These 3 Vanguard ETFs Could Skyrocket Amid 2026 Market Chaos—Are You Ready to Profit?

As the S&P 500 index hovers near all-time highs, Wall Street is experiencing a palpable unease driven by economic uncertainties and geopolitical tensions. Many investors are contemplating the risks of a potential bear market by 2026, and understandably so. However, long-term investors might find that a market downturn offers a unique opportunity rather than a deterrent. Among the various investment vehicles available, three Vanguard exchange-traded funds (ETFs) stand out for their resilience and long-term potential.

Three Vanguard ETFs to Consider for Long-Term Growth

The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a prime candidate. Tracking the S&P 500 index—the most referenced benchmark for the broader U.S. market—this ETF consists of about 500 companies vetted by a committee for their representation of the American economy. While some investors may hesitate to invest at such high levels, historical data indicates that the S&P 500 has consistently recovered and reached new highs after every bear market. This resilience makes VOO an appealing option for individuals ready to adopt a buy-and-hold strategy. The ETF boasts an impressively low expense ratio of just 0.03%, making it a cost-effective choice for long-term growth. If a market downturn does occur, it could enhance the ETF's attractiveness. Investors can consider dollar-cost averaging, which involves purchasing additional shares at lower prices, to optimize their long-term returns.

Next, the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) offers a distinct investment philosophy that focuses on well-established companies with a strong history of increasing dividends for at least a decade. This ETF screens for stocks that have consistently raised their dividends, eliminating the highest-yielding 25% to favor those with solid growth potential rather than just immediate returns. With an expense ratio of 0.05%, VIG emphasizes both diversification and stability, boasting a portfolio of over 330 stocks. This strategic approach ensures that investors are backing financially robust companies positioned for sustainable growth, even in turbulent market conditions.

The third ETF, the Vanguard Utilities ETF (NYSEMKT: VPU), is poised to benefit from a significant shift in electricity demand. A projected 55% increase in electricity consumption from 2020 to 2040—driven by trends such as artificial intelligence, data centers, and electric vehicles—signals a long-term growth trajectory for utility companies. Historically, the utility sector has remained stable, and with about 90% of VPU's portfolio related to this growing electricity demand, the ETF provides a straightforward way for investors to capitalize on these shifts. With a reasonable expense ratio of 0.9%, VPU offers a diversified investment option in this essential sector.

In summary, while timing the market can be a daunting task, a more prudent strategy might involve investing in ETFs like the Vanguard S&P 500 ETF, Vanguard Dividend Appreciation ETF, and Vanguard Utilities ETF. Each of these options presents a unique investment strategy and the potential for long-term growth, even amidst the looming threat of a bear market in 2026. For investors considering a $1,000 investment, it's worth noting that the Motley Fool's Stock Advisor team has recently identified ten stocks that they believe are superior to the Vanguard S&P 500 ETF at this time. Historical performance examples, such as Netflix and Nvidia, which saw substantial gains after being recommended, highlight the potential upside of exploring beyond conventional ETFs.

Ultimately, whether you choose to invest in these Vanguard ETFs or explore other options, maintaining a long-term perspective is key to navigating the complexities of the market.