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When it comes to investing, there’s no right time and no right age to get started. Whether you’d put money in a few stocks a decade ago or are looking to start investing today, you’re at the right place. Investing isn’t a marathon; it is a sprint, and you should never underestimate the power of compounding. If you’re starting over in 2026 and looking to build a portfolio that survives the market ups and downs, consider investing in exchange-traded funds over individual stocks.
They carry low risk, offer diversification, and have become a popular investment choice. ETFs ruled 2025, and they could continue dominating the market this year. If you’re ready to start your investment journey in 2026, consider Vanguard S&P 500 ETF (NYSEMKT: VOO), Vanguard Dividend Appreciation ETF (NYSEARCA: VIG), and Invesco NASDAQ 100 ETF (NASDAQ:QQQM).
Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF is one of the best Vanguard funds to add to your portfolio. It tracks the S&P 500 and invests in some of the top U.S. companies. It holds about 500 stocks and has an expense ratio of 0.03%. VOO is a tech-heavy fund, which is why it has rallied in the past three years. It has the highest allocation to the technology sector at 34%, followed by financials at 13% and communication services at 11%.
The ETF has the highest allocation in Nvidia and Apple Inc., forming 14% of the portfolio. The other stocks in the top 10 holdings include Alphabet, Broadcom, Microsoft, Amazon, Meta Platforms, Tesla, and Berkshire Hathaway. It pays quarterly dividends and has a yield of 1.10%. VOO set an all-time inflow record by drawing in $143 billion in 2025.
VOO has generated a cumulative 3-year return of 85.94% and a 5-year return of 95.80%. While the ETF is not solely about technology and AI, it has rallied due to the tech upside. However, it offers exposure to several other industries as well. This ETF has consistently beaten the S&P 500 and could continue doing so. It has generated a compound annual return of 17% since inception in 2010.
The ETF rebalances each quarter to ensure that only the finest companies are a part of it. VOO has gained 19.5% in a year and is exchanging hands for $638.31. Investors looking for steady upside should park their money in the fund.
Vanguard Dividend Appreciation Index Fund ETF
Another excellent fund by Vanguard, the Vanguard Dividend Appreciation Index Fund ETF offers steady income for investors. It is a passively managed fund that tracks the S&P U.S. Dividend Growers Index. VIG has a yield of 1.58% and an expense ratio of 0.05%. The dividend-focused fund offers more protection in market downturns. It has $120.4 billion in assets under management.
VIG holds over 300 stocks and has the highest weightage to the technology sector at 27.80%, followed by financials at 21.40% and healthcare at 16.70%. The fund has gained 16% in the past year and is trading for $224.76.
Vanguard Dividend Appreciation Fund offers low-cost dividend growth and has the highest allocation in well-known dividend stocks such as Exxon Mobil, Johnson & Johnson, Walmart, Visa, Eli Lilly, and JP Morgan. Its top 3 holdings are tech giants Broadcom, Microsoft, and Apple. It has grown its payouts by 9% annually in the last five years.
The ETF has generated a cumulative 3-year return of 52.93% and a 5-year return of 70.57%. VIG is about 20 years old and has an impressive track record. Its broad approach and diversification offer stability and steady income.
One reason to pick VIG over other tech ETFs is the portfolio diversification. While it is heavily invested in the tech sector, it offers stability and diversification by investing across other sectors. Hence, even if the tech sector is down, you’ve nothing to worry about.
Invesco Nasdaq 100 ETF
The Invesco Nasdaq 100 ETF tracks the Nasdaq 100 and invests in 100 of the largest domestic and international nonfinancial companies on the index. It gives access to large- and mega-cap companies and offers exposure to a wide range of industries. The fund has an expense ratio of 0.15% and a yield of 0.50%. While the ETF is similar to Invesco QQQ Trust (NASDAQ:QQQ), it has a lower expense ratio and is cheaper.
QQQM invests heavily in the tech sector with an allocation of 63%. It offers diversification by investing in other sectors such as consumer discretionary (17.91%) and healthcare (5.43%). The fund’s top 10 holdings are giant tech companies such as Nvidia, Microsoft, Apple, Amazon, Tesla, Meta Platforms, and Alphabet.
The fund has generated a 3-year return of 33.01% and a 5-year return of 15.14%. QQQM is a smart choice for investors who want exposure to the big industry players. It also offers a great opportunity to tap into the AI boom without investing in individual stocks.
If you’re a newbie investor or are starting over, this fund can be an ideal choice. The current economic scenario is in favor of tech stocks, and it could give a boost to QQQM. The fund has gained 23.5% in a year and is exchanging hands for $258. It has the potential to grow your investment in a short period of time.