1 Vanguard ETF I'm Buying in 2026 and Holding Forever
Key Points
U.S. stocks continue to rise in 2026, but the composition of the rally is looking much different.
Small caps are outperforming, cyclicals are beating the S&P 500, and tech has begun lagging the index.
That makes the Vanguard Total Stock Market ETF (VTI) a great choice to shift your U.S. stock allocation a bit.
- 10 stocks we like better than Vanguard Total Stock Market ETF ›
We've already seen a much different market in 2026 than the one we experienced from 2023 to 2025. No longer is tech dominating the discussion. Cyclicals are broadly outperforming the S&P 500, small caps have gotten off to a roaring start, and precious metals continue last year's rally.
Given the concentration issue alone, I think investors should consider adjusting any large-cap or tech-heavy allocations. Market breadth has improved considerably and investors may want to focus on diversification this year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
That doesn't have to mean major allocation changes though. One ETF which provides that shift is the Vanguard Total Stock Market ETF (NYSEMKT: VTI). As the name suggests, it goes far beyond the S&P 500 and invests in the entire investable U.S. equity market, all 3,500+ stocks. Because it's market-cap-weighted, you still get the large-cap overweight, but the overall portfolio ends up including about a 22% allocation to mid- and small-caps. That's enough of a tilt to enhance diversification benefits and help capture any rotation into smaller companies.
And it's because of that diversified approach to the U.S. equity market that the fund becomes an ideal candidate to buy and hold forever. The 35% allocation to the "Magnificent Seven" stocks in the S&P 500 is looking a bit more dangerous at the moment as momentum cools and economic concerns rise. The Vanguard Total Stock Market ETF still maintains that U.S. large-cap bias, but reduces concentration risk a bit and adds the potential of long-unloved small caps to the mix.
Not only does that make it an ETF I'll continue adding in 2026, but it's one I'll keep holding on to indefinitely.
Should you buy stock in Vanguard Total Stock Market ETF right now?
Before you buy stock in Vanguard Total Stock Market ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Total Stock Market ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $450,525!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,107!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 24, 2026.
David Dierking has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.
Recommended Articles
