Market volatility has been a key theme in 2026 so far, driven by shifting interest-rate expectations, geopolitical tensions, and mixed corporate earnings across sectors. While the S&P 500 (SPX) is up about 4% year-to-date, some ETFs have quietly outperformed the broader market. Using TipRanks’ Best Vanguard ETFs tool, we identified Vanguard Energy ETF (VDE), Vanguard High Dividend Yield Index ETF (VYM), and Vanguard Consumer Staples ETF (VDC).
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Let’s take a look at these ETFs in detail.
Vanguard Energy ETF (VDE)
The Vanguard Energy ETF (VDE) gives investors low-cost exposure to the U.S. energy sector by tracking the MSCI US Investable Market Energy 25/50 Index. It has a low expense ratio of 0.09%, making it a cost-efficient way to invest in energy stocks. The ETF tends to perform well when oil prices rise and is often seen as a potential inflation hedge.
Over the past five years, VDE has gained more than 100%, driven by strong performance across the energy sector.
In terms of holdings, VDE holds 108 stocks with total assets worth $10.27 billion. Its top three holdings are Exxon Mobil Corp. (XOM), Chevron (CVX), and ConocoPhillips (COP).
Vanguard High Dividend Yield Index ETF (VYM)
The Vanguard High Dividend Yield ETF follows a simple strategy of investing in a broad mix of U.S. companies that pay above-average dividends, making it a diversified option for income-focused investors. It has a very low expense ratio of 0.04%, which helps keep costs minimal.
In 2026 so far, VYM has quietly outperformed the SPX, supported by strong demand for defensive, income-generating stocks during periods of market volatility. Its focus on large, stable dividend payers has helped the ETF hold up better than the broader market while still delivering solid returns.
VYM holds 615 stocks and manages around $75.36 billion in assets. Its top three holdings are Broadcom (AVGO), JPMorgan Chase (JPM), and XOM.
Vanguard Consumer Staples ETF (VDC)
The Vanguard Consumer Staples ETF (VDC) invests in companies that produce everyday essentials like food, beverages, and household products. Because demand for these goods stays steady even during economic downturns, the ETF is often viewed as a defensive investment with lower volatility compared to growth-heavy sectors like technology.
It has a beta of 0.30, reflecting its relatively stable price movements. However, this stability comes with a trade-off, as consumer staples stocks typically deliver slower but more consistent long-term growth.
VDC owns 106 stocks with total assets of $8.13 billion. Its top holdings include major consumer brands such as Walmart (WMT), Costco Wholesale (COST), and Procter & Gamble (PG).