This Is My No. 1 Recommended Vanguard ETF to Buy in 2026
Key Points
Vanguard’s low-fee mutual funds and ETFs make it easy for individual investors to build diversified portfolios.
The Vanguard Health Care ETF has outperformed the S&P 500 over the past six months.
- 10 stocks we like better than Vanguard World Fund - Vanguard Health Care ETF ›
Vanguard's low-cost mutual funds and exchange-traded funds (ETFs) have democratized wealth creation, making it simple for everyday investors to build diversified portfolios while retaining a bigger chunk of their investment returns.
If you're new to investing, a great place to start is the Vanguard S&P 500 ETF (NYSEMKT: VOO), which tracks all the stocks within the S&P 500 and aims to replicate the index's performance over time. But if you already have exposure to the broader market through VOO or its even more diversified sibling, the Vanguard Total Stock Market ETF (NYSEMKT: VTI), there's another Vanguard ETF you might consider adding in 2026.
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 »
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Healthcare stocks are showing signs of life
The Vanguard Health Care ETF (NYSEMKT: VHT) aims to mirror the performance of a benchmark index comprising more than 400 healthcare stocks. Over the past five years, VHT has lagged the S&P 500's total return by a country mile. But over the past six months, VHT has outperformed the S&P 500, suggesting that healthcare stocks are on the mend.
Data by YCharts.
With the bull market now into its fourth year, some pundits say it is due for a pullback. While nobody can predict what stocks will do in the short term, having some exposure to a defensive sector like healthcare could be ballast for your portfolio if economic conditions get dicey. People need healthcare regardless of what's going on in the stock market or the economy.
But healthcare isn't just a defensive play. One of healthcare's biggest tailwinds is the robust adoption of weight-loss drugs. Eli Lilly -- VHT's biggest holding -- has several GLP-1 medications that generate billions of dollars in annual revenue, and have more in the pipeline. Morgan Stanley analysts estimate that the global market for obesity drugs could reach $150 billion in sales by 2035, up from $15 billion in 2024.
VHT is up 2% so far in 2026, as of this writing. If you're looking for some diversification in a tech-heavy portfolio, this Vanguard ETF could be just what the doctor ordered.
Should you buy stock in Vanguard World Fund - Vanguard Health Care ETF right now?
Before you buy stock in Vanguard World Fund - Vanguard Health Care ETF, consider this:
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See the 10 stocks »
*Stock Advisor returns as of January 18, 2026.
Josh Cable has positions in Eli Lilly. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.
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