Here comes a new year, bringing with it much anticipation. Investors are often on the lookout for promising stocks, and it can be fun to wonder which stocks will end up being the best performers of 2026. (As of Dec. 9, some of the best performers of 2025 have been Robinhood Markets, up 221% year to date; Western Digital, up 291%; and Palantir Technologies, up 142%.)
So, how can you position yourself to own the best stocks of 2026? Well, a great way to do so is to invest in some powerful exchange-traded funds (ETFs). (Remember that ETFs are essentially funds that trade like stocks.)
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Here are a few to consider for your long-term stock portfolio.
1. A simple, broad index fund
Instead of looking for a needle in a haystack, you can just buy the haystack -- a broad index fund, like one that tracks the S&P 500 index. Before you start yawning, note that all of the "Magnificent Seven" stocks -- Apple, Amazon, (Google parent) Alphabet, (Facebook parent) Meta Platforms, Microsoft, Nvidia, and Tesla -- are in the S&P 500. Indeed, they are among the top 10 components, which collectively account for approximately 40% of the S&P 500's value.
The S&P 500 has averaged annual returns close to 10% (ignoring inflation) over long periods, and over the last decade, it has averaged around 14.8%. You can do quite well, indeed, with an investment in such a simple yet powerful fund.
You could cast an even wider net by investing in an index fund that aims to deliver the performance of the total U.S. stock market or one that tracks the total world stock market. Do so, and it will be hard not to end up invested in the best stocks of 2026.
Here are three solid index funds to consider: the Vanguard S&P 500 ETF (VOO 1.53%), Vanguard Total Stock Market ETF, and the Vanguard Total World Stock ETF.
NYSEMKT: VOO
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2. Vanguard Growth ETF
What if you want to aim for faster growth? Well, then, perhaps focus on some growth-stock ETFs, such as the Vanguard Growth ETF (VUG 1.77%). It tracks the CRSP U.S. Large Cap Growth Index, which focuses on large companies growing at rates faster than the average. Over the past decade, it has averaged annual gains of 17.5%. (Remember, though, that such outsized gains are never guaranteed, and should the market pull back in 2026, growth stocks may fall harder than other stocks, though they'll likely eventually recover.)
The Vanguard Growth ETF holds 160 stocks, with about half of them in the technology sector and about 14% in each of the consumer cyclical and communication services sectors.
Since the ETF is focused on faster growers, it is likely to include the powerhouse performers of 2026 and give them a greater weighting than a broader index fund would.
3. Tech-stock ETFs
If you think the best-performing stocks of 2025 will likely be tech stocks, you might want to invest in some tech-heavy ETFs. Two good possibilities are the Vanguard Information Technology ETF (VGT 1.96%) and the State Street Technology Select Sector SPDR ETF (XLK 1.84%). Both sport average annual gains north of 22% over the past decade.
The Vanguard ETF is invested in 300-plus tech stocks, while the State Street ETF is more focused, holding about 70 stocks.
4. Semiconductor-focused ETFs
Let's keep playing this game. What if you wanted even greater growth rates? You might consider semiconductor stocks, which include market darling Nvidia. Two promising ones to consider are the VanEck Semiconductor ETF and the iShares Semiconductor ETF. The former has posted average annual gains of 31% over the past decade, while the latter has averaged 27.7%.
Again, though, it's quite possible these torrid growth rates won't continue into 2026. No one knows. So think twice before parking all your money in such ETFs.
5. Smaller-company ETFs
Most of the companies in most of the ETFs above will be fairly large companies. Some expect smaller companies to have a good year in 2026. You can certainly benefit if that proves to be true and if you've invested in a very broad-market fund. But if you'd like to target smaller and mid-sized companies specifically, there are ETFs for that.
One promising small-cap index fund to consider is the State Street SPDR Portfolio S&P 600 Small-Cap ETF. The Vanguard Mid-Cap Growth Index Fund ETF can put you in about 120 mid-sized companies. The former fund has averaged annual gains of 9.7% over the past decade, while the latter has averaged nearly 12%.
So there you have it: multiple ways to invest in the best stocks of 2026 plus lots of other stocks. You might want to spread your dollars over a handful of these or other funds.
