© Courtesy of The Vanguard Group
There are many different exchange-traded fund (ETF) providers in the industry, but Vanguard stands out as one of the best. Its plethora of offerings, low cost, and interface make it a top choice for investors. It has a strong history of providing funds that manage to outperform the broader market. There’s plenty to like about Vanguard ETFs, and if you’re looking to add them to your portfolio, consider the Vanguard Growth ETF (NYSEARCA:VUG) and Vanguard Dividend Appreciation ETF (NYSE:VIG). Here’s why I think they’d make a great investment before 2026.
Vanguard Growth ETF
The Vanguard Growth ETF is a reliable ETF that has outperformed the market. It tracks the performance of the CRSP U.S. Large Cap Growth Index and is a passively managed fund with an expense ratio of 0.04%. Tech companies have become a reliable investment in the market due to their return potential, and about 63% of VUG’s portfolio lies in the tech sector.
While it isn’t a pure-play tech ETF, it invests in growth-focused stocks, and most of these are tech companies. The ETF allocates 63.3% to the technology sector, followed by 17.80% to the consumer discretionary sector. It weighs stocks based on the market cap, and large-cap companies account for more of the fund than small-cap companies. Its top 10 holdings include global giants such as Nvidia, Apple, Microsoft, Amazon, Tesla, and Google. The fund has a yield of 0.38% and has seen steady upside since May 2025.
If you believe in the future of the technology sector and are a fan of the mega-cap tech companies, VUG is a smart way to gain exposure to the sector. One reason to own the ETF is the history of outperforming the market. The fund has generated a cumulative return of 127.84% in 3 years and 132.72% in 5 years. It has gained 16.34% in 2025 and is exchanging hands for $476.
The Vanguard ETF will grow your money with little effort. Since growth stocks have outperformed value stocks in the past five years, VUG could be an ideal pick for 2026. By focusing on sectors like tech and consumer discretionary, VUG could outperform the broader market in the coming years.
Vanguard Dividend Appreciation ETF
The Vanguard Dividend Appreciation ETF tracks the performance of the S&P U.S. Dividend Growers Index and holds 338 stocks. The fund invests in large-cap stocks with a record of increasing dividends for 10 years. VIG is the right option for growth-oriented investors because dividend growth matters in the long term.
The companies in this index rarely have high yields, but they are producing earnings at a significant rate, ensuring steady returns for investors who hold the stock for the long term. The fund excludes the highest-yielding 25% of the list and includes the remaining stocks using a market cap weighting; hence, the largest companies have the highest impact on performance. VIG can help navigate market uncertainty due to the massive portfolio diversification and steady income potential.
Similar to VUG, this is a tech-focused fund and allocates 28.50% to the sector. This is followed by 21.60% in the financial sector and 15.50% in healthcare. Its top 10 stocks include dividend stalwarts such as Eli Lilly, Walmart, Johnson & Johnson, and Exxon Mobil. The fund has a yield of 1.59% and an expense ratio of 0.05%. While it has a lower yield, it tends to deliver a higher passive income over time.
VIG has a cumulative 3-year return of 54.60% and a 5-year return of 89.46%. It has gained 10.34% year to date and is exchanging hands for $215. VIG gives an opportunity to invest in solid blue chip stocks without taking high risk. The fund has remained a solid performer and could be a great investment for 2026.