3 Strong Vanguard ETFs to Purchase Even During a Stock Market Drop in 2026

October 30, 2025

If you’re aiming to create a well-rounded investment portfolio, these three Vanguard ETFs might be just what you need, even in uncertain market conditions.

There’s no denying that the recent bull market has been quite remarkable. However, with the S&P 500 index reaching a new peak, some investors might hesitate to dive back into stocks.

For most, it’s generally more beneficial to invest early and stay the course rather than trying to time the market. This is why these three affordable Vanguard exchange-traded funds (ETFs) could serve you well, even if a market downturn occurs in 2026.

1. Vanguard Total Stock Market ETF

When people say “the market”, they typically refer to the S&P 500 index, which you can own through the Vanguard S&P 500 ETF. However, it’s important to note that this comprises around 500 stocks chosen to reflect the U.S. economy. While it’s a decent representation, if you want a true slice of the “market”, turning to the Vanguard Total Stock Market ETF is a better option. This fund essentially covers all U.S. stocks by using a market cap weighted method.

Vanguard Total Stock Market ETF

Today’s changes

(-1.07%) $-3.63

current price

$334.08

Key data points

Market capitalization

billion dollars

daily range

$334.05 – $337.18

52 week range

$236.42 – $339.06

volume

average volume

gross profit

0.00%

dividend yield

Not applicable

The Vanguard Total Stock Market ETF has an expense ratio of just 0.03%, which is incredibly low. Plus, it accurately reflects market performance. Yes, it does have a tech-heavy lineup similar to the S&P 500, including companies like Nvidia, Apple, and Microsoft, but owning more than 3,500 stocks offers broader market exposure compared to the S&P 500’s 500 stocks.

2. Vanguard Total International Stock ETF

The U.S. plays a significant role in the global economy, but it’s just one piece of the puzzle. That’s why pairing it with the Vanguard Total International Stock ETF makes sense. This fund invests in stocks from non-U.S. companies and has an expense ratio of 0.05%. The costs can be higher when operating internationally, which is reflected in this fund. It includes around 8,700 stocks in its portfolio.

Vanguard Total International Stock ETF

Today’s changes

(-0.62%) $-0.47

current price

$74.81

Key data points

Market capitalization

billion dollars

daily range

$74.64 – $75.11

52 week range

$54.98 – $75.75

volume

4.6M

average volume

gross profit

0.00%

dividend yield

Not applicable

Europe accounts for about 38% of the portfolio, with emerging markets close to 28%, and Asia holding around 25%. By combining the Vanguard Total International Stock ETF with the Vanguard Total Stock Market ETF, you can create a well-diversified stock collection, allowing you to control your level of international exposure.

3. Vanguard Total Bond Market ETF

You’ll definitely need some bonds to balance things out. The reliable option here is the Vanguard Total Bond Market ETF. This ETF invests in high-quality, taxable U.S. bonds and has a low expense ratio of 0.03%. While exploring foreign bonds could be a good move, they do come with complexity, so it’s advisable to be cautious.

Generally, investing in bonds from stable countries with strong regulations can pay off. Bond ETFs typically help stabilize your portfolio, which contrasts sharply with the potentially more exciting stories behind stock ETFs. Bonds, in a sense, can feel more mundane.

Putting it all together

Ultimately, the aim is to build a three-ETF portfolio you can consistently invest in, regardless of market fluctuations. Some days U.S. stocks may shine, while other times they won’t. The same goes for foreign stocks and bonds. The idea is to diversify without overly concentrating on one investment.

Traditionally, a mix of 60% stocks and 40% bonds has been considered a good foundation. If you’re younger, leaning more towards stocks might suit you, while older investors may prefer a higher fixed-income proportion. A bias toward U.S. stocks could be logical, yet a balanced approach isn’t out of the question.

After determining your asset allocation across these three ETFs, aim to rebalance yearly. Also, review your distribution every five years to make sure it’s still in line with your age and risk tolerance. What’s happening in 2026 won’t be as significant as what’s ahead in the upcoming decades, so it’s reassuring to know you’re crafting a portfolio built to endure whatever comes next.