Zachary Evens: Stocks notched another strong year in 2025, despite periods when it looked like much of 2024’s progress would be undone. US stocks quickly recovered following April’s sharp selloff, and international stocks enjoyed a nearly straight line up. Even bonds did well this year as rate cuts took hold. Almost everywhere you looked in 2025, the line was up and to the right—even if it wasn’t the straightest path there.
Lines don’t always go up and to the right, though. April’s volatility demonstrated why international diversification is important and how bonds can be an effective portfolio ballast. Long-term investors should diversify across countries and asset classes to minimize the risk that any one market or asset class spells trouble for their entire portfolio. Any of these three ETFs are a great way to diversify a portfolio and can be held long past 2026.
3 Great ETFs for 2026 and Beyond
- Vanguard Total World Stock Index ETF VT
- State Street SPDR Portfolio S&P 500 ETF SPYM
- Dimensional Core Fixed Income ETF DFCF
First up is Vanguard Total World Stock ETF, which trades under the ticker VT. We’ve highlighted this ETF before, but for good reason. It holds almost 10,000 stocks across more than two dozen countries, charging investors just 6 basis points annually to do so. This low fee and unmatched global breadth earn it a Morningstar Medalist Rating of Gold.
The ETF is a snapshot of the global stock market. It tracks a vast index that includes stocks of all sizes from emerging and developed markets. The index is market-cap-weighted, meaning it invests the most in the world’s biggest stocks and the least in the world’s smallest stocks. This is an efficient approach because it captures the market’s collective opinion of each stock’s value and keeps turnover low.
Tilting toward large companies gives U.S. stocks more attention. This has helped performance because huge US tech stocks like Nvidia NVDA have enjoyed excellent returns in recent years. But when they falter, stocks from other markets are poised to pick up the slack.
The next ETF I’ll mention recently got a new name, a new ticker, but it follows the same great index. State Street SPDR Portfolio S&P 500 ETF, ticker SPYM, is an extremely cheap way to gain exposure to the US stock market. Its low fee of just 2 basis points and diversification across large- and mid-cap US stocks earn it a Morningstar Medalist Rating of Gold.
The S&P 500 is perhaps the best-known index around. Even if someone can’t define what an index is, chances are they know what the S&P 500 is. And that’s a good thing. It’s a great index.
Like VT, this ETF is market-cap-weighted, but limits a portfolio to the largest 500 stocks in the United States. The committee behind the index also requires new entrants to be profitable, which gives the portfolio a slight quality tilt. Many of the companies featured near the top of this portfolio are great businesses with durable competitive advantages. Its efficient construction and low fee make this one of the best ways for long-term investors to access the US stock market.
Last but not least is Dimensional Core Fixed Income ETF, ticker DFCF. This ETF is a relative newcomer, having launched in 2021, but it will surely be around for years to come. The ETF is Dimensional’s take on fixed-income investing, and it aims to outperform the market by systematically positioning its duration and credit risk profile. And like other Dimensional products, it’s cheap, charging investors just 17 basis points annually.
Bond prices do most of the heavy lifting here. The managers use current prices to calculate unexpected return for each eligible bond, then pursue those with the best return potential within a set of constraints, shaping the fund’s duration and geographical positioning.
The strategy generally tilts toward shorter-term bonds when the yield curve is flat or inverted, toward lower-rated bonds when credit spreads widen, and higher-rated bonds when spreads are tight, all the while staying within its global investment-grade mandate. These measured liens should give the fund a leg up on passive competitors.
It’s almost a cliche to say that diversification is the only free lunch in investing. But it’s true. Diversification allows investors to sleep soundly at night, knowing that one stock, one bond, or one market won’t derail their retirement plans. Long-term investors would do well holding any of these great ETFs well past 2026.
Watch 3 Great New ETFs From 2025 for more from Zachary Evens.