Host David Asman reports on a strong market day, with the Dow Jones Industrials reaching 52,000 for the first time. SpaceX stock rose as much as 16%, overtaking Amazon by market capitalization.
There is a misconception that people need thousands and thousands of dollars before they start investing. But in today’s world, broker accounts can be opened with no initial deposit required, and you can start by buying just one share. That means in most cases your investment journey can start for less than the cost of DoorDash delivery!
Whether you’re looking to start or add to an existing portfolio, high-cost index ETFs are often the best choice. Many of these give you broad market coverage and make for a great long-term portfolio to hold.
Here are five of my favorites that include low fees, diversification, smart index construction, and strong long-term track records.
COULD THE VANGUARD S&P 500 ETF BE YOUR TICKET TO BECOMING A STOCKSET MILLIONAIRE?
A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, June 1, 2026. (Brendan McDermid/Reuters)
1. Vanguard Total Stock Market ETF
The Vanguard Total Stock Market ETF is perhaps the best ETF to buy. It tracks an index that includes almost the entire US equity market. That means about 3,500 stocks in total across all sizes and industries.
Many investors like to use the Vanguard S&P 500 ETF as the foundation of their portfolios. I prefer the Vanguard Total Stock Market ETF because I want to cover the entire US stock market. Mid-cap and small-cap stocks have different types of sectors and economic impacts, as well as high growth potential. That works well from a diversity perspective.
2. Schwab US Dividend Equity ETF
The Schwab US Dividend Equity ETF is my pick for the best dividend ETF because of its strong selection strategy that targets stocks with the best combination of balance sheet quality, long-term dividend growth, and profitability.
1 UNDER THE RADAR ETF INVEST $1,000 NOW THAT MAKES BIG SECONDS THIS YEAR.
A futures options trader works on the floor of the NYSE American (AMEX) New York Stock Exchange in New York City, June 8, 2026. (Brendan McDermid/Reuters/Reuters)
This fund holds shares of many long-lived companies that have been built to withstand and thrive in many economic environments. Also, its current yield of 3.3% is three times that of the S&P 500 right now and will appeal to people looking to get cash in their portfolios.
3. Invesco Nasdaq-100 ETF
The Invesco Nasdaq-100 ETF is one of the most widely used proxies for the US technology sector. While it’s actually only about two-thirds of tech stocks, it includes all the big tech and artificial intelligence (AI) names that are currently trending.
Technology and growth stocks are clearly playing a big role in what is driving the US stock market recovery. But this part of the market is often where innovation comes from, as we’re seeing with the AI boom right now. This always deserves a place in long-term portfolios. Also, the Invesco Nasdaq-100 ETF has a lower expense ratio than its counterpart fund, the Invesco QQQ ETF.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| VTI | VANGUARD TOTAL STOCK MARKET ETF – USD DIS | 371.03 | +0.64 |
+0.17% |
| SCHD | SCHWAB STRATEGIC TR US DIVIDEND EQUITY ETF | 32.42 | -0.11 |
-0.34% |
| QQQM | INVESCO EXCHANGE TRADED FD TR II NASDAQ 100 ETF USD | 301.94 | +1.38 |
+0.46% |
4. Vanguard Mid-Cap ETF
The Vanguard Mid-Cap ETF invests in the undervalued space that lies between large-cap and small-cap. Historically, this market segment has delivered competitive risk-adjusted returns and should not be overlooked by investors.
ETF PROPERTIES CONTINUE. HERE’S HOW CONNECTION FEES DIFFER
While mid-cap stocks have underperformed their large-cap counterparts during the AI boom, they’ve actually beaten the Vanguard S&P 500 ETF by more than 1% year to date. Since the benefits extend beyond the names of the “Magnificent Seven”, mid-caps occupy the sweet spot of higher growth potential and lower volatility than small, speculative companies.
5. Vanguard Small-Cap ETF
The Vanguard Small-Cap ETF covers the higher risk, potentially more dynamic area of the US stock market. These companies may not be highly developed or proven, but they are often quick investors who can turn to working from home under the right circumstances.
This market segment tends to have a large percentage of unprofitable companies. That is understandable since many of them are still growing, but there is also a risk that some of these companies will not succeed. Because this fund holds more than 1,300 stocks, the impact of any one company (or even a few) failing is insignificant. A diversified portfolio of these stocks makes a lot of sense.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| VO | VANGUARD INDEX FUNDS MID-CAP VIPERS | 81.06 | +0.41 |
+0.51% |
| VB | VANGUARD INDEX FUNDS VANGUARD SMALL-CAP ETF | 299.14 | +2.64 |
+0.89% |
All of these ETFs have the features you want in a buy-and-hold fund. They cover different areas of the market, which means they pair well when needed. They are cheap and different. For anyone with a little money to work with, these five are a must-own.
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David Dierking has positions in the Invesco NASDAQ 100 ETF, the Schwab US Dividend Equity ETF, and the Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends DoorDash, the Vanguard Mid-Cap ETF, and the Vanguard S&P 500 ETF. The Motley Fool has disclosure policy.
