VOO & Two More Vanguard ETFs to Buy Before 2026

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True to its name, Vanguard stands on the vanguard of the exchange traded fund (ETF) revolution. Browsing through Vanguard’s array of ETFs might overwhelm you with the choices available to modern investors.

To point you in the right direction, I’ve selected three Vanguard ETFs to consider buying before the end of 2025. Don’t just think about 2026, though, as this three-pack of funds could provide a lifetime of passive income and share-price growth. If you’re ready to get started, we’ll kick off with what would probably be Vanguard’s most famous ETF.

Vanguard S&P 500 ETF (VOO)

Years ago, Vanguard truly became a trailblazer with the Vanguard S&P 500 ETF (NYSEARCA:VOO). With the VOO ETF, ultra-low-cost investing became a possibility for legions of investors.

As its name suggests, the Vanguard S&P 500 ETF tracks the roughly 500-member large-cap stock market index known as the S&P 500. Within that index, you’ll notice blue-chip brand names like Walmart (NYSE:WMT), Apple (NASDAQ:AAPL), Home Depot (NYSE:HD), Coca-Cola (NYSE:KO), and Bank of America (NYSE:BAC).

If you must buy a fund before 2026, the Vanguard S&P 500 ETF is as valid a choice as any. VOO is highly liquid (it has plenty of daily trading volume), and it will immediately diversify your portfolio into hundreds of well-established U.S. companies.

Plus, the Vanguard S&P 500 ETF has a very low expense ratio, which is the fund’s annualized operating fees that are automatically deducted from the stock price. In the case of the VOO ETF, its expense ratio is just 0.03%, which would equate to $0.03 per share per year for every $100 invested in the fund.

Additionally, the Vanguard S&P 500 ETF features a forward annual dividend yield of 1.12%. This source of passive income will be a nice bonus in 2026 for the many loyal investors in the VOO ETF.

Getting exposure to 500 large-cap stocks with the Vanguard S&P 500 ETF is a great start. Yet, it’s possible to achieve even broader diversification by adding a couple more Vanguard ETFs to your portfolio. Let’s forge ahead, then, with a fund that’s even more diversified than VOO.

Vanguard Russell 2000 ETF (VTWO)

If you only hold the Vanguard S&P 500 ETF and nothing else, you’ll miss out on the potential growth of America’s up-and-coming small businesses. Some of the nation’s small-cap companies are today’s and tomorrow’s innovators in multiple market sectors.

However, it’s risky to just invest in one or two small-cap firms. Instead, you can simultaneously get exposure to approximately 2,000 small-cap stocks with the Vanguard Russell 2000 ETF (NYSEARCA:VTWO).

Since the Vanguard Russell 2000 ETF tracks the Russell 2000 index, which includes thousands of small-cap stocks, you’ll achieve deep diversification and de-risking with this fund. Even if a handful of Russell 2000 stocks decline, it shouldn’t put too much of a dent in your bottom line.

Sticking to the theme of low-cost funds, the Vanguard Russell 2000 ETF only charges a 0.07% expense ratio. For a mere $0.07 per year per $100 invested in VTWO, you’ll be immersed in the world of small-cap stocks without having to do any individual stock picking.

Between the Vanguard S&P 500 ETF and the Vanguard Russell 2000 ETF, your portfolio would be vastly diversified in 2026. Furthermore, you’ll receive some income as the VTWO ETF pays a forward annual dividend yield of 1.19%. However, you can add a third Vanguard fund if you really want to boost your passive income opportunities, so let’s finish off with my third pick right now.

Vanguard Energy ETF (VDE)

Income collectors might not be very impressed with the dividend yields of VOO and VTWO, which are decent but not outstanding. For potentially bigger quarterly payouts in 2026, you’ll probably want to add a third Vanguard ETF that offers a higher yield.

To that end, you’ll definitely want to consider grabbing some shares of the Vanguard Energy ETF (NYSEARCA:VDE). Once again, we’re in low-cost territory since the VDE ETF’s annualized expense ratio is only 0.09%.

Granted, there’s slightly more risk with the Vanguard Energy ETF as it’s focused on just one sector, the energy sector. Nevertheless, there’s a respectable measure of diversification with VDE since its holdings list includes 111 members.

Among those members are huge energy companies such as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), and ConocoPhillips (NYSE:COP). Even though the oil price happens to be down in 2025, these gigantic companies should easily weather the energy industry’s ups and downs in 2026.

Besides, if the oil price stabilizes and/or recovers, there could be substantial share-price gains in store for Vanguard Energy ETF. And while you’re waiting for a possible energy market recovery, you can sit back and enjoy the VDE ETF’s juicy 3.09% forward annual dividend yield. Hence, with balanced positions in VDE along with VOO and VTWO, you’ll have a low-fee, low-risk investment strategy for the coming year.

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