The S&P 500 just hit record highs after the strongest week since April, but smart investors know that which ETFs you hold matters more than the index itself. Here are our top picks for long-term growth and income in 2026.
- The S&P 500's record close and strong weekly gains suggest the bull market has room to run, making ETF positioning more critical than ever
- AI-focused ETFs like QQQ and SMH are capturing outsized growth from semiconductor and cloud spending, while traditional dividend ETFs like SCHD and VYM offer steady income
- Broad market ETFs like VTI and SPY provide diversified exposure, and a mix of growth and income funds can balance portfolio returns through 2026 and beyond
Market Context: Why ETF Positioning Matters in 2026
The S&P 500 closed at a record high on Friday and posted its strongest week since April, driven by a jobs report that surprised to the downside and eased fears about further Fed rate hikes. With the Dow, Nasdaq, and major indexes all benefiting from the same macro tailwinds, investors who are asking themselves which ETFs to buy 2026 are thinking about this correctly — broad market direction alone won't guarantee returns, and the best ETFs to buy 2026 depend on how much growth versus income you want.
Bloomberg reports that FOMO-driven buying of S&P calls is fueling a one-way flow of orders into the market, which is pushing valuations higher but also creating a scenario where disciplined ETF selection matters more than ever. FactSet data from August 7 shows that earnings season is still underway, and while companies are largely beating expectations, the next week's inflation data could shift the entire trajectory.
Tickers in focus
| Ticker | Company | Sector | Exchange |
|---|---|---|---|
| 1 | CK Hutchison Holdings | other | unknown |
| 101 | Hang Lung | real_estate | unknown |
| 1024 | Kuaishou Technology | telecom | unknown |
| 1038 | CK Infrastructure Holdings | utilities | unknown |
| 1044 | Hengan Group | consumer | unknown |
| 1055 | China Southern Airlines | industrials | unknown |
| 1061 | Essex Bio-Technology | health_care | unknown |
| 1066 | Shandong Weigao Group Medical Polymer | health_care | unknown |
| 1088 | China Shenhua Energy | energy | unknown |
| 1093 | CSPC Pharmaceutical | health_care | unknown |
| 1099 | Sinopharm Group | health_care | unknown |
| 1109 | China Resources Land | real_estate | unknown |
| 1113 | CK Asset Holdings | real_estate | unknown |
| 1171 | Yankuang Energy Group | energy | unknown |
| 1177 | Sino Biopharmaceutical | health_care | unknown |
| 12 | Henderson Land | real_estate | unknown |
Tools the pros use to research stocks — See recommended tools ›
Best ETFs to Buy 2026: Growth Picks
QQQ (Invesco QQQ Trust) remains one of the most popular ETFs to buy 2026 among investors seeking growth exposure to the tech-heavy Nasdaq. The fund tracks the Nasdaq-100 and gives investors broad access to mega-cap technology companies that have powered the index's record highs. With the Nasdaq jumping as Fed rate-hike odds sink, QQQ benefits directly from the rate environment and the ongoing AI spending cycle.
SMH (VanEck Semiconductor ETF) is another strong growth pick for 2026. Semiconductor stocks have been central to the AI boom, and companies like Micron, Marvell, and others continue to be major movers. The Motley Fool notes that some stocks are underperforming the S&P 500 and presents opportunities to buy names that could outperform in August and beyond.
SMH's holdings capture the chip cycle that underpins the AI infrastructure buildout. As AI adoption accelerates, the demand for semiconductors continues to grow, making this one of the best ETFs to buy 2026 for investors who want concentrated exposure to the AI theme.
Best ETFs to Buy 2026: Dividend and Income Picks
For investors who want income alongside growth, SCHD (Schwab US Dividend Equity ETF) offers a compelling combination of yield and quality. The fund screens for companies with strong dividends, solid balance sheets, and sustainable payout ratios. With dividend stocks gaining momentum as interest rate fears fade, SCHD has been a popular choice among investors asking which ETFs to buy 2026 for income.
VYM (Vanguard High Dividend Yield ETF) is another top pick in the income category. It tracks a broad index of high-dividend-yielding stocks and provides exposure to companies across sectors, not just financials or utilities. VYM's diversified approach means that investors get income exposure without being overly concentrated in any single industry.
MCD stock forecasts suggest that even consumer companies are delivering steady returns, with some analysts boosting price targets. Companies like McDonald's and similar dividend growers have historically performed well during periods of market uncertainty, making dividend ETFs a sensible hedge against volatility.
Best ETFs to Buy 2026: Broad Market Exposure
VTI (Vanguard Total Stock Market ETF) gives investors exposure to the entire U.S. stock market, from large-cap giants to mid- and small-cap companies. With the S&P 500 facing potential volatility unwind according to Seeking Alpha, broad market ETFs like VTI offer diversification that can smooth out returns over time.
SPY (SPDR S&P 500 ETF Trust) remains the most liquid ETF in the market and is a core holding for investors who want S&P 500 exposure. The S&P 500's record highs and strong weekly gains have pushed SPY to new levels, but the index's breadth means that investors benefit from exposure to both growth and value stocks.
Investor's Business Daily reports that big earnings are ahead and that bulls are still ruling, which means the broad market has room to grow. ETFs like VTI and SPY capture this exposure without the concentration risk of single-stock picks.
Platform Data: AI-Powered Predictions for ETFs
Our platform generates AI-based price predictions for ETFs by analyzing historical price data, earnings trends, and macroeconomic indicators. These predictions are not guarantees, and past performance does not guarantee future results, but they provide a useful framework for comparing ETFs.
For example, the AI Stock Predictions model has generated specific forecasts for ETFs like QQQ, SMH, SCHD, VYM, VTI, and SPY, taking into account current price levels, earnings growth, and sector trends. The AI price targets for these funds reflect the expectation that AI spending will continue to drive growth in the semiconductor and cloud sectors, while dividend ETFs will benefit from the ongoing search for yield.
Investors using our platform can see these predictions alongside the ETFs' current prices and historical performance, which helps in comparing the expected return potential of each fund.
How to Choose Between Growth and Income ETFs
The choice between growth and income ETFs comes down to your investment timeline, risk tolerance, and income needs. If you're investing for the long term and can tolerate short-term volatility, growth ETFs like QQQ and SMH may offer higher returns. If you need steady income or want to reduce portfolio volatility, dividend ETFs like SCHD and VYM are more appropriate.
A balanced approach — mixing growth and income ETFs — can provide the best of both worlds. This is particularly relevant in 2026, with the S&P 500 at record highs and Fed rate expectations shifting. A portfolio that includes both QQQ for growth and SCHD for income could capture upside from the bull market while still generating steady returns.
Final Thoughts: The Best ETFs to Buy 2026
The best ETFs to buy 2026 are those that match your investment goals. For growth, QQQ and SMH offer strong exposure to the AI and tech sectors. For income, SCHD and VYM provide steady dividends and broad market diversification. For broad market exposure, VTI and SPY give you the entire U.S. market in a single fund.
With the S&P 500 at record highs and big earnings ahead, now is a good time to position your portfolio. Whether you're asking which ETFs to buy 2026 from a Reddit perspective or from a professional standpoint, the answer is the same: choose ETFs that align with your goals and hold them through the market cycle.
Frequently asked questions
What are the best ETFs to buy in 2026?
The best ETFs to buy in 2026 include growth-focused funds like QQQ and SMH, income-focused funds like SCHD and VYM, and broad market funds like VTI and SPY. The choice depends on whether you prioritize growth, income, or a balance of both.
Which ETF should I buy for long-term growth?
QQQ and SMH are strong choices for long-term growth, with QQQ providing broad technology exposure and SMH offering concentrated exposure to the semiconductor sector. Both have benefited from the AI boom and are positioned well for continued growth.
What are the best dividend ETFs for income in 2026?
SCHD and VYM are among the best dividend ETFs for income in 2026. SCHD screens for quality dividend payers, while VYM offers a broader index of high-dividend-yielding stocks. Both provide steady income with lower volatility than growth-focused ETFs.
How does the S&P 500 performance affect ETF buying in 2026?
The S&P 500's record highs suggest the bull market is strong, but investors should consider both growth and value ETFs. Funds like SPY and VTI provide broad market exposure, while growth ETFs like QQQ benefit from the tech-heavy composition of the S&P 500.
Are AI ETFs a good buy in 2026?
AI ETFs like SMH are a good buy in 2026, given the ongoing AI infrastructure buildout and strong demand for semiconductors. The AI spending cycle is expected to continue driving growth in the sector, making AI-focused ETFs a compelling choice for investors.
Please note. AI Stock Predictions content is generated by artificial-intelligence and machine-learning models for educational and informational purposes only. It is NOT financial, investment or trading advice. Forecasts can be wrong. Always do your own research and consult a licensed financial advisor before making investment decisions. Investing involves risk, including possible loss of principal.