3 Magnificent ETFs I'm Buying Hand Over Fist in 2026
2026-08-04 09:19
•Stefon Walters •The Motley Fool
••• ••• Axe Cap view
Three U.S. ETFs Worth Watching from a South African Lens
A pragmatic look at key U.S. ETFs through the rand and JSE-linked lens for 2026.
South African investors often chase direct rand-hedges but overlook global ETFs that can diversify core USD exposure. Vanguard’s S&P 500 ETF (VOO) anchors broad market exposure and has enjoyed solid returns recently, but currency swings in USD/ZAR can amplify volatility here. For steady income, Schwab’s Dividend ETF (SCHD) offers a reliable 3%+ yield by focusing on robust, dividend-growing U.S. companies—not a bad complement to locally yield-rich names like Standard Bank or Sanlam. Meanwhile, Invesco’s Nasdaq 100 ETF (QQQM) loads up on big tech for growth, but given Prosus and Naspers already cover some global tech exposure on the JSE, doubling down via QQQM makes sense mainly if you want extra U.S. tech growth pumped through rand strength. The main caveat: a sharp ZAR rally or renewed local equity strength could limit their outperformance. this is just our opinion and not financial advice
Buy VOO and SCHD for diversified, quality U.S. exposure with a rand-hedging mindset. Add QQQM selectively if looking for tech-driven alpha, but be cautious of currency swings.
- VOO
- SCHD
- QQQM
- USD/ZAR
- Rand strengthening against the dollar, reducing USD returns
- Local equity bounce making JSE-focused stocks more attractive
6/10
The author recommends three complementary ETFs for 2026: Vanguard S&P 500 ETF (VOO) for broad U.S. market exposure, Schwab U.S. Dividend Equity ETF (SCHD) for income from high-quality dividend stocks, and Invesco Nasdaq 100 ETF (QQQM) for growth exposure to large-cap tech companies. Together, they provide diversification across growth, income, and stability.
Our take is based on reporting first published by The Motley Fool.