Better Buy in 2026: Bitcoin or a Broad-Market ETF? The Answer Couldn't Be Clearer for Long-Term Investors
This strategy has, historically, been a very good one. Since the fund's inception in 2010, it has had an annual average return of 14.8%. There's no guarantee you will receive those returns in any given year, of course, but it does show that the fund's diversification can lead to impressive returns when various economic sectors are doing well.
Some investors don't like passive ETF investing and want the ability to personally select stocks and cryptos for their portfolio. I understand the appeal, and there's nothing wrong with that strategy. But it becomes difficult when, as now, the direction of the economy and many in dustries is hazy.
That's why buying this Vanguard ETF makes sense right now. While other investors try to figure out which sectors and companies will benefit or be dismantled by AI, or how tariffs will affect industrial companies in the coming years, you can instead put your money into a fund that spreads out your investments into a basket of stocks.
Not only will you be well diversified, but you also will pay a very low annual expense ratio of just 0.03%, compared to the average S&P 500 fund fee of 0.41%.That means for every $1,000 invested in the fund, you will pay just $0.30 annually.
I don't think Bitcoin is a bad investment, but with 2026 already off to an uncertain start, loading up on the Vanguard S&P 500 ETF may look like a wise move several years from now.
Should you buy stock in Bitcoin right now?
Before you buy stock in Bitcoin, 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 Bitcoin 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 $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 3, 2026.
Chris Neiger has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Bitcoin and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Better Buy in 2026: Bitcoin or a Broad-Market ETF? The Answer Couldn't Be Clearer for Long-Term Investors was originally published by The Motley Fool
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