which, if history is any guide, should result in reliable growth for utilities no matter what. what happens with the market in general.
You could purchase individual utilities in an attempt to capitalize on this long-term opportunity. However, a much easier way to do this is by purchasing Vanguard Utilities ETF(NYSEMKT: VPU). The ratio below is specifically designed to ensure that the portfolio is diversified, the expense ratio is a reasonable 0.9% and approximately 90% of the portfolio is directly or indirectly exposed to the growing electricity demand expected over the coming decades.
You could try to time the market, but that’s a difficult approach to replicate consistently over time. You will be much better off buying and holding ETFs like Vanguard S&P 500 ETF, Vanguard Dividend Appreciation ETF, and Vanguard Utilities ETF. This trio offers investors three distinct investment approaches, each with long-term potential. One is likely to align well with your investment approach, even if a bear market is looming in 2026.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Vanguard Dividend Appreciation ETF and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Three Unstoppable Vanguard ETFs to Buy Even If There’s a Stock Market Selloff in 2026 originally posted by The Motley Fool
