What is the best ETF to buy right now?

There are lots of good ETFs to buy in any market environment. In September 2026, the Vanguard Morningstar Growth ETF looked relatively more attractive than other top ETFs. Its price had underperformed the market over the past year (up about 14.5% by early September, compared with nearly 18.5% for the Vanguard 500 ETF and over 24% for the Invesco QQQ Trust). The growth-focused ETF should deliver higher total returns over the long term as its holdings continue to grow their revenues at above-average rates.

What is the most successful ETF?

The most successful ETF over the last 10 years is the VanEck Semiconductor ETF (NASDAQ:SMH). The fund focuses on semiconductor stocks and has delivered an average annualized total return of 37.1% over the past decade. Of note, the top four best-performing ETFs over the last decade focused on semiconductors, while all 10 of the best performers focused on tech stocks.

Are ETFs still a good investment?

ETFs can be very good investments. Many ETFs enable you to invest passively in a broader stock market index at a low cost, allowing you to earn market returns. Other ETFs are great options for those seeking passive income from dividend stocks or bonds. ETFs can also help investors earn market-beating returns by investing in sectors or groups of stocks growing at above-average rates (such as semiconductor or technology stocks).

What ETF pays the highest dividend?

According to data from ETFdb.com, dozens of ETFs offer dividend yields in the double digits as of early September 2026. However, many of the ETFs with the highest dividends are very small leveraged ETFs, making them exceptionally risky. Even so, several ETFs stand out for their double-digit yields, which they deliver by writing options. For example, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) uses a covered call strategy to generate options income on the Nasdaq-100. Meanwhile, the NEOS S&P 500 High Income ETF (CBOE: SPYI) employs a similar strategy on the S&P 500.

What’s the difference between ETFs and mutual funds?

The main difference between ETFs and mutual funds is that ETFs trade like stocks. You can buy and sell them through your regular brokerage account with no minimum investment. Many mutual funds require that you purchase them directly from the sponsor or through a financial advisor. Many mutual funds also have an investment minimum that can exceed $1,000.

What is a good ETF for beginners?

A good ETF for beginners is an index fund tracking the S&P 500, such as the Vanguard 500 ETF. It invests in 500 of the largest publicly traded companies in the U.S. and has a low expense ratio. Overall, it provides investors instant exposure to a diversified portfolio of top U.S. stocks at a very reasonable cost.

What is the best ETF to hold forever?

The best ETF to hold forever is an S&P 500 Index fund, such as the Vanguard 500 ETF. It provides broad exposure to the stock market at a very reasonable cost.

How much do I need to invest in ETFs to get $1,000 a month?

How much you need to invest in ETFs to get $1,000 a month in dividend income depends on the yield. For example, an S&P 500 index fund such as the Vanguard 500 ETF had a 1% yield in September 2026. At that rate, you'd need to invest $1.2 million to generate $12,000 of dividend income each year to hit a $1,000 a month target (the fund pays dividends quarterly). However, you'd need to invest less in a higher-yielding ETF such as the Schwab U.S. Dividend Equity ETF. With a 3.13% yield as of early September 2026, you'd only need to invest about $383,600 into the Schwab U.S. Dividend Equity ETF to generate $12,000 of annual dividend income.

7 Best ETFs to Buy in September 2026

Exchange-traded funds tend to be less volatile than individual stocks and provide exposure to a broad range of opportunities.

By Matthew DiLallo – Updated Sep 1, 2026 at 10:35 AM EST | Fact-checked by Frank Bass

Key Points

ETFs can provide diversified market exposure via a single investment, e.g., S&P 500 Index funds.
The Vanguard S&P 500 ETF is very low-cost: a $10k investment incurs only $3 in fees annually.
Invest in ETFs like VTI for broad U.S. market exposure or IXUS for international stocks.

Exchange-traded funds (ETFs) are investment vehicles that trade like a stock but give investors ownership of a broad range of stocks or other assets. ETFs offer investors an appealing alternative to owning individual stocks. They can also be great complements to an investor's stock portfolio.

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There are all kinds of ETFs available. Some track major indexes, such as the S&P 500 or the Nasdaq Composite. Others give investors exposure to specific regions, such as China or emerging markets. And some ETFs focus on specific sectors, such as technology or banking, or on specific types of stocks, such as dividend or growth stocks. Additionally, some ETFs focus on investment themes, such as robotics, space, or quantum computing.

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An infographic outlining three reasons to consider investing in ETFs. — Image source: The Motley Fool.

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In a challenging market environment, ETFs can help reduce the risks of owning an individual stock, as they tend to be less volatile. Although they're similar in principle to mutual funds, they're easier to buy and sell than typical mutual funds and tend to have lower fees. If you're looking for ETFs to invest in, keep reading to see seven of the best.

Top seven ETFs to buy now

There are hundreds of ETFs to choose from. Here are seven of the best ETFs to buy this month.

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Data source: ETF.com. Data as of September 1, 2026.

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1. Vanguard S&P 500 ETF

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NYSEMKT: VOO

Vanguard S&P 500 ETF

Today's Change

(0.42%) $2.95

Current Price

$703.23

Key Data Points

AUM

$1.7T

Dividend Yield

1.04%

Expense Ratio

0.03%

Top Holdings

NVDA

7.55%

AAPL

7.05%

MSFT

5.36%

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NASDAQ: QQQ

Invesco QQQ Trust

Today's Change

(0.14%) $0.98

Current Price

$708.62

Key Data Points

AUM

$489B

Dividend Yield

0.43%

Expense Ratio

0.18%

Top Holdings

NVDA

8.49%

AAPL

7.71%

MSFT

6.01%

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If you're looking to gain exposure to big tech stocks, Invesco QQQ Trust (QQQ +0.11%) is an excellent choice. The ETF tracks the Nasdaq-100 index, which includes 100 of the Nasdaq's largest nonfinancial companies.

The top stocks in the ETF are Nvidia (NVDA +3.32%), Apple (AAPL +0.31%), Microsoft (MSFT -0.78%), Broadcom (AVGO -0.72%), and Amazon (AMZN +0.02%). This large, top-performing ETF also boasts an affordable expense ratio of 0.18%.

As of September 2026, the Invesco QQQ Trust had generated a total return of more than 540% over the past decade. To put that into perspective, a $10,000 investment made in this ETF 10 years ago would be worth over $64,000 today.

The Nasdaq-100's focus on innovative technology companies positions it to continue delivering strong total returns, especially as artificial intelligence (AI) accelerates growth in the tech sector in the coming years.

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3. Vanguard Morningstar Growth ETF

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NYSEMKT: VUG

Vanguard Morningstar Growth ETF

Today's Change

(0.30%) $0.27

Current Price

$87.64

Key Data Points

AUM

$372B

Dividend Yield

1.80%

Expense Ratio

0.03%

Top Holdings

NVDA

12.81%

AAPL

12.60%

MSFT

9.59%

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If you want to invest in growth stocks but don't want to be an active stock picker, the Vanguard Morningstar Growth ETF (VUG +0.28%) makes that easy. The ETF holds large-cap growth stocks and tracks the Morningstar U.S. Large Cap Growth Index.

Like Invesco QQQ Trust and Vanguard S&P 500, the Vanguard Morningstar Growth ETF's biggest holdings are Nvidia, Apple, and Microsoft. Those are just some of the 147 growth stocks the ETF held as of September 2026. The Vanguard Morningstar Growth ETF offers a rock-bottom expense ratio of just 0.03%. Its low cost makes it a good deal for anyone looking for a growth stock ETF.

4. iShares Core S&P Small-Cap ETF

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NYSEMKT: IJR

iShares Core S&P Small-Cap ETF

Today's Change

(1.13%) $1.62

Current Price

$144.54

Key Data Points

AUM

$109B

Dividend Yield

1.14%

Expense Ratio

0.06%

Top Holdings

CORT

0.60%

VSAT

0.60%

GKOS

0.59%

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The iShares Core S&P Small-Cap ETF (IJR +1.16%) provides broad exposure to small-cap stocks. Small caps tend to be more volatile than the broader market because they may be less profitable or financially weaker than their large-cap counterparts. As a result, small caps tend to be riskier during a downturn because they may not have the same access to capital.

This ETF helps mute some of that risk by holding a large basket of small-cap stocks. As of September 2026, it held 669 stocks and had a fairly low concentration of holdings. Its top 10 holdings comprised a little more than 5% of the total. The ETF has a very low expense ratio of 0.06%, making it a low-cost way to add some small-cap exposure to your portfolio.

5. Schwab U.S. Dividend Equity ETF

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NYSEMKT: SCHD

Schwab U.S. Dividend Equity ETF

Today's Change

(0.73%) $0.26

Current Price

$35.07

Key Data Points

AUM

$112B

Dividend Yield

2.99%

Expense Ratio

0.06%

Top Holdings

MRK

4.86%

AMGN

4.82%

ABT

4.65%

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Dividend stocks are great long-term investments. Over the last 50 years, dividend-paying companies outperformed nondividend payers by more than 2-to-1 (9.2% average annual total return versus 4.2% for nondividend payers, according to data from Ned Davis Research and Hartford Funds). The best performance came from dividend growers and initiators (10.2% versus 6.9% for companies with no change in their dividend policy).

The Schwab U.S. Dividend Equity ETF (SCHD +0.68%) provides exposure to high-yielding U.S. stocks with a history of dividend growth. It tracks the Dow Jones U.S. Dividend 100, which measures the performance of 100 top dividend stocks based on several quality characteristics, including dividend yield and five-year dividend growth rate. Among its 10 largest holdings in September 2026 were notable dividend payers Coca-Cola (KO +0.99%) and Verizon (VZ +0.41%).

The ETF offers a relatively attractive dividend yield. As of September 2026, it had a trailing-12-month yield of 3.1%, triple the 1% dividend yield of an S&P 500 index fund. And thanks to its low expense ratio of 0.06%, investors keep more of the ETF's dividend income. The fund should also deliver price appreciation as the underlying companies grow their earnings and dividends.

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6. Vanguard Morningstar Total Stock Market ETF

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NYSEMKT: VTI

Vanguard Morningstar Total Stock Market ETF

Today's Change

(0.41%) $1.54

Current Price

$376.71

Key Data Points

AUM

$2.3T

Dividend Yield

1.04%

Expense Ratio

0.03%

Top Holdings

NVDA

6.40%

AAPL

6.29%

MSFT

4.79%

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Although the S&P 500 is considered a broad-market index, it gives you exposure to only 500 large-cap U.S. stocks. If you want to own all the stocks in the U.S. market, the best way to do it is through a total stock market fund such as the Vanguard Morningstar Total Stock Market ETF (VTI +0.44%).

As of September 2026, the fund held 3,515 companies, including large-, mid-, and small-cap stocks. Because its holdings encompass the S&P 500, its largest positions are the same as for the broad market index.

Vanguard Morningstar Total Stock Market ETF aims to track the Morningstar U.S. Total Stock Market index. Like other Vanguard funds, it has a low 0.03% expense ratio, making it an affordable way to invest in the entire U.S. stock market through a single ETF. It also provides a small amount of income at a 1% yield as of September 2026.

7. iShares Core MSCI Total International Stock ETF

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NASDAQ: IXUS

iShares Trust - iShares Core Msci Total International Stock ETF

Today's Change

(0.45%) $0.43

Current Price

$97.14

Key Data Points

AUM

$61B

Dividend Yield

2.89%

Expense Ratio

0.07%

Top Holdings

2330.TW

4.28%

005930.KS

1.99%

ASML.AS

1.53%

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If it's international markets you want, the iShares Core MSCI Total International Stock ETF (IXUS +0.45%) is a good way to go. The fund derives its holdings from an MSCI global index and subtracts the U.S. listings. It held 4,590 stocks in September 2026, including large-, mid-, and small-cap companies worldwide.

The ETF offers diversified international exposure. Its top five geographies were:

Japan: 15.2% of the fund's holdings
Taiwan: 8.8%
United Kingdom: 8.4%
Canada: 8.3%
South Korea: 6.4%

The iShares Core MSCI Total International Stock ETF allows you to invest globally at an affordable expense ratio of 0.07%. It also has an attractive dividend yield of 2.9% based on the last 12 months of dividend payments (as of September 2026).

Tax considerations for ETFs

ETFs tend to be more tax-efficient compared to mutual funds. However, investors still need to consider taxes when holding an ETF in a regular brokerage account.

Investors will pay two types of taxes on ETFs that hold stocks or bonds:

Taxes on income: ETFs that hold dividend-paying stocks must distribute the income from those dividends to investors at least once each year. The IRS taxes Qualified dividends at the lower federal long-term capital gains rates of 0%, 15%, or 20%, while taxing non-qualified dividends and interest income from bonds as ordinary income, up to 37%.
Taxes on capital gains: If you sell an equity or bond ETF, you'll pay taxes on the gain depending on how long you held the fund and your annual income. ETFs held for more than a year get taxed at the lower federal long-term capital gains rates of 0%, 15%, or 20%. Meanwhile, the IRS taxes funds held less than a year at the short-term capital gains rate, which is the same as your ordinary tax rate (up to 37%).

Types of ETFs

There are several types of ETFs that investors can buy, including:

Broad index funds: Many of the largest ETFs track a broad market index, such as the S&P 500 or the Nasdaq-100. These funds enable investors to gain diversified market exposure through a single low-cost fund.
Sector ETFs: These ETFs focus on stocks in a specific stock market sector, such as technology, energy, or healthcare.
Asset-focused funds: These funds invest in a specific asset class, such as government bonds, dividend stocks, small-cap stocks, or commodities.
Thematic ETFs: Thematic funds invest in themes such as semiconductor stocks, artificial intelligence (AI), international stocks, or clean energy.

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How to choose an ETF

You should evaluate the following factors when choosing an ETF:

Whether the investment strategy (i.e., growth, income, or specific theme) fits your needs
How the ETF's expense ratio compares to similar funds
Its past performance compared to similar funds and its benchmark
Its size and trading volume versus other similar funds.
Whether it uses any leverage

Should you invest in ETFs?

Exchange-traded funds can work for almost any kind of investor, regardless of your investing style or the type of stocks you're looking to invest in. Hundreds of ETFs offer exposure to a wide range of sectors and investment goals, including dividend and growth strategies. These funds have several benefits, including:

Potentially lower risk and less volatility compared to investing in individual stocks.
A passive investment with a low management fee.
Built-in diversification from day one.
Targeted investment in a trend or theme through a simple investment vehicle.
Liquidity (ETFs trade like stocks).
Very transparent investments.
A possible source of passive income, depending on the ETF's investment strategy.

However, there are also some drawbacks to investing in ETFs that investors need to consider, including:

They have the potential to underperform a portfolio of individual stocks.
The higher management fees of some funds can eat into their returns.
Leverage and other factors can cause some funds to deliver poor long-term performance.

For most investors, holding at least one or two high-quality ETFs makes sense, especially if you want to eliminate some of the work of picking individual stocks. The list above offers a good starting point if you're looking for the best ETFs to buy.

Tips for Investing in ETFs

Here are some practical tips and strategies for investing in ETFs:

Invest in a low-cost index fund to gain broad exposure to the stock market.

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Buying the best ETFs: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Amazon, Apple, Broadcom, Chevron, Schwab U.S. Dividend Equity ETF, and Verizon Communications and has the following options: short May 2026 $280 calls on Apple. The Motley Fool has positions in and recommends Amazon, Apple, Chevron, Microsoft, Nvidia, Vanguard Growth ETF, Vanguard S&P 500 ETF, Vanguard Total Stock Market ETF, and iShares Core S&P Small-Cap ETF. The Motley Fool recommends Broadcom and Verizon Communications. The Motley Fool has a disclosure policy.

7 Best ETFs to Buy in September 2026

Exchange-traded funds tend to be less volatile than individual stocks and provide exposure to a broad range of opportunities.

Key Points

Top seven ETFs to buy now

1. Vanguard S&P 500 ETF

Key Data Points

Key Data Points

3. Vanguard Morningstar Growth ETF

Key Data Points

4. iShares Core S&P Small-Cap ETF

Key Data Points

5. Schwab U.S. Dividend Equity ETF

Key Data Points

6. Vanguard Morningstar Total Stock Market ETF

Key Data Points

7. iShares Core MSCI Total International Stock ETF

Key Data Points

Tax considerations for ETFs

Types of ETFs

How to choose an ETF

Should you invest in ETFs?

Tips for Investing in ETFs

Related investing topics

Best ETFs for Beginners and How to Invest

The Best (and Only) Dow Jones ETF to Consider in 2026

Best Russell 2000 ETFs to Buy in 2026

6 Best Vanguard ETFs for 2026 and How to Invest

Buying the best ETFs: FAQ

What is the best ETF to buy right now?

What is the best ETF to buy right now?

What is the most successful ETF?

What is the most successful ETF?

Are ETFs still a good investment?

Are ETFs still a good investment?

What ETF pays the highest dividend?

What ETF pays the highest dividend?

What’s the difference between ETFs and mutual funds?

What’s the difference between ETFs and mutual funds?

What is a good ETF for beginners?

What is a good ETF for beginners?

What is the best ETF to hold forever?

What is the best ETF to hold forever?

About the Author

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Top seven ETFs to buy now

1. Vanguard S&P 500 ETF

3. Vanguard Morningstar Growth ETF

6. Vanguard Morningstar Total Stock Market ETF

Related investing topics

Key Data Points

Buying the best ETFs: FAQ

What is the best ETF to buy right now?

What is the best ETF to buy right now?

What is the most successful ETF?

What is the most successful ETF?

Are ETFs still a good investment?

Are ETFs still a good investment?

What ETF pays the highest dividend?

What ETF pays the highest dividend?

What’s the difference between ETFs and mutual funds?

What’s the difference between ETFs and mutual funds?

What is a good ETF for beginners?

What is a good ETF for beginners?

What is the best ETF to hold forever?

What is the best ETF to hold forever?

How to choose an ETF

Should you invest in ETFs?

Tips for Investing in ETFs

How much do I need to invest in ETFs to get $1,000 a month?

2. Invesco QQQ Trust

4. iShares Core S&P Small-Cap ETF

5. Schwab U.S. Dividend Equity ETF

7. iShares Core MSCI Total International Stock ETF