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.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.

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.

More on ASX Share Market News

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Woman with her kitten on a laptop in her home office.
ASX Share Market News

ASX 200 utilities shares gained 7% while the broader market fell heavily last week

Utilities outperformed, rising 7%, while the benchmark index fell heavily last week.

Read more »

Man and woman sitting at table with the man looking a bit puzzled at his laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a tough end to a rough week for investors.

Read more »

Group of people toasting with wine
Broker Notes

Buy, hold, sell: Transurban, Orora, Treasury Wine Estates shares

Here's what top broker Morgans thinks of these 3 ASX 200 shares following their FY26 reports.

Read more »

Businessman studying a high technology holographic stock market chart.
Broker Notes

8 ASX 200 shares with fresh buy ratings this week

Brokers retained a positive view on Westpac, Sonic Healthcare, Minerals 260, and other shares.

Read more »

a group of rockclimbers attached to each other with a rope hang precariously from a steep cliff face with the bottom two climbers not touch the rockface but dangling in midair held only by the rope.
ASX Share Market News

Why DroneShield, Life360 and SGH shares are crashing lower this week

Investors sent Life360, SGH, and DroneShield shares tumbling this week. But why?

Read more »

Woman working on her laptop at a café.
Broker Notes

7 ASX 200 shares downgraded by the experts this week

Brokers reduced their ratings on IAG, Seek, Woolworths, and other ASX 200 stocks.

Read more »

Three trophies in declining sizes with a red curtain backdrop.
ASX Share Market News

3 ASX 200 stocks leaping higher in this week's slumping market on big news

Investors sent these three ASX 200 stocks flying higher in this week’s falling market. But why?

Read more »