If you are one of those who don’t want to be bothered about crunching numbers and analyzing individual stocks, you have probably found the idea of exchange-traded funds (ETFs) interesting. 

With the same amount you would use to buy a single asset, you can purchase a basket of securities. Instead of seeking the hay in the haystack, you can purchase the entire haystack. Apart from the convenience, passive investing with ETFs turns out to be a cost-effective and low-risk approach. 

However, with more than 12,000 ETFs listed globally, you are probably asking:  what are the best ETFs to invest in 2026?

In what follows, we will provide you with a list of the 25 best ETFs to invest in now. Since every investor has different priorities when constructing a portfolio, this list will include the best ETFs across various categories. 

Excited? Let’s get started. 

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(Disclaimer: The mention of an investment product does not constitute a buy recommendation. Do your own research based on your investment goals and current portfolio situation before making any investment decision.)

1. Vanguard S&P 500 ETF (VOO)

Category

VOO is the best S&P 500 ETF to invest in for exposure to the most liquid stocks in the US market, and a staple if you are looking into the best Vanguard ETFs.

Overview

VOO invests in the 500 largest publicly traded U.S. companies, tracking the S&P 500 Index. Analysts see the S&P 500 Index as a good measure of the economic health of the United States. 

Key advantages

• Low expense ratio
• Broad diversification: It includes companies from various industries
• Strong long-term performance: It grows with the US economy. 

Risks to watch out for

• Concentration: Tech stocks are dominating S&P 500 funds
• Sensitive to the US equity market downturns

2. Vanguard Mid-Cap ETF (VO)

Category

VO is the best mid-cap ETF, targeting U.S. companies with market caps between $2B and $10B.

Overview

VO invests in mid-sized firms across diverse sectors, offering a balance of growth and stability. It tracks the CRSP US Mid Cap Index. 

Key advantages

• Low expense ratio
• Strong historical returns: Stronger performance than rivals

Risks to watch out for

• Sensitivity to the economic cycle
• More volatile than large caps

3. Vanguard Small-Cap ETF (VB)

Category

VB is the best small-cap blend ETF focused on U.S. companies under $2B in market cap.

Overview

VB invests in over 1,500 small-cap stocks, capturing early-stage growth potential. It tracks the CRSP US Small Cap Index. 

Key advantages

• Low expense ratio: 0.05%
• Better performance than its peers
• Broad diversification across sectors and industries

Risks to watch out for

• Sensitive to economic downturns
• Includes some speculative companies

4. Vanguard Total Stock Market ETF (VTI)

Category

VTI is the best ETF tracking the entire US market, irrespective of sector or market cap. 

Overview

VTI invests in large-, mid-, and small-cap stocks across all sectors. It seeks to track the performance of the CRSP US Total Market Index

Key advantages

• Low expense ratio
• Broad diversification

Risks to watch out for

• Overlap with VOO
• Sensitive to US market downturns

5. Vanguard FTSE Developed Markets ETF (VEA)

Category

VEA is the best developed market (excluding the US) stock ETF.

Overview

VEA invests in large-, mid-, and small-cap companies across Europe, the Pacific, and Canada. It tracks the FTSE Developed All Cap ex US Index. 

Key advantages

• Low expense ratio
• Broad diversification across developed economies
• Better short- and long-term performance

Risks to watch out for

• Currency risk
• High correlation with the US equity market

6. Vanguard FTSE Emerging Markets ETF (VWO)

Category

VWO is the best emerging market ETF. 

Overview

VWO invests in the stocks of companies located in various emerging markets across the globe. It tracks the FTSE Emerging Markets All Cap China A Inclusion Index.

Key advantages

• Low expense ratio
• Broader diversification: It contains more than 4,000 stocks
• Better long-term performance

Risks to watch out for

• Currency risk

7. Vanguard Total World Stock ETF (VT)

Category

VT is the best total world stock ETF.

Overview

VT invests in both US and international stocks, combining local and global exposure. It tracks the FTSE Global All Cap Index. 

Key advantages

• Low expense ratio
• Broad diversification: More than 9,000 holdings

Risks to watch out for

• The US still dominates
• Emerging markets are underrepresented

8. Invesco QQQ Trust (QQQ)

Category

QQQ is the best long-term ETF for growth-oriented investors. 

Overview

QQQ tracks the Nasdaq-100 Index, investing in tech-heavy and top-performing companies like Apple and Nvidia.

Key advantages

• High liquidity
• Strong past performance
• Better diversification: It doesn’t concentrate on technology stocks only

Risks to watch out for

• The top 10 holdings dominate
• No exposure to financials or energy sectors

9. Schwab U.S. Large-Cap Value ETF (SCHV)

Category

SCHV is the best long-term ETF for value investors. 

Overview

SCHV invests in large-cap undervalued US companies. It tracks the Dow Jones U.S. Large-Cap Value Total Stock Market Index.

Key advantages

• Low expense ratio
• Decent dividend yield
• Diversification across sectors

Risks to watch out for

• Often includes cyclical or declining businesses that are undervalued
• Financials and energy sectors dominate

10. Vanguard High Dividend Yield ETF (VYM)

Category

VYM is the best ETF focusing on high dividend yield. 

Overview

VYM tracks the FTSE High Dividend Yield Index, investing in companies with above-average dividend yields.

Key advantages

• Low expense ratio
• Strong long-term record
• High dividend yield

Risks to watch out for

• Financials and consumer staples dominate
• High dividend yield does not equal dividend consistency

11. WisdomTree US LargeCap Dividend ETF (DLN)

Category

DLN is the best dividend-growth ETF that focuses on large-cap stocks. 

Overview

DLN tracks the WisdomTree U.S. LargeCap Dividend Index, focusing on consistent dividend payers and growers.

Key advantages

• Diversified across sectors
• Stable dividend yield

Risks to watch out for

• Low growth
• Possible underperformance in bull markets

12. iShares Bitcoin Trust (IBIT)

Category

IBT is the best spot bitcoin ETF.  

Overview

IBIT tracks the spot price of Bitcoin, holding actual BTC in custody.

Key advantages

• High liquidity
• Low expense ratio
• Strong performance

Risks to watch out for

• High short-term volatility
• Relies on only Coinbase for custody

13. iShares Ethereum Trust ETF (ETHA)

Category

ETHA is the best spot Ethereum ETF. 

Overview

ETHA tracks the spot price of Ethereum, offering direct investment in the cryptocurrency.

Key advantages

• Strong inflows
• Institutional support

Risks to watch out for

• Adoption is not as strong as Bitcoin’s

14. SPDR Gold Shares (GLD)

Category

GLD is the best gold ETF to invest in to gain exposure to gold’s price. 

Overview

GLD tracks the price of gold bullion, held in the fund’s secure vaults. It offers a direct exposure to gold’s price without taking delivery (and safekeeping) of the precious metal. 

Key advantages

• Institutional support
• High liquidity
• Largest gold-backed ETF in the market

Risks to watch out for

• No dividends or interest
• Can underperform in bull markets

15. iShares Silver Trust (SLV)

Category

SLV is the best silver ETF to invest in. 

Overview

SLV tracks the price of silver through direct holdings of the metal. You can profit from the commodity’s price movements without holding physical silver. 

Key advantages

• Largest silver ETF
• Strong liquidity

Risks to watch out for

• Silver prices are volatile
• High expense ratio

16. VanEck Gold Miners ETF (GDX)

Category

GDX is the best gold mining stock ETF. 

Overview

GDX tracks the NYSE Arca Gold Miners Index, investing in global gold producers. It invests in multiple gold stocks rather than directly investing in physical gold. 

Key advantages

• Strong performance
• Diversified exposure
• Strong liquidity

Risks to watch out for

• Can outperform or underperform gold

17. Global X Silver Miners ETF (SIL)

Category

SIL is the best silver mining stock ETF. 

Overview

SIL tracks the Solactive Global Silver Miners Total Return Index, targeting silver producers across the globe. It invests in silver stocks instead of physical silver. 

Key advantages

• Provides global exposure
• Broad diversification

Risks to watch out for

• Low liquidity
• High volatility

18. Vanguard Real Estate ETF (VNQ)

Category

VNQ is the best real estate investment trust (REIT) ETF to invest in. 

Overview

VNQ invests in stocks issued by REITs. It tracks the MSCI US Investable Market Real Estate 25/50 Index.

Key advantages

• Strong historical performance
• Large and diversified holdings
• High dividend yield

Risks to watch out for

• Sensitive to interest rate changes

19. iShares Core U.S. Aggregate Bond ETF (AGG)

Category

AGG is the best total US bond market ETF. 

Overview

AGG tracks the BBG U.S. Aggregate Index (USD), which consists of investment-grade US bonds (Treasury, corporate, mortgage-backed securities, and other asset-backed securities). 

Key advantages

• Low expense ratio
• Strong returns
• High dividend yield
• Diversified holdings

Risks to watch out for

• Inflation risk
• Interest rate risk

20. iShares Core International Aggregate Bond ETF (IAGG)

Category

IAGG is the best international developed market (ex-US) bond ETF. 

Overview

IAGG tracks the Bloomberg Global Aggregate ex-USD Index, focusing on developed markets (ex-US) and China.

Key advantages

• Low expense ratio
• Low volatility
• Large and diversified holdings

Risks to watch out for

• The cost of currency hedging can impact returns
• Some bond holdings have thin liquidity

21. iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB)

Category

EMB is the best emerging market bond ETF. 

Overview

EMB tracks the J.P. Morgan EMBI Global Core Index, holding USD-denominated emerging market debt.

Key advantages

• High yield
• Strong liquidity
• Low expense ratio

Risks to watch out for

• Higher default risk in emerging markets
• Limited transparency in emerging markets

22. iShares Global Aggregate Bond ETF (AGGG)

Category

AGGG is the best global bond market ETF. 

Overview

AGGG tracks the Bloomberg Global Aggregate Bond Index, which covers investment-grade bonds in the US, developed markets (ex-US), and emerging markets.

Key advantages

• Large, diversified holdings
• High yield

Risks to watch out for

• Currency risk
• Overweight in the US and developed markets

23. VanEck Semiconductor ETF (SMH)

Category

SMH is the best thematic ETF focusing on semiconductors. 

Overview

SMH tracks the MVIS US Listed Semiconductor 25 Index, investing in chipmakers like Nvidia, AMD, Broadcom, and Taiwan Semiconductor Manufacturing.

Key advantages

• Strong performance
• Low expense ratio
• Strong liquidity

Risks to watch out for

• Concentration
• Geopolitical risk from some of the holdings

24. iShares Global Clean Energy ETF (ICLN)

Category

ICLN is the best thematic ETF focusing on clean and renewable energy. 

Overview

ICLN tracks the S&P Global Clean Energy Index, investing in solar, wind, and green tech.

Key advantages

• High liquidity 
• Strong dividend growth

Risks to watch out for

• Many of the holdings are small-cap and volatile
• Regulatory risk

25. ARK Genomic Revolution ETF (ARKG)

Category

ARKG is the best thematic ETF focusing on the biotechnology sector. 

Overview

ARKG is an actively managed ETF (combining characteristics of a mutual fund and a traditional passively-managed ETF) that invests in genomics, CRISPR, and precision medicine companies.

Key advantages

• Possibility of high returns due to active trading by fund managers

Risks to watch out for

• Many speculative and unprofitable holdings
• The fund often underperforms its benchmark

Building a diversified portfolio of ETFs in the UAE

And that’s the list of the best ETFs to invest in right now. 

This list shows how much diversification you can achieve by creating a portfolio of the most popular ETFs (which is one of the advantages of ETFs over index funds). 

You can diversify by themes, geographical markets, investment styles, investment objectives, investment strategies, market capitalization, and asset classes, among others. 

With Sarwa, you can buy any of the best ETFs to invest in, and others that didn’t make this list, right from the UAE. 

We provide a simple and intuitive platform that will make your investing and trading seamless. You will also access educational resources that will help you achieve your financial goals. 

You can start trading with as little as $500. We charge a commission of $1 or 0.25% of the traded value, and you don’t have to worry about any hidden fees. Also, deposits from and withdrawals to your bank accounts are free.   

Finally, our bank-level SSL security ensures that your data and money are safe. 

Are you ready to build a diversified portfolio of ETFs? Sign up today for Sarwa to start your investment journey on the right foot.

Takeaways

• ETFs simplify diversification and reduce the need for stock-picking.
• From the S&P 500 to thematic ETFs like clean energy and semiconductors, investors can build customized portfolios with ETFs.
• Many of the best ETFs to invest in also have risk factors that investors must weigh. 
• Investors can buy and manage ETFs easily with Sarwa’s secure, low-fee platform and expert insights.