The Market Is Up 10% in 2026 — Are These ETFs Still Worth Buying Now?
Key Points
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The Vanguard S&P 500 ETF is a great core ETF to own.
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The Invesco QQQ Trust and Vanguard Growth Index are two top-tier growth stock ETFs.
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The Schwab U.S. Dividend Equity ETF is a quality value stock ETF that is outperforming this year.
The stock market is off to a solid start in 2026, with the S&P 500 index up roughly 8% at recent levels as we approach the halfway mark for the year. That follows a strong gain of nearly 18% last year and more than 25% in both 2023 and 2024.
Given the market’s strong run over the past several years, investors may be wondering if it’s still worth investing in some top exchange-traded funds (ETFs). The answer is yes, although I always recommend using a dollar-cost-averaging strategy of consistently investing in ETFs each month over a very long period of time. This helps smooth out your cost basis and is a tried-and-true method to build wealth over time.
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One thing investors also need to realize is that bull markets can last a pretty long time. While the average length of a bull market is around 2.7 years, many recent ones have lasted much longer. The longest bull market lasted from 1987 to 2000 and produced a 582% gain, while the second-longest ran from 2009 to 2020 and generated a 400% return.
The bull markets of the last 40 years have largely been driven by technological innovation and productivity gains. This can be seen in the 1987 to 2000 bull market led by personal computing and later the internet, and then again in 2009 with the advent of software-as-a-service (SaaS). Today, it is artificial intelligence (AI) stocks leading the way.
Let’s look at four ETFs to buy today.
The Vanguard S&P 500 ETF
The S&P 500 is the most widely tracked barometer of the U.S. stock market, and the Vanguard S&P 500 ETF (NYSEMKT: VOO) is a great low-cost way to invest in the index, with an expense ratio of just 0.03%. The ETF gives investors an instant portfolio with 500 of the largest U.S. stocks and a strong track record of performance. Over the past decade, the ETF has produced an average annual return of 15.4%, including dividends.
The Invesco QQQ Trust
Actively managed funds have struggled over the years to beat the S&P 500, but one index ETF that has done so consistently is the Invesco QQQ Trust (NASDAQ: QQQ), which tracks the Nasdaq-100 index. Much of the market’s gains over the past 15 to 20 years have been driven by growth and technology stocks, and the Nasdaq-100 is chock-full of them. The fund has produced total yearly returns of 21.8% on an annualized basis over the past decade, and investors will get a heavy dose of top AI stocks with an investment in the ETF.
The Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) essentially tracks the growth side of the S&P 500 and, as such, has a portfolio loaded with top tech stocks, which make up nearly 70% of its holdings. With growth nicely outperforming value over the past decade plus, it has been a stellar performer. The ETF’s total return over the last 10 years is 413%, yielding a 17.8% annualized gain.
Artist rendering of ETFs trading.
Image source: Getty Images.
The Schwab U.S. Dividend Equity ETF
Value stocks have been largely out of favor for the last decade, so it’s not surprising that the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) doesn’t have the same returns as the growth stocks on this list. However, the ETF, which tracks the Dow Jones U.S. Dividend 100 index, has been a solid performer, with a 12.5% average annual return (including dividend reinvestment), outpacing the value ETF category.
The fund has had a very strong start to 2026, up 16.3% at recent prices. It also has a solid 3.3% yield, as the index it tracks requires stocks with strong balance sheets and cash flow that can sustain dividend increases.
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Geoffrey Seiler has positions in Invesco QQQ Trust and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
