Investors: These 3 Marvelous Vanguard ETFs May Be the Smartest Buys Right Now

Source Motley_fool

Key Points

  • One focuses on energy stocks, which are likely to profit from high demand.

  • One is focused on high-growth stocks with a strong track record.

  • One owns international dividend payers and could be a defensive choice.

  • 10 stocks we like better than Vanguard World Fund - Vanguard Energy ETF ›

If you're looking for promising investments for your long-term stock portfolio, consider opting for some exchange-traded funds (ETFs). They're funds that trade like stocks, and they can make your investing life simpler. It's also good to favor low-cost ones, and for low fund costs, it's hard to beat Vanguard.

Here, then, are three Vanguard ETFs that are poised to perform well over the coming years.

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1. Vanguard Energy Index Fund ETF

The Vanguard Energy Index Fund ETF (NYSEMKT: VDE) is promising in large part because energy-hungry data centers are proliferating, with Goldman Sachs recently projecting that US data center energy demand will double by next year.

The ETF has a low expense ratio (annual fee) of 0.09%, meaning you'll pay just $9 for every $10,000 invested in the fund. Here's how it has performed lately:

Period

Average Annual Gain

Past 3 years

16.27%

Past 5 years

19.81%

Past 10 years

8.99%

Past 15 years

5.82%

Source: Morningstar.com as of June 9, 2026.

You can see that it's been performing more impressively in recent years. Here's what you'll find under its hood: about 106 stocks, with top holdings recently including ExxonMobil, Chevron, and ConocoPhillips. Many energy companies are solid dividend payers, and these three recently sported dividend yields of 2.8%, 3.8%, and 2.9%, respectively. The ETF's overall dividend yield was recently 2.5%.

2. Vanguard Russell 1000 Growth Index Fund ETF

Like the ETF above, the Vanguard Russell 1000 Growth Index Fund ETF (NASDAQ: VONG) is also an index fund, in this case tracking the Russell 1000 Growth index that's focused on "US large cap stocks with relatively higher price-to-book ratios, higher 2-year I/B/E/S forecast growth and higher historical 5-year sales growth."

Its expense ratio is just 0.06%, and its dividend yield is just 0.42% -- which isn't surprising, as growth stocks will often funnel excess cash into furthering their growth rather than paying a dividend. The fund's portfolio recently featured 387 stocks, with top holdings Nvidia, Apple, and Microsoft. Here's how the fund has performed lately:

Period

Average Annual Gain

Past 3 years

23.44%

Past 5 years

14.39%

Past 10 years

18%

Past 15 years

16.40%

Source: Morningstar.com as of June 9, 2026.

Those are some heady returns, so permit me to offer some caveats: First, the fund's top 10 holdings recently accounted for a whopping 61% of its value. So it's quite concentrated. That's fine when the market is booming, as it has for many years now. But when the market pulls back, know that many growth stocks will likely fall harder than average. If you invest in this fund, you should be planning to hang on for a long time.

3. Vanguard International Dividend Appreciation Index Fund ETF

If you're worried about geopolitical instability around the world and high inflation in the U.S. and the possibility of a recession, you might want to focus on dividend-paying stocks, as they tend to be more established companies with relatively dependable income. And you might want to add some companies to your mix that are not based in the U.S. Consider the Vanguard International Dividend Appreciation Index Fund ETF (NASDAQ: VIGI).

It's the internationally focused version of the renowned Vanguard Dividend Appreciation Index Fund ETF (NYSEMKT: VIG), and it sports a higher dividend yield, too, of 2.1% vs. 1.5%. Both ETFs focus on dividend payers that have been increasing their payouts. Here's how it has performed lately:

Period

Average Annual Gain

Past 3 years

9.77%

Past 5 years

4.33%

Past 10 years

7.76%

Past 15 years

N/A

Source: Morningstar.com as of June 9, 2026.

Its portfolio of about 344 stocks is less concentrated than the fund above, with its top 10 holdings making up only 34% of the overall fund value. Those top holdings recently included Royal Bank of Canada, Nestle SA, and Novartis, with dividend yields of 2.6%, 4.1%, and 3.2%, respectively.

Each or all of these ETFs stand a good chance of serving your portfolio well, whether via the potential of outsized growth or asset-preserving income. Take a closer look at any that interest you.

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Selena Maranjian has positions in Apple, Microsoft, Novartis, and Nvidia. The Motley Fool has positions in and recommends Apple, Chevron, Goldman Sachs Group, Microsoft, Nvidia, and Vanguard Dividend Appreciation ETF. The Motley Fool recommends ConocoPhillips and Nestlé. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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