Why these Vanguard ETFs could be best buys in 2026

From global markets to emerging Asia, these Vanguard ETFs provide diversified exposure for investors in 2026.

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Some years call for bold stock picking. Others are better suited to a simpler approach.

With markets still adjusting to shifting interest rates, global uncertainty, and changing growth expectations, I think 2026 could be a year where diversification does a lot of the heavy lifting.

That's why I keep coming back to Vanguard exchange-traded funds (ETFs).

Here are three I believe could be among the best buys right now.

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Image source: Getty Images

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If I could only choose one ETF for long-term growth, this would be right up there.

The Vanguard MSCI Index International Shares ETF gives investors exposure to a wide range of global companies, including many of the world's largest and most influential businesses across the US, Europe, and other developed markets.

What I like about it is its simplicity. Instead of trying to pick which global stocks will outperform, you're effectively backing the broader strength of international markets.

The VGS ETF also provides diversification away from the Australian share market, which is heavily weighted toward banks and miners. That balance can be especially valuable over time.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF adds something different to a portfolio.

It focuses on Asian markets outside of Japan, including countries like China, India, South Korea, and Taiwan. These regions are home to some of the fastest-growing economies in the world.

That growth can come with volatility, but it also creates long-term opportunities.

For me, this ETF is about adding exposure to regions that could play a bigger role in global growth over the coming decades. It complements a fund like the VGS ETF rather than replacing it.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF takes a more all-in-one approach.

It gives investors exposure to a mix of Australian and international shares, along with smaller allocations to fixed income assets, all within a single ETF.

What stands out is how easy it makes diversification. Instead of building a portfolio across multiple funds, you can access a broad range of markets in one investment.

It's also designed with long-term growth in mind, making it well suited to investors who are comfortable with market ups and downs in pursuit of higher returns over time.

Foolish takeaway

Vanguard ETFs aren't about trying to beat the market. They're about owning it.

The VGS ETF offers global exposure, the VAE ETF adds growth from Asia, and the VDHG ETF ties everything together in a diversified package.

For 2026, I think that combination of simplicity, diversification, and long-term focus could make these ETFs some of the most compelling options on the ASX.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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