What is the best ETF to buy right now?

There are lots of good ETFs to buy in any market environment. In October 2026, the Vanguard Morningstar Growth ETF looked relatively more attractive than other top ETFs. Its price had underperformed the broader market over the past year (up about 13% by early October, compared with nearly 15% for the Vanguard 500 ETF and almost 24% for the Invesco QQQ Trust). As a result, the growth-focused ETF currently trades at 31 times earnings, making it cheaper than QQQ (over 35x). That puts VUG in a strong position to deliver higher total returns over the long term as its holdings continue to grow their revenues at above-average rates.

What is the most successful ETF?

The most successful ETF over the last 10 years is the VanEck Semiconductor ETF (NASDAQ:SMH). The fund focuses on semiconductor stocks and has delivered an average annualized total return of 34% over the past decade. Of note, the top four best-performing ETFs over the last decade focused on semiconductors, while all 10 of the best performers focused on tech stocks.

Are ETFs still a good investment?

ETFs can be very good investments. Many ETFs enable you to invest passively in a broader stock market index at a low cost, allowing you to earn market returns. Other ETFs are great options for those seeking passive income from dividend stocks or bonds. ETFs can also help investors earn market-beating returns by investing in sectors or groups of stocks growing at above-average rates (such as semiconductor or technology stocks).

What ETF pays the highest dividend?

According to data from ETFdb.com, dozens of ETFs offer dividend yields in the double digits as of early October 2026. However, many of the ETFs with the highest dividends are very small leveraged ETFs, making them exceptionally risky. Even so, several ETFs stand out for their double-digit yields, which they deliver by writing options. For example, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) uses a covered call strategy to generate options income on the Nasdaq-100. Meanwhile, the NEOS S&P 500 High Income ETF (CBOE: SPYI) employs a similar strategy on the S&P 500.

What’s the difference between ETFs and mutual funds?

The main difference between ETFs and mutual funds is that ETFs trade like stocks. You can buy and sell them through your regular brokerage account with no minimum investment. Many mutual funds require that you purchase them directly from the sponsor or through a financial advisor. Many mutual funds also have an investment minimum that can exceed $1,000.

What is a good ETF for beginners?

A good ETF for beginners is an index fund tracking the S&P 500, such as the Vanguard 500 ETF. It invests in 500 of the largest publicly traded companies in the U.S. and has a low expense ratio. Overall, it provides investors instant exposure to a diversified portfolio of top U.S. stocks at a very reasonable cost.

What is the best ETF to hold forever?

The best ETF to hold forever is an S&P 500 Index fund, such as the Vanguard 500 ETF. It provides broad exposure to the stock market at a very reasonable cost.

How much do I need to invest in ETFs to get $1,000 a month?

How much you need to invest in ETFs to get $1,000 a month in dividend income depends on the yield. For example, an S&P 500 index fund such as the Vanguard 500 ETF had a nearly 1.1% yield in early October 2026. At that rate, you'd need to invest $1.1 million to generate $12,000 of dividend income each year to hit a $1,000 a month target (the fund pays dividends quarterly). However, you'd need to invest less in a higher-yielding ETF such as the Schwab U.S. Dividend Equity ETF. With a 3.0% yield as of early October 2026, you'd only need to invest about $400,000 into the Schwab U.S. Dividend Equity ETF to generate $12,000 of annual dividend income.

7 Best ETFs to Buy in October 2026

Exchange-traded funds tend to be less volatile than individual stocks and provide exposure to a broad range of opportunities.

By Matthew DiLallo – Updated Oct 1, 2026 at 4:31 PM EST | Fact-checked by Frank Bass

Key Points

ETFs offer diversified investment options with lower fees and taxes than mutual funds.
The Vanguard S&P 500 ETF has $1.0 trillion AUM and a minimal 0.03% expense ratio.
Schwab U.S. Dividend Equity ETF provides a 3% yield and rising dividends.

Exchange-traded funds (ETFs) are investment vehicles that trade like a stock but give investors ownership of a broad range of stocks or other assets. ETFs offer investors an appealing alternative to owning individual stocks. They can also be great complements to an investor's stock portfolio.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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There are all kinds of ETFs available. Some track major indexes, such as the S&P 500 or the Nasdaq Composite. Others give investors exposure to specific regions, such as China or emerging markets. And some ETFs focus on specific sectors, such as technology or banking, or on specific types of stocks, such as dividend or growth stocks. Additionally, some ETFs focus on investment themes, such as robotics, space, or quantum computing.

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An infographic outlining three reasons to consider investing in ETFs. — Image source: The Motley Fool.

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In a challenging market environment, ETFs can help reduce the risks of owning an individual stock, as they tend to be less volatile. Although they're similar in principle to mutual funds, they're easier to buy and sell than typical mutual funds and tend to have lower fees. If you're looking for ETFs to invest in, keep reading to see seven of the best.

Top seven ETFs to buy now

There are hundreds of ETFs to choose from. Here are seven of the best ETFs to buy this month.

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Data source: ETF.com. Data as of October 1, 2026.
Exchange-Traded Fund (ETF) and Ticker	Assets Under Management (AUM)	Expense Ratio	Description
Vanguard S&P 500 ETF (NYSEMKT:VOO)	$1.0 trillion	0.03%	Fund that tracks the S&P 500
Invesco QQQ Trust (NASDAQ:QQQ)	$497.8 billion	0.18%	Fund that tracks the Nasdaq-100
Vanguard Morningstar Growth ETF (NYSEMKT:VUG)	$232.4 billion	0.03%	ETF that invests in large-cap U.S. growth stocks
iShares Core S&P Small-Cap ETF (NYSEMKT:IJR)	$103.2 billion	0.06%	Fund that tracks the S&P SmallCap 600 index
Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD)	$108.9 billion	0.06%	ETF that invests in 100 high-yielding U.S. stocks with histories of increasing their dividends
Vanguard Morningstar Total Stock Market ETF (NYSEMKT:VTI)	$690.3 billion	0.03%	Fund that holds more than 3,500 U.S. stocks of all sizes
iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS)

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1. Vanguard S&P 500 ETF

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NYSEMKT: VOO

Vanguard S&P 500 ETF

Today's Change

(0.01%) $0.07

Current Price

$715.20

Key Data Points

AUM

$1.8T

Dividend Yield

1.04%

Expense Ratio

0.03%

Top Holdings

NVDA

8.09%

AAPL

7.04%

MSFT

5.70%

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Vanguard created the index fund. If you're looking for an S&P 500 index fund, the Vanguard S&P 500 ETF (VOO +0.01%) is hard to beat. It offers an ultra-low expense ratio of just 0.03%, compared to the average of 0.23% for similar funds. This lower expense ratio means that, for every $10,000 invested in the fund, investors will pay just $3 in annual fees, versus $23 in a typical competing fund.

The Vanguard S&P 500 ETF is one of the largest and most popular ETFs. It was the largest ETF by assets under management (AUM) in September 2026 at over $1 trillion. The ETF's combination of low costs and large size makes it an excellent choice for investing in the broader market. Because of its history, diversification, and exposure to blue chip stocks, many investors consider it one of the best ETFs to buy and hold.

The S&P 500 has an excellent track record of delivering returns for investors. Over the last 50 years, the average stock market return, as measured by the S&P 500, has been nearly 10% when dividends are reinvested, according to S&P Dow Jones Indices. The Vanguard S&P 500 ETF is a low-cost way to capture the market's returns and earn a little income (1% yield as of October 2026).

2. Invesco QQQ Trust

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NASDAQ: QQQ

Invesco QQQ Trust

Today's Change

(-0.33%) $-2.47

Current Price

$743.57

Key Data Points

AUM

$506B

Dividend Yield

0.42%

Expense Ratio

0.18%

Top Holdings

NVDA

8.20%

AAPL

7.48%

MSFT

6.04%

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If you're looking to gain exposure to big tech stocks, Invesco QQQ Trust (QQQ -0.33%) is an excellent choice. The ETF tracks the Nasdaq-100 index, which includes 100 of the Nasdaq's largest nonfinancial companies.

The top stocks in the ETF are Nvidia (NVDA +0.97%), Apple (AAPL +0.09%), Microsoft (MSFT +0.43%), Broadcom (AVGO +0.73%), and Amazon (AMZN -0.37%).

As of October 2026, the Invesco QQQ Trust had generated a total return of more than 560% over the past decade. To put that into perspective, a $10,000 investment made in this ETF 10 years ago would be worth over $66,000 today.

The Nasdaq-100's focus on innovative technology companies positions it to continue delivering strong total returns, especially as artificial intelligence (AI) accelerates growth in the tech sector in the coming years.

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3. Vanguard Morningstar Growth ETF

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NYSEMKT: VUG

Vanguard Morningstar Growth ETF

Today's Change

(0.12%) $0.11

Current Price

$91.75

Key Data Points

AUM

$385B

Dividend Yield

1.26%

Expense Ratio

0.03%

Top Holdings

NVDA

13.63%

AAPL

12.49%

MSFT

10.13%

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If you want to invest in growth stocks but don't want to be an active stock picker, the Vanguard Morningstar Growth ETF (VUG +0.12%) makes that easy. The ETF holds large-cap growth stocks and tracks the Morningstar U.S. Large Cap Growth Index.

Like Invesco QQQ Trust and Vanguard S&P 500, the Vanguard Morningstar Growth ETF's biggest holdings are Nvidia, Apple, and Microsoft. Those are just some of the 147 growth stocks the ETF held as of October 2026.

4. iShares Core S&P Small-Cap ETF

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NYSEMKT: IJR

iShares Core S&P Small-Cap ETF

Today's Change

(0.10%) $0.13

Current Price

$137.60

Key Data Points

AUM

$103B

Dividend Yield

1.24%

Expense Ratio

0.06%

Top Holdings

GKOS

0.58%

MTCH

0.56%

PTGX

0.55%

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The iShares Core S&P Small-Cap ETF (IJR +0.10%) provides broad exposure to small-cap stocks. Small caps tend to be more volatile than the broader market because they may be less profitable or financially weaker than their large-cap counterparts. As a result, small caps tend to be riskier during a downturn because they may not have the same access to capital.

This ETF helps mute some of that risk by holding a large basket of small-cap stocks. As of October 2026, it held 643 stocks and had a fairly low concentration of holdings. Its top 10 holdings comprised a little more than 5% of the total.

5. Schwab U.S. Dividend Equity ETF

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NYSEMKT: SCHD

Schwab U.S. Dividend Equity ETF

Today's Change

(0.33%) $0.11

Current Price

$33.37

Key Data Points

AUM

$111B

Dividend Yield

3.16%

Expense Ratio

0.06%

Top Holdings

TXN

4.62%

4.34%

QCOM

4.29%

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Dividend stocks are great long-term investments. Over the last 50 years, dividend-paying companies outperformed nondividend payers by more than 2-to-1 (9.2% average annual total return versus 4.2% for nondividend payers, according to data from Ned Davis Research and Hartford Funds). The best performance came from dividend growers and initiators (10.2% versus 6.9% for companies with no change in their dividend policy).

The Schwab U.S. Dividend Equity ETF (SCHD +0.33%) provides exposure to high-yielding U.S. stocks with a history of dividend growth. It tracks the Dow Jones U.S. Dividend 100, which measures the performance of 100 top dividend stocks based on several quality characteristics, including dividend yield and five-year dividend growth rate. Among its 10 largest holdings in October 2026 were notable dividend payers Coca-Cola (KO +0.36%) and Verizon (VZ +1.75%).

The ETF offers a relatively attractive dividend yield. As of October 2026, it had a trailing-12-month yield of 3%, triple the 1% dividend yield of an S&P 500 index fund. The fund should also deliver price appreciation as the underlying companies grow their earnings and dividends.

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6. Vanguard Morningstar Total Stock Market ETF

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NYSEMKT: VTI

Vanguard Morningstar Total Stock Market ETF

Today's Change

(-0.07%) $-0.25

Current Price

$381.32

Key Data Points

AUM

$2.3T

Dividend Yield

1.04%

Expense Ratio

0.03%

Top Holdings

NVDA

6.88%

AAPL

6.30%

MSFT

5.11%

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Although the S&P 500 is considered a broad-market index, it gives you exposure to only 500 large-cap U.S. stocks. If you want to own all the stocks in the U.S. market, the best way to do it is through a total stock market fund such as the Vanguard Morningstar Total Stock Market ETF (VTI -0.07%).

As of October 2026, the fund held 3,507 companies, including large-, mid-, and small-cap stocks. Because its holdings encompass the S&P 500, its largest positions are the same as for the broad market index.

Vanguard Morningstar Total Stock Market ETF aims to track the Morningstar U.S. Total Stock Market index. It also provides a small amount of income at a 1% yield as of October 2026.

7. iShares Core MSCI Total International Stock ETF

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NASDAQ: IXUS

iShares Trust - iShares Core Msci Total International Stock ETF

Today's Change

(0.10%) $0.09

Current Price

$94.66

Key Data Points

AUM

$59B

Dividend Yield

2.96%

Expense Ratio

0.07%

Top Holdings

2330.TW

4.62%

005930.KS

2.07%

ASML.AS

1.61%

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If it's international markets you want, the iShares Core MSCI Total International Stock ETF (IXUS +0.10%) is a good way to go. The fund derives its holdings from an MSCI global index and subtracts the U.S. listings. It held 4,584 stocks in October 2026, including large-, mid-, and small-cap companies worldwide.

The ETF offers diversified international exposure. Its top five geographies were:

Japan: 15.7% of the fund's holdings
Taiwan: 9.4%
United Kingdom: 8.3%
Canada: 8.1%
South Korea: 6.8%

The iShares Core MSCI Total International Stock ETF has an attractive dividend yield of 2.9% based on the last 12 months of dividend payments (as of October 2026).

Tax considerations for ETFs

ETFs tend to be more tax-efficient compared to mutual funds. However, investors still need to consider taxes when holding an ETF in a regular brokerage account.

Investors will pay two types of taxes on ETFs that hold stocks or bonds:

Taxes on income: ETFs that hold dividend-paying stocks must distribute the income from those dividends to investors at least once each year. The IRS taxes Qualified dividends at the lower federal long-term capital gains rates of 0%, 15%, or 20%, while taxing non-qualified dividends and interest income from bonds as ordinary income, up to 37%.
Taxes on capital gains: If you sell an equity or bond ETF, you'll pay taxes on the gain depending on how long you held the fund and your annual income. ETFs held for more than a year get taxed at the lower federal long-term capital gains rates of 0%, 15%, or 20%. Meanwhile, the IRS taxes funds held less than a year at the short-term capital gains rate, which is the same as your ordinary tax rate (up to 37%).

Types of ETFs

There are several types of ETFs that investors can buy, including:

Many of the largest ETFs track a broad market index, such as the or the . These funds enable investors to gain diversified market exposure through a single low-cost fund.

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Should you invest in ETFs?

Here's how to decide whether investing in ETFs is right for you compared to mutual funds or investing in individual stocks. Some positives include:

They're potentially lower-risk and less volatile than investing in individual stocks.
Like mutual funds, they're passive investments that typically offer built-in diversification from day one.
They enable you to target investment in a trend or theme through a simple investment vehicle.
Unlike mutual funds, they offer the trading liquidity of stocks.
ETFs are very transparent investments.
They can be a possible source of passive income, depending on the ETF's investment strategy.

However, there are also some drawbacks to investing in ETFs that investors need to consider, including:

They have the potential to underperform a portfolio of individual stocks.
The higher management fees of some funds can eat into their returns.
Leverage and other factors can cause some funds to deliver poor long-term performance.

For most investors, holding at least one or two high-quality ETFs makes sense, especially if you want to eliminate some of the work of picking individual stocks. The list above offers a good starting point if you're looking for the best ETFs to buy.

How to choose an ETF

Once you've decided to invest in ETFs, here are the characteristics to evaluate when comparing funds:

Whether the investment strategy (i.e., growth, income, or specific theme) fits your needs
How the ETF's expense ratio compares to similar funds
Its past performance compared to similar funds and its benchmark
Its size and trading volume versus other similar funds.
Check whether it uses leverage, since that impacts the risk profile.

Tips for Investing in ETFs

Here are some actual numbers and rules of thumb to apply when investing in ETFs:

Avoid small ETFs (with assets under management of less than $200 million) due to their greater risk of manipulation and closure.
Look for ETFs with expense ratios well below 1%.
Use ETFs to target themes you believe will deliver long-term outperformance (e.g., AI-focused funds or clean energy ETFs).
Avoid most funds that use leverage to increase returns.
Hold higher-yielding ETFs (like SCHD) in a tax-advantaged account, given the tax considerations of dividend income.

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Buying the best ETFs: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Amazon, Apple, Broadcom, Chevron, Schwab U.S. Dividend Equity ETF, and Verizon Communications and has the following options: short May 2026 $280 calls on Apple. The Motley Fool has positions in and recommends Amazon, Apple, Chevron, Microsoft, Nvidia, Vanguard Growth ETF, Vanguard S&P 500 ETF, Vanguard Total Stock Market ETF, and iShares Core S&P Small-Cap ETF. The Motley Fool recommends Broadcom and Verizon Communications. The Motley Fool has a disclosure policy.

7 Best ETFs to Buy in October 2026

Exchange-traded funds tend to be less volatile than individual stocks and provide exposure to a broad range of opportunities.

Key Points

Top seven ETFs to buy now

1. Vanguard S&P 500 ETF

Key Data Points

2. Invesco QQQ Trust

Key Data Points

3. Vanguard Morningstar Growth ETF

Key Data Points

4. iShares Core S&P Small-Cap ETF

Key Data Points

5. Schwab U.S. Dividend Equity ETF

Key Data Points

6. Vanguard Morningstar Total Stock Market ETF

Key Data Points

7. iShares Core MSCI Total International Stock ETF

Key Data Points

Tax considerations for ETFs

Types of ETFs

Should you invest in ETFs?

How to choose an ETF

Tips for Investing in ETFs

Related investing topics

Best ETFs for Beginners and How to Invest

The Best (and Only) Dow Jones ETF to Consider in 2026

Best Russell 2000 ETFs to Buy in 2026

6 Best Vanguard ETFs for 2026 and How to Invest

Buying the best ETFs: FAQ

About the Author

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Best ETFs for Beginners and How to Invest

The Best (and Only) Dow Jones ETF to Consider in 2026

Best Russell 2000 ETFs to Buy in 2026

6 Best Vanguard ETFs for 2026 and How to Invest

Buying the best ETFs: FAQ

Top seven ETFs to buy now

1. Vanguard S&P 500 ETF

3. Vanguard Morningstar Growth ETF

6. Vanguard Morningstar Total Stock Market ETF

Should you invest in ETFs?

How to choose an ETF

Tips for Investing in ETFs

Related investing topics

2. Invesco QQQ Trust

Key Data Points

What is the best ETF to buy right now?

What is the most successful ETF?

Are ETFs still a good investment?

What ETF pays the highest dividend?

What’s the difference between ETFs and mutual funds?

What is a good ETF for beginners?

What is the best ETF to hold forever?

How much do I need to invest in ETFs to get $1,000 a month?

4. iShares Core S&P Small-Cap ETF

5. Schwab U.S. Dividend Equity ETF

7. iShares Core MSCI Total International Stock ETF

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Tax considerations for ETFs

Types of ETFs