The 7 best ETFs for beginners in 2026. Start investing with under $100. Compare VOO, VTI, SCHD, QQQ and more with expense ratios and returns.
Exchange-traded funds (ETFs) are the simplest way to start investing — you get instant diversification, low fees, and you can begin with less than $100. After analyzing hundreds of funds, here are the 7 best ETFs for beginners in 2026.
Ready to invest? Open a brokerage account to buy ETFs commission-free.
Compare Brokerages Investment CalculatorThe gold standard of index investing. VOO tracks the 500 largest U.S. companies — Apple, Microsoft, Amazon, and more. Warren Buffett recommends S&P 500 index funds for most investors, and VOO is the best-in-class option with rock-bottom fees.
Why it's great for beginners: One purchase gives you ownership in 500 top companies. The 0.03% expense ratio means you keep virtually all your returns. Most brokers offer fractional shares, so you can start with as little as $1.
VTI goes even broader than VOO — it holds over 3,600 stocks covering large, mid, and small-cap U.S. companies. If you want "the entire U.S. stock market in one fund," this is it.
Why it's great for beginners: Even more diversified than VOO with small and mid-cap exposure. Same ultra-low 0.03% fee. See our full VOO vs VTI comparison.
SCHD focuses on high-quality dividend-paying companies — think Coca-Cola, Pfizer, and Home Depot. It's the top pick for beginners who want regular income from their investments.
Why it's great for beginners: Quarterly dividend payments let you see real cash returns. Lower volatility than growth-focused ETFs. Excellent "set and forget" fund.
QQQ tracks the Nasdaq-100 — heavily weighted toward tech giants like Apple, Nvidia, Meta, and Google. It's the go-to for investors bullish on technology and innovation.
Why it's great for beginners: Highest growth potential on this list. Tech-heavy portfolio captures the AI and innovation trend. Higher fees and volatility are the trade-off.
BND invests in thousands of U.S. investment-grade bonds — government and corporate. It's the stabilizer for any portfolio, providing steady income with much less volatility than stocks.
Why it's great for beginners: Reduces portfolio risk. Essential for conservative investors or those nearing a financial goal. Pairs well with VOO or VTI for a balanced portfolio.
VT is the ultimate one-fund solution — it holds over 9,500 stocks from the U.S. and 40+ other countries. One purchase, global diversification, done.
Why it's great for beginners: Truly "buy the world." No need to decide between U.S. and international — you get both. The simplest possible portfolio: just VT.
VXUS covers everything outside the United States — Europe, Asia, emerging markets. Pair it with VTI for complete global coverage with more control over your U.S./international split.
Why it's great for beginners: International diversification at 0.08%. Common pairing: 60% VTI + 40% VXUS for a globally diversified portfolio.
| ETF | Focus | Expense Ratio | 1-Yr Return | 5-Yr Return | Best For |
|---|---|---|---|---|---|
| VOO | S&P 500 | 0.03% | +26.1% | +89.7% | Core U.S. holding |
| VTI | Total U.S. Market | 0.03% | +24.8% | +85.2% | Broadest U.S. exposure |
| SCHD | U.S. Dividends | 0.06% | +15.3% | +62.4% | Income investors |
| QQQ | Nasdaq-100 / Tech | 0.20% | +30.2% | +112.5% | Growth / tech bulls |
| BND | U.S. Bonds | 0.03% | +5.8% | +2.1% | Stability / income |
| VT | Total World | 0.07% | +20.3% | +67.8% | One-fund portfolio |
| VXUS | International | 0.08% | +12.6% | +34.2% | Non-U.S. diversification |
100% VT — One fund, global diversification. You're done. Rebalancing? Not needed.
80% VTI + 20% VXUS — All-stock, globally diversified. Better for younger investors with a long time horizon.
60% VTI + 20% VXUS + 20% BND — The classic "Bogleheads" approach. Stocks for growth, bonds for stability.
50% VOO + 30% SCHD + 20% BND — Growth plus dividends plus stability. Great for investors who like seeing regular income.
Fidelity — $0 commissions, fractional shares, excellent research tools, no account minimums. Best all-around choice for beginners.
Charles Schwab — $0 commissions, strong mobile app, great customer service. Schwab proprietary ETFs (like SCHD) are excellent.
Robinhood — Sleek app, $0 commissions, fractional shares, easiest sign-up process. Best for mobile-first investors.
You can start with as little as $1 if your brokerage offers fractional shares (Fidelity, Schwab, and Robinhood all do). There are no minimum investment requirements for most ETFs — you just need enough to buy at least a fractional share. We recommend starting with whatever you can comfortably invest each month, even if it's just $25-50.
An expense ratio is the annual fee an ETF charges, expressed as a percentage of your investment. For example, VOO's 0.03% expense ratio means you pay $0.30 per year for every $1,000 invested. Lower is better — over decades, even small differences compound significantly. Avoid any ETF charging more than 0.50% unless it offers something truly unique.
Both are excellent choices and you really can't go wrong with either. VOO tracks the S&P 500 (large-cap only), while VTI includes the entire U.S. stock market (large, mid, and small-cap). Historically their performance is nearly identical. VTI offers slightly more diversification. Read our detailed VOO vs VTI comparison.
ETFs are one of the safest ways to invest in the stock market because they're diversified — you're not betting on a single company. A broad index ETF like VOO or VTI holds hundreds or thousands of stocks, so one company's bad performance has minimal impact. That said, all stock investments carry risk and can lose value in the short term. Invest money you won't need for at least 5 years.
The best approach for beginners is dollar-cost averaging: invest a fixed amount at regular intervals (weekly, bi-weekly, or monthly). This removes the stress of timing the market and smooths out price fluctuations over time. Set up automatic recurring purchases through your brokerage and let compounding do the work. Use our calculator to see how regular investing grows over time.
Start investing today
Open a free brokerage account and buy your first ETF in minutes.
Compare Brokerages Investment Calculator VOO vs VTIDisclaimer: This article is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. All return figures are approximate and based on data available as of April 2026. Always do your own research before investing.
The content on this page is for informational purposes only and should not be considered financial advice. Rates, terms, and offers are subject to change. We may earn a commission through affiliate links at no extra cost to you. See our full disclaimer.
© 2024–2026 AIHowToInvest.com | About | Contact | Privacy | Terms | Disclaimer