3 Simple ETFs Worth Buying and Holding for Decades

Investors looking at today's market might take the easy route and focus solely on tech-sector stocks, especially those related to artificial intelligence (AI). After all, these stocks have spent the last several years outperforming the market by a wide margin. But if you really want something that's durable, consistent, and long-lasting in your portfolio, dividend-focused exchange-traded funds (ETFs) are the place to look.

Dividend ETFs won't be as exciting as tech stocks. But most of these funds invest in companies that generate consistent profit growth, strong cash flows, and a history of rewarding shareholders with growing dividends. Plus, they tend to hold up better during declining or volatile markets.

In 2026, several dividend ETFs are outperforming the S&P 500 (SNPINDEX: ^GSPC) amid rising concerns about inflation, geopolitical risk, and government deficits. That's why now is an especially good time to consider adding these to your portfolio.

Here are three that stand out as potential leaders in the future.

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1. Vanguard Dividend Appreciation ETF

The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is built on a very simple strategy: own U.S. large-cap stocks that have raised their dividends for at least 10 consecutive years. It's a very straightforward methodology, but one that's delivered impressive results over the years.

The fund has returned more than 13% annually over the past decade, a period when the market was almost exclusively focused on the tech trade. Its 1.4% yield isn't terribly attractive compared to other dividend ETFs, but that's because it actively avoids potential yield traps. Its 0.04% expense ratio makes it one of the cheapest funds to own.

Part of the reason the fund has done so well is that its market-cap-weighted process pushes names like Apple and Microsoft into the fund's top five holdings. Overall, the Vanguard Dividend Appreciation ETF offers one of the more balanced combinations of growth and income.

2. iShares Core Dividend Growth ETF

The iShares Core Dividend Growth ETF (NYSEMKT: DGRO) builds on VIG's focus on long-term dividend growers and adds quality screens to ensure that those dividend payments are sustainable over time.

The fund has a track record similar to that of the Vanguard Dividend Appreciation ETF, having returned about 13.6% annually over the past decade. Its 2% dividend yield makes it a better option for income seekers, especially when investing more heavily in sectors such as financials and healthcare. By maintaining a more defensive, value-oriented portfolio, the iShares Core Dividend Growth ETF offers a nice contrast to a core Vanguard S&P 500 ETF (NYSEMKT: VOO) position in your portfolio.

3. Schwab U.S. Dividend Equity ETF

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) appears on many favorite dividend ETF lists and for good reason. It perhaps does the best job of incorporating dividend growth, high yield, and balance sheet quality into its stock selection process.

If higher income is your goal, this is the best of these three funds to consider. Its 3.2% yield is roughly triple that of the S&P 500. And it's built on one of the highest-quality portfolios you'll find because companies need to meet clear criteria, including cash flow-to-debt, return on equity (ROE), dividend yield, and dividend growth rate. The Schwab U.S. Dividend Equity ETF has also generated a 13% average annual return over the past 10 years, and its 30% year-to-date return makes it one of the best performers in this category.

Why all three of these dividend ETFs can be held forever

The biggest advantage of these dividend ETFs is that they're built on balance sheet strength and durability.

The AI trade is working right now, but economic cycles rise and fall. Instead, these ETFs hold companies built to withstand a range of economic environments. Historical returns show they can still capture upside in good markets. But the downside protection and volatility mitigation during declining markets is just as beneficial.

David Dierking has positions in Apple, Schwab U.S. Dividend Equity ETF, and Vanguard Dividend Appreciation ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Vanguard Dividend Appreciation ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.