You opened a brokerage account. Maybe you even funded it. Now you’re staring at a search bar with 3,000+ ETFs and no idea where to start.
This is where most new investors stall. Not because investing is hard — but because the options are overwhelming. So here’s the shortcut: you don’t need 3,000 ETFs. You need one to three, and you need them to be cheap, diversified, and boring enough to hold for decades.
These are the 7 best ETFs for beginners in 2026 — organized by what they actually do, who they’re for, and what they cost. No filler picks. Every fund on this list manages billions in real money and charges less than a cup of coffee per $10,000 invested.
Invest $100 a month into VOO for 10 years and you end up with roughly $28,029. Do the same with VXUS and you get $16,840. That $11,189 gap — same discipline, same decade — is the difference a single fund choice makes.
Whether you’re building your first Roth IRA or just trying to figure out which best ETFs for beginners actually deserve the label — this is the list.
The 7 Best ETFs for Beginners at a Glance
Before the deep dive, here’s the full lineup of best ETFs for beginners. Every fund below costs $6 or less per $10,000 invested annually — except QQQ at $18, which earns its spot with a 25-year track record.
| Tier | ETF | What It Holds | Expense Ratio | Yield | Holdings |
|---|---|---|---|---|---|
| 🟢 Core | VOO | S&P 500 (large-cap U.S.) | 0.03% | 1.1% | 500+ |
| 🟢 Core | VTI | Total U.S. stock market | 0.03% | 1.1% | 3,600+ |
| 🌍 Global | VT | Every stock market on earth | 0.06% | 1.6% | 9,800+ |
| 🌍 Global | VXUS | International (ex-U.S.) | 0.05% | 2.9% | 8,700+ |
| 💰 Income | SCHD | 100 quality U.S. dividend stocks | 0.06% | 3.4% | 100 |
| 🚀 Growth | VUG | U.S. large-cap growth | 0.03% | 0.4% | 164 |
| 🚀 Growth | QQQ | Nasdaq-100 (tech-heavy) | 0.18% | 0.5% | 100 |
Data as of February 2026. Yields are trailing 12-month. Expense ratios from fund providers. Sources: Vanguard, Schwab, Invesco.
Lower risk (left) → Higher risk (right). Based on historical volatility and max drawdown.
🟢 Core U.S. Equity — The Foundation
Every portfolio needs a center of gravity. Among the best ETFs for beginners, these two core funds appear most often — and you only need one.
VOO — Vanguard S&P 500 ETF
What it is: The 500 largest publicly traded U.S. companies in a single fund. Apple, Microsoft, Amazon, Nvidia — they’re all here. VOO tracks the S&P 500, the benchmark that roughly 90% of professional fund managers fail to beat over 15-year periods.
Why it belongs in a beginner portfolio: $857 billion in assets makes VOO the largest ETF on the planet. That kind of scale means razor-thin costs (0.03%) and nearly zero tracking error. Over the past 10 years, $10,000 in VOO grew to approximately $42,000 with dividends reinvested.
Risk to know: VOO holds only large-cap stocks. It skips mid-caps, small-caps, and everything outside the United States. And the top 10 holdings now account for nearly 40% of the fund — a concentration level that didn’t exist a decade ago. A tech-led downturn would hit VOO harder than most beginners expect. Read the full VOO ETF review.
VTI — Vanguard Total Stock Market ETF
What it is: The entire U.S. stock market — over 3,600 companies from mega-cap to micro-cap. VTI includes everything VOO holds, plus mid-cap and small-cap stocks that VOO leaves out.
Why it belongs in a beginner portfolio: Same 0.03% fee as VOO, but broader exposure. The extra small- and mid-cap stocks have historically delivered higher long-term returns than large-caps alone, though with more volatility. VTI is a one-fund solution for U.S. equity exposure.
Risk to know: VTI’s performance is still dominated by the same mega-cap tech stocks as VOO — they make up roughly 30% of the fund. The small-cap “bonus” only shows up over very long holding periods.
If you’re choosing between VOO and VTI, the difference over 10 years is typically less than $500 on a $10,000 investment. Read the full VTI ETF review.
🌍 Global Diversification — Beyond U.S. Borders
The U.S. has dominated global equity returns since 2010. But that dominance isn’t guaranteed to continue. International stocks were the better performers for most of the 2000s decade. For any list of best ETFs for beginners to be complete, it needs at least one fund that looks beyond U.S. borders. These two solve that problem in different ways.
VT — Vanguard Total World Stock ETF
What it is: Every investable stock market on earth — nearly 9,800 companies across 49 countries. The U.S. makes up about 62% of the fund, with the rest spread across developed and emerging markets. One fund, one decision, global coverage.
Why it belongs in a beginner portfolio: VT is the ultimate “set it and forget it” ETF. It automatically rebalances between U.S. and international markets based on market capitalization. No second fund needed. No allocation decisions. At 0.06%, it costs $6 per $10,000 invested — that’s the price of true global diversification.
Risk to know: International stocks have dragged down VT’s returns compared to U.S.-only funds like VOO over the past decade. VT’s 10-year annualized return runs about 3–4 percentage points below VOO. If you believe U.S. dominance will persist, VT’s international weighting works against you. That’s the trade for geographic diversification.
VXUS — Vanguard Total International Stock ETF
What it is: Every stock market except the United States — roughly 8,700 companies across 49 countries. Japan, the UK, China, India, Germany, and France are the top country exposures.
Why it belongs in a beginner portfolio: VXUS is the complement to VTI or VOO. Together, VTI + VXUS cover the entire global stock market — the same exposure as VT, but with the ability to control the ratio yourself. A common approach is to keep the majority in U.S. stocks and allocate the remainder to international.
The 2.9% dividend yield is also substantially higher than U.S. funds. Read the full VXUS ETF review.
Risk to know: VXUS has underperformed U.S. stocks for over a decade. Currency fluctuations add volatility that doesn’t show up in U.S.-only funds. Emerging market exposure (roughly 25% of the fund) carries political and economic risks that developed markets don’t.
Even as one of the best ETFs for beginners seeking diversification, VXUS requires patience — potentially years before the benefit materializes.
💰 Dividend Income — Getting Paid to Hold
Not every beginner needs dividends. But among the best ETFs for beginners who want income, dividend funds provide a tangible reward for staying invested.
SCHD — Schwab U.S. Dividend Equity ETF
What it is: 100 U.S. companies hand-picked for dividend quality, cash flow strength, and return on equity. SCHD doesn’t just chase the highest yields — it screens for companies that can sustain and grow their dividends over time. Lockheed Martin, Texas Instruments, ConocoPhillips, and Coca-Cola are among its largest holdings.
Why it belongs in a beginner portfolio: SCHD yields roughly 3.4% — more than triple what VOO pays. That’s $340 per year on a $10,000 investment, paid quarterly. The fund has increased its annual dividend every year since inception in 2011. With $84 billion in assets and a 0.06% expense ratio, SCHD combines income with institutional-grade quality screening.
Risk to know: SCHD deliberately excludes the fastest-growing tech companies because they don’t pay meaningful dividends. That’s why SCHD has lagged VOO in total return over the past five years.
SCHD’s strength — income — comes at the cost of growth. Investors who don’t need cash flow today may find that reinvesting VOO’s price appreciation generates more wealth over 20+ years. Read the full SCHD ETF review.
🚀 Growth Tilt — Higher Return, Higher Volatility
Growth ETFs concentrate your portfolio in companies that reinvest profits into expansion rather than paying dividends. The upside? Historically higher returns. The cost? Bigger drawdowns when markets turn. These are the best ETFs for beginners with a high risk tolerance and a long time horizon.
VUG — Vanguard Growth ETF
What it is: 164 of the largest U.S. growth stocks — essentially the growth half of the S&P 500. Apple, Microsoft, Nvidia, Amazon, and Meta make up over 45% of the fund. VUG filters out value stocks, financials, and slower-growing sectors.
Why it belongs in a beginner portfolio: At 0.03%, VUG is the cheapest way to tilt toward growth. Over the past 10 years, VUG has outperformed VOO by a meaningful margin, driven by the tech sector’s dominance. For a younger investor with a 20+ year horizon, that growth premium compounds dramatically.
Risk to know: VUG dropped -33% in 2022 — worse than VOO’s -18% decline. The top 10 stocks represent over 60% of the fund. That concentration means VUG’s fate is tied to a handful of companies.
If the mega-cap growth trade reverses, VUG falls harder and faster than a broad index fund. This is a complement to a core position, not a replacement for one. Read the full VUG ETF review.
QQQ — Invesco QQQ Trust
What it is: The 100 largest non-financial companies on the Nasdaq exchange. Tech, communication, and consumer discretionary stocks dominate — roughly 60% of the fund sits in the technology sector alone. QQQ has been one of the most-traded ETFs in the world since 1999.
Why it belongs in a beginner portfolio: QQQ’s track record is hard to ignore — and it’s a frequent pick on best ETFs for beginners lists for good reason. $10,000 invested 10 years ago grew to approximately $48,000. The fund manages over $390 billion in assets and trades millions of shares daily.
At 0.18%, QQQ is the most expensive fund on this list — but still costs less than 95% of actively managed funds.
Risk to know: QQQ lost -83% during the dot-com crash. It dropped -33% in 2022. The fund holds zero financial stocks, zero energy stocks, and zero utilities. That’s not diversification — that’s a concentrated bet on innovation. QQQ is appropriate as a smaller allocation alongside a broad core fund, not as a standalone portfolio. Read the full QQQ ETF review.
Best ETFs for Beginners — Which One Fits You?
Seven funds, four tiers. The right pick from this best ETFs for beginners list depends on three things: your time horizon, your comfort with volatility, and how simple you want to keep it.
| If You Are… | Common Choice | Why |
|---|---|---|
| 20s, max simplicity, long horizon | VT alone | One fund, global, no rebalancing needed |
| 20s–30s, U.S.-focused, growth-oriented | VOO or VTI | Proven U.S. core with lowest fees |
| 30s–40s, income + growth together | VOO + SCHD | Growth core plus 3.4% dividend stream |
| Any age, full global diversification | VTI + VXUS | U.S. + international, you control the ratio |
| Higher risk tolerance, 20+ year horizon | VTI + VUG or QQQ | Broad base plus growth tilt |
You’ve seen the best ETFs for beginners individually. Here’s how they fit together in real portfolios.
Percentages are common allocations — not prescriptions. Adjust based on your age, goals, and risk tolerance.
The best ETFs for beginners all accept the same $100 monthly contribution. Same discipline. Wildly different outcomes based on which fund you choose — and how long you hold.
| ETF | 10-Yr CAGR* | 10 Years | 20 Years | 30 Years |
|---|---|---|---|---|
| QQQ | 18.0% | $33,129 | $230,885 | $1,411,359 |
| VUG | 16.5% | $30,173 | $185,527 | $985,408 |
| VOO | 15.3% | $28,029 | $156,227 | $742,570 |
| VTI | 14.2% | $26,221 | $133,798 | $575,165 |
| VT | 10.5% | $21,081 | $81,050 | $251,640 |
| SCHD | 10.5% | $21,081 | $81,050 | $251,640 |
| VXUS | 6.5% | $16,840 | $49,042 | $110,618 |
| You contributed | — | $12,000 | $24,000 | $36,000 |
*10-year trailing CAGR (2016–2025, total return with dividends reinvested). Calculated using monthly compounding with $100 monthly contributions. Past performance doesn’t guarantee future results. QQQ’s 30-year figure assumes the past decade’s exceptional growth rate continues — unlikely in practice.
How to Buy Your First ETF in 4 Steps
Choosing the best ETFs for beginners is step one. Opening a brokerage account and placing your first order takes about 15 minutes — we cover every step in our complete guide to starting your first investment. Here’s the quick version:
The Fee Gap Most Beginners Miss
Every fund on this best ETFs for beginners list costs 0.18% or less. A 0.03% expense ratio sounds free. A 0.50% ratio sounds cheap. Over 30 years of compounding, the difference isn’t cheap — it’s thousands of dollars.
| Scenario | Expense Ratio | $10K After 30 Years* | Lost to Fees |
|---|---|---|---|
| VOO / VTI (0.03%) | 0.03% | $173,072 | $1,422 |
| Average index ETF (0.20%) | 0.20% | $165,223 | $9,271 |
| Typical active fund (0.50%) | 0.50% | $152,203 | $22,291 |
| High-fee fund (1.00%) | 1.00% | $132,677 | $41,817 |
*Assumes 10% annual return compounded annually, $10,000 lump sum, dividends reinvested. No additional contributions.
That last row is a $41,817 gap — on the same $10,000 investment, earning the same market return. The only difference is the expense ratio. Low fees compound in your favor just like returns do.
5 Mistakes New ETF Investors Make
Picking the best ETFs for beginners is only half the equation. Avoiding these common errors matters just as much.
- One-fund simplicity: VT covers the entire world at 0.06%
- U.S.-only core: VOO (S&P 500) or VTI (total market) at 0.03%
- Add international: Pair VTI with VXUS for global coverage you control
- Want dividends: SCHD delivers 3.4% yield with quality screening
- Growth tilt: VUG (0.03%) or QQQ (0.18%) for higher-risk, higher-potential allocation
- Rule of thumb: Keep total expense ratio under 0.10% for core holdings
- Most important step: Start. The best ETF for beginners is the one you actually buy and hold for the long term
Each fund on this best ETFs for beginners list has a dedicated review with 10-year performance data, risk metrics, and holding breakdowns. Dive into any ETF below for the full analysis.
FAQ: Best ETFs for Beginners
Common questions about choosing the best ETFs for beginners — answered with data, not opinions.
What is the single best ETF for beginners who want just one fund? +
Should beginners buy VOO or VTI? +
How much money do I need to start buying ETFs? +
Are these the best ETFs for beginners in a Roth IRA? +
How many ETFs should a beginner own? +
Do I need to check my ETF every day? +
This article is for informational purposes only and does not constitute investment advice. Always do your own research or consult a licensed financial advisor before making investment decisions.