Best ETFs for Beginners (2026)
Which funds are sensible first holdings for a new investor — 33 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- scores 86.2 on the overall model (grade A)
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 33 funds, not across the whole market.
All 33 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 VYMIVanguard International High Dividend Yield Index Fund ETF Shares | Dividend Income | 0.07% | 3.43% | +31.0% | +90.8% | 13.1% | -12.8% | 1.99 | $22.7B | 86.2 | A |
| 2 SCHFSchwab International Equity ETF | International Developed | 0.03% | 2.98% | +29.1% | +78.9% | 17.4% | -13.4% | 1.38 | $69.7B | 83.8 | B+ |
| 3 SCHDSchwab U.S. Dividend Equity ETF | Dividend Income | 0.06% | 3.00% | +29.1% | +56.8% | 11.1% | -16.1% | 2.17 | $112.3B | 83.8 | B+ |
| 4 VEAVanguard FTSE Developed Markets Index Fund ETF Shares | International Developed | 0.03% | 2.49% | +28.2% | +78.4% | 17.3% | -13.4% | 1.34 | $323.8B | 83.4 | B+ |
| 5 SPDWState Street SPDR Portfolio Developed World ex-US ETF | International Developed | 0.03% | 2.92% | +28.2% | +78.8% | 17.1% | -13.5% | 1.36 | $42.3B | 82.3 | B+ |
| 6 HDViShares Core High Dividend ETF | Dividend Income | 0.08% | 3.34% | +24.3% | +57.4% | 11.0% | -10.5% | 1.76 | $15.5B | 81.3 | B+ |
| 7 VXUSVanguard Total International Stock Index Fund ETF Shares | Global Multi-Region | 0.05% | 2.51% | +26.3% | +75.0% | 16.9% | -13.6% | 1.26 | $665.7B | 81.1 | B+ |
| 8 VYMVanguard High Dividend Yield Index Fund ETF Shares | Dividend Income | 0.04% | 2.22% | +20.1% | +65.5% | 10.1% | -14.5% | 1.49 | $100.8B | 80.4 | B+ |
| 9 IXUSiShares Core MSCI Total International Stock ETF | Global Multi-Region | 0.07% | 2.88% | +26.3% | +75.6% | 17.1% | -13.8% | 1.24 | $60.6B | 79.6 | B+ |
| 10 DGROiShares Core Dividend Growth ETF | Dividend Income | 0.08% | 1.87% | +19.5% | +62.7% | 9.5% | -14.0% | 1.53 | $43.5B | 78.3 | B+ |
| 11 VTVanguard Total World Stock Index Fund ETF Shares | Global Multi-Region | 0.06% | 1.55% | +21.9% | +76.1% | 13.9% | -16.5% | 1.21 | $101.7B | 77.8 | B+ |
| 12 IDEViShares Core MSCI International Developed Markets ETF | International Developed | 0.04% | 3.11% | +22.1% | +71.0% | 15.2% | -13.4% | 1.13 | $32.7B | 76.7 | B+ |
| 13 VOOVanguard S&P 500 ETF | US Large Cap Blend | 0.03% | 0.77% | +19.7% | +78.5% | 12.7% | -18.7% | 1.16 | $1.76T | 76.1 | B+ |
| 14 IEFAiShares Core MSCI EAFE ETF | International Developed | 0.07% | 3.29% | +21.3% | +68.3% | 15.6% | -13.8% | 1.04 | $194.4B | 75.7 | B |
| 15 IVViShares Core S&P 500 ETF | US Large Cap Blend | 0.03% | 0.73% | +19.7% | +78.4% | 12.8% | -18.8% | 1.14 | $884.0B | 75.4 | B+ |
| 16 SPYState Street SPDR S&P 500 ETF Trust | US Large Cap Blend | 0.09% | 0.74% | +19.6% | +78.1% | 12.8% | -18.8% | 1.14 | $811.9B | 74.6 | B |
| 17 VVVanguard Morningstar Large-Cap ETF | US Large Cap Blend | 0.03% | 0.74% | +19.5% | +79.2% | 12.9% | -19.0% | 1.12 | $76.2B | 74.3 | B |
| 18 VTIVanguard Morningstar Total Stock Market ETF | US Large Cap Blend | 0.03% | 0.74% | +19.6% | +77.1% | 13.0% | -19.3% | 1.12 | $2.34T | 73.9 | B+ |
| 19 ITOTiShares Core S&P Total U.S. Stock Market ETF | US Large Cap Blend | 0.03% | 0.74% | +19.5% | +77.1% | 13.1% | -19.4% | 1.11 | $97.1B | 73.3 | B |
| 20 SCHXSchwab U.S. Large-Cap ETF | US Large Cap Blend | 0.03% | 1.00% | +19.0% | +78.0% | 12.9% | -19.0% | 1.09 | $74.2B | 73.0 | B |
| 21 SCHBSchwab U.S. Broad Market ETF | US Large Cap Blend | 0.03% | 1.02% | +19.4% | +77.2% | 13.0% | -19.3% | 1.11 | $44.6B | 72.1 | B |
| 22 VIGVanguard Dividend Appreciation Index Fund ETF Shares | Dividend Income | 0.04% | 1.48% | +15.1% | +56.9% | 10.1% | -14.9% | 1.01 | $132.4B | 72.1 | B |
| 23 VGKVanguard FTSE Europe ETF | International Developed | 0.06% | 1.94% | +19.6% | +68.3% | 15.7% | -14.3% | 0.93 | $39.1B | 71.4 | B |
| 24 DFUSDimensional U.S. Equity Market ETF | US Large Cap Blend | 0.09% | 0.84% | +19.7% | +78.2% | 13.2% | -19.4% | 1.12 | $21.5B | 70.9 | B |
| 25 SPYGState Street SPDR Portfolio S&P 500 Growth ETF | US Large Cap Growth | 0.04% | 0.38% | +21.2% | +100.2% | 18.2% | -22.1% | 0.89 | $54.5B | 69.5 | B |
| 26 IUSGiShares Core S&P U.S. Growth ETF | US Large Cap Growth | 0.04% | 0.46% | +21.1% | +97.4% | 17.8% | -22.3% | 0.90 | $33.3B | 68.6 | B |
| 27 VUGVanguard Morningstar Growth ETF | US Large Cap Growth | 0.03% | 1.74% | +14.8% | +87.4% | 17.7% | -22.9% | 0.55 | $384.5B | 64.4 | C |
| 28 SCHGSchwab U.S. Large-Cap Growth ETF | US Large Cap Growth | 0.04% | 0.37% | +14.9% | +87.6% | 16.6% | -23.4% | 0.60 | $63.0B | 64.0 | C |
| 29 MGKVanguard Morningstar Mega Cap Growth ETF | US Large Cap Growth | 0.05% | 0.33% | +16.6% | +90.4% | 18.2% | -23.4% | 0.64 | $33.7B | 63.1 | C |
| 30 VONGVanguard Russell 1000 Growth Index Fund ETF Shares | US Large Cap Growth | 0.06% | 0.46% | +10.1% | +79.4% | 17.6% | -23.3% | 0.29 | $54.3B | 59.7 | C |
| 31 BNDVanguard Total Bond Market Index Fund ETF Shares | US Bonds - Broad | 0.03% | 4.04% | +0.7% | +13.3% | 3.6% | -4.7% | -1.18 | $398.8B | 57.9 | C |
| 32 AGGiShares Core U.S. Aggregate Bond ETF | US Bonds - Broad | 0.03% | 2.56% | +0.7% | +13.3% | 3.7% | -4.8% | -1.15 | $138.3B | 57.9 | C |
| 33 IUSBiShares Core Universal USD Bond ETF | US Bonds - Broad | 0.06% | 4.29% | +1.1% | +14.9% | 3.5% | -4.4% | -1.11 | $43.8B | 57.4 | C |
Note: this table spans multiple asset classes, so the score column compares funds doing different jobs. Compare within a category before comparing across the table. Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
This list is filtered rather than ranked from the whole universe: only large, cheap, broadly diversified funds in core categories qualify. Nothing here is a sector bet, a leveraged product or a niche strategy — a first portfolio rarely needs more than one or two of these.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best ETF for a beginner?
VYMI ranks highest of the 33 funds passing this screen, with a score of 86.2 (A). A broad US or global equity fund is the most common first holding, often paired later with a bond fund as the horizon shortens.
How many ETFs should a beginner own?
One is genuinely enough to start — a total-market or global fund is diversified across thousands of companies by itself. Two or three covering US equity, international equity and bonds is a complete portfolio for most people.
How much money do I need to start?
Most brokers now allow fractional shares, so the practical minimum is very small. What matters more than the starting amount is contributing regularly.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.