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.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Someone is studying scientific illustrations on a clear board.

Image source: Getty Images.

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.

Should you buy stock in Vanguard World Fund - Vanguard Energy ETF right now?

Before you buy stock in Vanguard World Fund - Vanguard Energy 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 World Fund - Vanguard Energy 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 $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*

Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% 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 June 12, 2026.

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.
placeholder
SpaceX prices IPO at $135 per share in preparation for record $75 billion offeringElon Musk’s SpaceX has officially set its initial public offering at a price of $135 per share on Thursday, setting projections of a $75 billion raise in the largest stock market debut in history and valuing Elon Musk’s rocket and satellite company at almost $1.77 trillion. The offering eclipses Saudi Aramco’s December 2019 IPO, which...
Author  Cryptopolitan
16 hours ago
Elon Musk’s SpaceX has officially set its initial public offering at a price of $135 per share on Thursday, setting projections of a $75 billion raise in the largest stock market debut in history and valuing Elon Musk’s rocket and satellite company at almost $1.77 trillion. The offering eclipses Saudi Aramco’s December 2019 IPO, which...
placeholder
ECB raises rates for first time since 2023 as Iran war drives inflation higherOn Thursday, the European Central Bank increased its deposit rate by 25 basis points to 2.25% in its first rate hike since September 2023. The escalation of the war in the Middle East sent inflation within the eurozone significantly above the bank’s target of 2%. The ECB has become the first major central bank to...
Author  Cryptopolitan
16 hours ago
On Thursday, the European Central Bank increased its deposit rate by 25 basis points to 2.25% in its first rate hike since September 2023. The escalation of the war in the Middle East sent inflation within the eurozone significantly above the bank’s target of 2%. The ECB has become the first major central bank to...
placeholder
Oil Falls As Trump Cancels Iran Strikes, But Can Bitcoin Reach $64,000?President Donald Trump said he canceled the strikes planned against Iran on Thursday evening, announcing a deal approved at the highest level of Iranian leadership and backed by 11 regional and allied
Author  Beincrypto
16 hours ago
President Donald Trump said he canceled the strikes planned against Iran on Thursday evening, announcing a deal approved at the highest level of Iranian leadership and backed by 11 regional and allied
placeholder
Silver Price is Down Nearly 50% from Record High, and This Trendline is the Last DefenseSilver (XAG) closed below its 200-day moving average on June 9 for the first time since April 2025. Silver price now trades near $64 after falling about 47% from its January all-time high (ATH) of $12
Author  Beincrypto
16 hours ago
Silver (XAG) closed below its 200-day moving average on June 9 for the first time since April 2025. Silver price now trades near $64 after falling about 47% from its January all-time high (ATH) of $12
placeholder
Is the US Dollar Index (DXY) Headed Higher After a 15-Year Trendline Retest?The US Dollar Index (DXY) trades near 100.2 after retesting an ascending trendline that has supported it since May 2011. A resistance zone at 100.5 still caps the recovery.BeInCrypto examined the mont
Author  Beincrypto
16 hours ago
The US Dollar Index (DXY) trades near 100.2 after retesting an ascending trendline that has supported it since May 2011. A resistance zone at 100.5 still caps the recovery.BeInCrypto examined the mont
goTop
quote