As we head into 2026, consider adjusting your portfolio by adding index ETFs, which can play a significant role in your investment strategy. Small-cap stocks are gaining traction, with predictions of outperformance due to potential Federal Reserve rate cuts and economic stimulus benefiting domestic demand companies like the Vanguard Russell 2000 ETF.

Growth stocks have dominated the market, but 2026 might see a shift towards value stocks. Lower rates and a reversal of tariffs could boost cyclical value stocks like Vanguard 500 Value ETF and Schwab U.S. Dividend Equity ETF. These stocks could benefit from reduced interest expenses, leading to higher earnings.

Large-cap growth stocks, especially those tied to AI, have been strong performers. Vanguard Growth ETF, Vanguard Mega Cap Growth ETF, and Invesco QQQ ETF are solid options for investors looking to capitalize on growth stocks. Despite concerns about valuations, these companies show strong growth outlooks, making them attractive investments.

In 2026, the Vanguard Mega Cap Growth ETF is positioned to outperform due to its concentration in AI market leaders. This ETF could be a top performer for investors looking to capitalize on the continued strength of large-cap growth stocks. Consider this ETF for potential growth opportunities in the coming year.

Read more at Yahoo Finance: This Will Be the Top-Performing Index ETF in 2026