Dividends Galore: 3 Vanguard ETFs to Buy for Consistent Passive Income You Can Retire Happily With

Vanguard is one of the top ETF providers I’ve long thought is the best in the business. Some of this has to do with the fact that the company is the original provider of exchange traded funds (ETFs), opening up the world of passive investing to millions of Americans. This revolutionary move has allowed investors to put capital to work in one broadly-diversified holding (with ultra-low fees), and benefit from compounding over the long-term by simply owning an index.

There are a myriad of Vanguard ETFs for investors to choose from, and thousands more from other ETF providers as well. That said, I’m going to highlight three of the top Vanguard funds I think are worth investing in right now, and why I think this is the case.

Vanguard S&P 500 ETF (VOO)

It should be no surprise that I kick off this list with one of Vanguard’s longest-tenured holdings, and one with an incredible assets under management figure which has crossed over the $1 trillion threshold on multiple occasions.

The Vanguard S&P 500 ETF (VOO) invests in all companies in the S&P 500, allowing investors to own a slice of perhaps the most important benchmark index in the world. These 500 companies are the largest, and widely perceived to be the highest-quality stocks the U.S. has to offer. So, for investors inside or outside the U.S. looking to benefit from the incredible compounding machine that is the U.S. stock market, VOO is often the preferred way for investors to do so.

Of course, investors who buy VOO ought to expect to ramp up their tech holdings, with mega-cap technology companies making up the majority of this index. However, given the broad diversification of this fund, there are plenty of other blue-chip stocks with rock-solid balance sheets and earnings growth potential which can power this index higher if we do see a broadening out of market returns over time.

Vanguard FTSE Developed Markets ETF (VEA)

I think an ETF which pairs very well with VOO for investors seeking a truly diversified portfolio is the Vanguard FTSE Developed Markets ETF (VEA).

That’s because this fund tracks the FTSE Developed All Cap (ex.-U.S.) Index. Thus, a mix of small, mid and large-cap names from other developed markets outside of the U.S. are included in this fund. Without U.S. stocks or higher-risk emerging markets companies included in this ETF, investors gain the same sort of blue-chip exposure to high-quality names they’re after with VOO, with less concentration risk from a sector or geopolitical standpoint.

I think more investors will look to international stocks as a way to offset some of the policy uncertainty coming out of the U.S. If that trend continues into 2026 (we saw this thesis play out profitably last year), then VEA could be an even better performer than VOO over the course of the next 12 months. We’ll see.

Vanguard Mid-Cap ETF (VO)

Another ETF I think is worth considering as a further diversification tool for investor portfolios is the Vanguard Mid-Cap ETF (VO). This ETF tracks all mid-cap companies in the U.S., covering nearly 300 stocks in a broad range of industries.

Importantly, this ETF is one that’s not heavily concentrated. The fund’s top 10 holdings account for less than 10% of the entire index. That means that from a diversification standpoint, VO is more of an equal-weight option for those seeking less exposure to mega-cap tech as we kick off 2026.

Personally, I think a portfolio that consists of these three funds should perform well over the long-term. This ETF could be a sneaky outperformer, if we do see a broadening trade pick up in 2026. I’m of the view that such a trade could be off most investors’ bingo cards, and that’s why I think positioning oneself with more small and mid-cap exposure right now could lead to outperformance over the medium-term.