The Best ETFs to Invest in Right Now

Key Points

• Investing in ETFs can simplify the process and provide diversification with a few investments.

• Schwab U.S. Dividend Equity ETF provides investors with exposure to high-quality dividend stocks.

• The Vanguard Total International Stock ETF contains thousands of companies from around the world.

• 10 stocks we like better than Schwab U.S. Dividend Equity ETF ›

One of the bigger investing myths is that it's complicated and time-consuming. This couldn't be further from the truth, especially when you're investing in exchange-traded funds (ETFs). ETFs allow you to invest in multiple companies at once, often providing instant diversification and checking off many other boxes.

Investing in ETFs can be especially helpful during times when there's more uncertainty than usual in the stock market, or when top-name companies have stretched valuations, like many would agree is the case now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

If you're looking for two ETFs to add to your portfolio, the following are good options to consider. They each have a different purpose and can complement each other well in your portfolio.

Image source: Getty Images.

1. Schwab U.S. Dividend Equity ETF

You can't predict how a stock or ETF's price will move, but one thing you can count on is consistent dividend payouts if you're investing in a quality dividend stock or ETF. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) fits that description.

SCHD tracks the Dow Jones U.S. Dividend 100 Index, which requires a company to have consistent cash flow, a strong balance sheet, and at least 10 years of dividend payouts to be included. This criteria means that SCHD is full of high-quality companies, which is the goal when you're planning to hold onto an ETF for the long term (which should always be the case).

SCHD's dividend yield is just over 3.7%, which is above its average for the past decade, and close to three times the S&P 500's average dividend.

SCHD Dividend Yield data by YCharts

Dividend payouts from ETFs aren't set in stone like regular stocks and fluctuate because different companies pay out their dividends on different schedules. However, SCHD has increased its payout by over 160% in the past decade. That's the type of payout growth you want because reinvested dividends buy more shares, and larger payouts accelerate the compounding effect.

Having a consistent and attractive dividend has a two-for-one benefit. On one end, it adds to your returns when the ETF is trending upward. On the other hand, it can help cushion losses when the ETF is experiencing a down period.

2. Vanguard Total International Stock ETF

Having diversification is one of the key pillars in investing, but people can sometimes forget that this also means having diversification in geographic locations. That's where the Vanguard Total International Stock ETF (NASDAQ: VXUS) comes in handy.

VXUS gives investors exposure to companies from virtually all parts of the non-U.S. world. While many international ETFs focus on specific countries or markets, VXUS contains thousands of companies from both developed and emerging markets.

Investing in companies from both markets gives investors the best of both worlds. You get the (relative) stability that often comes with investing in developed markets, while also getting the growth opportunities that often come with investing in emerging markets. Below is how the ETF is divided by region:

• Europe: 39%
• Emerging markets: 27.2%
• Pacific: 25.4%
• North America: 7.7%
• Middle East: 0.7%

VXUS has underperformed the S&P 500 over the past decade, largely due to the rise in valuations from megacap American tech companies. However, it has almost doubled the S&P 500's returns this year.

VXUS data by YCharts

With the S&P 500 trading at historically high levels, VXUS can be a good hedge against any potential pullback the American market could experience. I wouldn't put the bulk of my portfolio in international stocks and would still favor leaning on the S&P 500 as the foundation of my portfolio. However, having around 10% of your portfolio in international stocks could be a good target for many investors.

Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now?

Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,694!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,082,963!*

Now, it’s worth noting Stock Advisor’s total average return is 1,067% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 15, 2025

Stefon Walters has positions in Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends Vanguard Total International Stock ETF. The Motley Fool has a disclosure policy.