Last updated: July 2026
Disclaimer: This article is for informational and educational purposes only. It does not constitute financial, investment, or tax advice. We are not licensed financial advisors, and nothing on this page should be interpreted as a recommendation to buy or sell any security. ETFs involve risk, including the possible loss of principal. Always do your own research and consult a licensed financial advisor before making investment decisions.
If you’ve ever typed “best ETFs to buy now” into Google, you already know the problem: there are thousands of exchange-traded funds on the market, and most “best of” lists either recycle the same three tickers or bury you in jargon.
This guide takes a different approach. We compare seven of the most widely held, most liquid ETFs across the categories that actually matter to most investors — core U.S. index funds, growth, dividends, international diversification, bonds, and Bitcoin exposure — using the same criteria for each one: expense ratio, assets under management (AUM), what the fund actually holds, and who it tends to suit best.
This is not a “buy these and get rich” list. It’s a side-by-side reference so you can figure out which fund category fits your own goals, timeline, and risk tolerance.
How We Evaluate ETFs
Every fund below was reviewed using data pulled directly from the issuer’s official fund page (Vanguard, iShares/BlackRock, Invesco, Schwab). For each ETF we looked at:
- Expense ratio — the annual fee you pay to hold the fund, expressed as a percentage of your investment
- Assets under management (AUM) — a rough proxy for liquidity and investor trust
- What it tracks — the index or asset the fund is designed to follow
- Dividend yield, where relevant
- Historical performance context — not as a promise of future returns, but to illustrate how the fund has behaved through different markets
We did not accept payment from any fund issuer to be included in this list. Some of the brokers linked below may pay us a referral commission if you open an account through our link, at no extra cost to you — see our full disclosure at the bottom of this page.
Quick Comparison Table
| ETF | Category | Expense Ratio | AUM (approx.) | Best For |
|---|---|---|---|---|
| VOO | S&P 500 index | 0.03% | ~$600B+ | Core, low-cost U.S. exposure |
| VTI | Total U.S. market | 0.03% | ~$460B | Broadest possible U.S. exposure |
| QQQ | Nasdaq-100 / growth | 0.20% | ~$310B | Tech and growth tilt |
| SCHD | U.S. dividend equity | 0.06% | ~$95B | Dividend income + quality screen |
| VXUS | International stocks | 0.05% | ~$150B+ | Diversifying outside the U.S. |
| BND | U.S. bond market | 0.03% | Multi-billion, one of the largest bond ETFs | Stability, income, lower volatility |
| IBIT | Spot Bitcoin | 0.25% | ~$58B | High-risk, high-volatility crypto exposure |
Figures are approximate and change regularly. Always confirm current expense ratios and fund size on the issuer’s official page before investing.
1. Vanguard S&P 500 ETF (VOO) — Best Core U.S. Index Fund
Expense ratio: 0.03% · Tracks: S&P 500 Index · Issuer: Vanguard
VOO is one of the two or three largest ETFs in the world, and for a simple reason: it gives you ownership of roughly 500 of the largest publicly traded U.S. companies — from Apple and Microsoft to smaller S&P 500 constituents — in a single trade, for an annual cost of about $3 per $10,000 invested.
VOO doesn’t try to beat the market. It is the market, or at least the large-cap slice of it. That’s the entire appeal: no stock-picking, minimal fees, and a track record that’s hard for most actively managed funds to beat over long periods.
Worth knowing: VOO is heavily weighted toward its largest holdings, which in recent years have skewed toward a handful of mega-cap technology companies. That means its performance can be more concentrated in a few names than the “500 companies” framing suggests.
Who it tends to suit: Investors who want one simple, low-cost fund as the core of a long-term portfolio, without needing to actively manage individual stock picks.
2. Vanguard Total Stock Market ETF (VTI) — Best for Total U.S. Exposure
Expense ratio: 0.03% · Tracks: CRSP US Total Market Index · Issuer: Vanguard
VTI is VOO’s broader sibling. Instead of roughly 500 large companies, it holds several thousand U.S. stocks — large, mid, and small-cap — in a single fund. The overlap with VOO is substantial, since large-cap companies still dominate the fund’s weighting, but VTI adds exposure to smaller companies that VOO doesn’t include at all.
Worth knowing: Historically, VOO and VTI have moved almost in lockstep, since large-caps drive most of the total market’s returns. The practical difference between the two is smaller than the marketing around them suggests — this is exactly the kind of comparison we break down in detail in our [VOO vs VTI article].
Who it tends to suit: Investors who want the broadest possible slice of the U.S. stock market in one fund, including smaller companies.
3. Invesco QQQ Trust (QQQ) — Best for Growth and Tech Exposure
Expense ratio: 0.20% · Tracks: Nasdaq-100 Index · Issuer: Invesco
QQQ tracks the 100 largest non-financial companies listed on the Nasdaq, which in practice means a fund heavily concentrated in technology, communication services, and consumer discretionary names. It has historically delivered strong returns during bull markets driven by tech and growth stocks, along with sharper drawdowns when that trade reverses.
Worth knowing: QQQ’s 0.20% expense ratio is meaningfully higher than a plain index fund like VOO or VTI. Invesco also offers QQQM, a nearly identical fund with a lower 0.15% fee, aimed at buy-and-hold investors rather than active traders who value QQQ’s higher trading volume.
Who it tends to suit: Investors comfortable with higher volatility in exchange for concentrated exposure to growth-oriented, technology-heavy companies.
4. Schwab U.S. Dividend Equity ETF (SCHD) — Best for Dividend Income
Expense ratio: 0.06% · Tracks: Dow Jones U.S. Dividend 100 Index · Dividend yield: approximately 3%–4% (varies) · Issuer: Schwab
SCHD screens for U.S. companies with at least 10 consecutive years of dividend payments, then ranks the survivors by financial quality metrics like cash-flow-to-debt and return on equity. The result is a portfolio of roughly 100 established, profitable companies rather than simply the highest-yielding stocks on the market.
Worth knowing: SCHD’s quality screen means it tends to underweight or exclude high-yield sectors like REITs and utilities that carry more financial risk. That’s generally viewed as a feature, not a bug, but it also means the fund’s yield is more moderate than some pure high-yield alternatives — a trade-off we explore further in our [SCHD vs VYM comparison].
Who it tends to suit: Investors prioritizing a combination of dividend income and dividend growth over the highest possible current yield.
5. Vanguard Total International Stock ETF (VXUS) — Best for International Diversification
Expense ratio: 0.05% · Tracks: FTSE Global All Cap ex-US Index · Issuer: Vanguard
VXUS holds thousands of stocks across developed and emerging markets outside the United States — from Japan and the UK to smaller emerging economies. For investors whose portfolios are otherwise 100% U.S.-focused, it’s one of the simplest ways to add geographic diversification in a single ticker.
Worth knowing: U.S. markets have significantly outperformed international markets over the past decade, which has made some investors question the value of international allocation. Whether that trend continues is impossible to predict — which is a large part of the argument for diversification in the first place.
Who it tends to suit: Investors who want exposure outside the U.S. market without picking individual countries or regions.
6. Vanguard Total Bond Market ETF (BND) — Best for Stability and Income
Expense ratio: 0.03% · Tracks: Bloomberg U.S. Aggregate Float Adjusted Index · Issuer: Vanguard
BND holds a broad mix of U.S. investment-grade bonds — Treasuries, corporate bonds, and mortgage-backed securities. Bonds generally behave differently than stocks, which is why many investors use a fund like BND to reduce overall portfolio volatility rather than to maximize growth.
Worth knowing: Bond ETFs are sensitive to interest rate movements: when rates rise, existing bond prices tend to fall, and vice versa. BND is not a substitute for a savings account or an emergency fund — its price does fluctuate.
Who it tends to suit: Investors looking to dial down portfolio risk, generate income, or balance a stock-heavy portfolio, particularly as they approach a shorter investment timeline.
7. iShares Bitcoin Trust (IBIT) — Highest-Risk Pick, Bitcoin Exposure
Expense ratio: 0.25% · Tracks: Spot price of Bitcoin · Issuer: BlackRock
IBIT gives investors exposure to Bitcoin’s price through a regulated ETF wrapper, without needing to set up a crypto wallet or exchange account directly. It’s currently the largest spot Bitcoin ETF by assets and trading volume.
Worth knowing: This is the highest-risk fund on this list by a wide margin. Bitcoin has a history of extreme price swings in both directions, and unlike the other funds here, IBIT pays no dividend and its long-term price behavior has a much shorter track record than a fund like VOO or BND.
Who it tends to suit: Investors who already understand and accept Bitcoin’s volatility and want a small, defined allocation to it inside a standard brokerage or retirement account — not as a core holding.
Frequently Asked Questions
What is the single best ETF to buy right now? There isn’t one universal answer — it depends on your goals, timeline, and risk tolerance. Investors looking for a simple, low-cost core holding often start with a broad index fund like VOO or VTI, while those wanting income lean toward dividend funds like SCHD. This article compares the trade-offs; it isn’t a personalized recommendation.
Is it better to buy one ETF or several? Both are common approaches. A “one-fund” portfolio using something like VTI is simple to manage. Combining a few funds — for example, a U.S. index fund, an international fund, and a bond fund — lets you control your own allocation between growth and stability, at the cost of a bit more complexity.
How much money do I need to start investing in ETFs? Most major brokers now offer commission-free ETF trading and fractional shares, meaning you can start with a small amount — sometimes as little as $1 — depending on the platform.
Are ETFs safer than individual stocks? ETFs spread your money across many companies at once, which reduces the impact of any single company underperforming. That diversification lowers one kind of risk, but ETFs still carry market risk — their value can go down as well as up.
Do ETF expense ratios really matter that much? Yes, over long periods. The difference between a 0.03% and a 0.75% expense ratio may look small year to year, but compounded over 20-30 years it can meaningfully affect your final balance, since fees are deducted from your returns every single year regardless of performance.
Affiliate disclosure: Some links on this page may be affiliate links. If you open an account through one of these links, we may earn a commission at no additional cost to you. This does not influence which funds we choose to cover or how we describe them. We are not compensated by fund issuers (Vanguard, BlackRock, Schwab, Invesco) to be included in this article.
Data sources: fund figures referenced in this article were sourced from the official issuer pages for each ETF (Vanguard, iShares/BlackRock, Invesco, Schwab) as of the “last updated” date above. Expense ratios, AUM, and yields change over time — always verify current figures directly with the fund issuer or your brokerage before investing.
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