The Top 5 ETFs Beginners Should Buy in 2026 (Low-Cost, High-Potential Options)

Starting to invest in 2026 doesn't require chasing hot trends or complex strategies—especially for beginners. The smartest approach focuses on low-cost, broadly diversified exchange-traded funds (ETFs) that track major indexes and have proven track records of long-term growth. These options avoid over-hyped, niche, or high-risk funds like single-sector AI plays or speculative themes that can swing wildly. Instead, they emphasize steady compounding through exposure to thousands of companies, often favored by self-made millionaires and long-term investors like Warren Buffett, who advocate simple, low-fee index investing.

These ETFs stand out for their rock-bottom expense ratios (typically 0.03% or less), massive assets under management for liquidity, and historical performance that has helped build wealth over decades. They provide instant diversification, reducing the risk of picking individual stocks. Beginners can start small—many brokers allow fractional shares—and hold them indefinitely in a brokerage or retirement account. Below are five top picks for 2026, with explanations of why they're beginner-friendly and millionaire favorites.

1. Vanguard S&P 500 ETF (VOO)

VOO tracks the S&P 500 index, giving you ownership in the 500 largest U.S. companies like Apple, Microsoft, and Amazon. With an expense ratio of just 0.03%—one of the lowest available—and over $800 billion in assets, it's incredibly efficient and liquid. This ETF has delivered strong average annual returns historically, often around 10% long-term including dividends, making it a core holding for passive investors.

Millionaires and investing legends love VOO (or its mutual fund equivalent) because it captures the growth of the American economy without stock-picking guesswork. Warren Buffett famously recommends S&P 500 index funds for most people, noting that they outperform the majority of active managers over time. For beginners in 2026, VOO offers a simple "set it and forget it" way to participate in market upside while keeping costs minimal—perfect as your primary U.S. equity exposure.

2. Vanguard Total Stock Market ETF (VTI)

If you want even broader U.S. coverage than the S&P 500, VTI is the go-to. It includes nearly the entire investable U.S. stock market—over 3,500 stocks across large, mid, small, and micro-cap companies—with the same ultra-low 0.03% expense ratio. This added diversification to smaller firms can provide extra growth potential over decades without significantly increasing risk.

Wealthy long-term investors favor VTI because it truly owns "the whole market," aligning with the philosophy that broad indexing beats trying to time sectors or styles. It's a millionaire staple for those building wealth steadily—many FIRE (Financial Independence, Retire Early) enthusiasts use it as their core holding. Beginners appreciate how VTI simplifies investing: one fund covers everything domestic, reducing the need for multiple ETFs early on.

3. Schwab U.S. Broad Market ETF (SCHB)

SCHB mirrors VTI closely, tracking a broad U.S. index with thousands of stocks and an identical 0.03% expense ratio. It's from Schwab, which makes it especially convenient if you already bank or invest there (no trading fees, easy integration). Performance tracks the total U.S. market almost identically to VTI.

This ETF appeals to cost-conscious millionaires who prioritize rock-bottom fees and simplicity—Schwab's low-cost ethos attracts those who've built wealth through disciplined, boring investing. For beginners, SCHB is an excellent alternative if you're in the Schwab ecosystem or just want another ultra-cheap broad-market option with high liquidity and reliability.

4. Vanguard Total World Stock ETF (VT)

For true global diversification, VT holds stocks from developed and emerging markets worldwide—over 9,000 companies in one fund, with a low 0.07% expense ratio. It gives balanced exposure: roughly 60% U.S., 40% international, capturing growth wherever it happens.

Long-term wealth builders love VT because it follows the "own the world" strategy—diversifying beyond one country reduces risk from U.S.-specific downturns. Many sophisticated investors (including those with seven-figure portfolios) include global funds like this to hedge and capture international upside. Beginners benefit from VT's all-in-one global approach—no need to pick separate U.S. and international funds initially.

5. Vanguard FTSE Developed Markets ETF (VEA)

If you want international exposure focused on stable developed markets (Europe, Japan, Australia, etc.) without emerging-market volatility, VEA tracks large and mid-cap stocks outside the U.S. with a 0.05% expense ratio. It's less broad than VT but avoids higher-risk emerging economies.

Millionaires often pair U.S. funds with something like VEA for better global balance—international stocks can zig when U.S. zags, smoothing returns. It's a favorite for those building diversified, resilient portfolios. Beginners like VEA as a simple add-on to U.S.-heavy holdings, adding diversification without complexity.

These five ETFs—VOO, VTI, SCHB, VT, and VEA—form a solid foundation for beginners in 2026. They're low-cost, diversified, and backed by decades of data showing that patient indexing builds wealth reliably. Start with one (like VOO or VTI for U.S. focus), add others as your portfolio grows, and contribute consistently. Always consider your risk tolerance and goals—consult a financial advisor if needed. Investing is a marathon; these options help you run it efficiently. If you'd like allocation ideas or comparisons, let me know!