From The Motley Fool · Ben Gran · · 1m 10s
3 ETFs to Weather Stock Market Volatility
Three low-cost ETFs outperform tech-heavy markets during crashes.
In brief
Three low-cost ETFs outperform tech-heavy markets during crashes. Vanguard S&P 500 ETF (VOO), Vanguard Morningstar Total Stock Market ETF (VTI), and Schwab U.S. Broad Market ETF (SCHB) offer low fees and broad diversification to ride out stock market crashes. Originally reported by The Motley Fool.
Why low-cost ETFs beat stock market crashes
The stock market's average annual return is about 10% over 98 years since 1928.
Vanguard S&P 500 ETF (VOO) performance
VOO tracks the S&P 500 with 14.9% average annual returns over 16 years since 2010.
Schwab U.S. Broad Market ETF (SCHB) performance
SCHB holds 2,394 large-cap stocks with 14.3% average annual returns over 17 years since 2009.
Vanguard Morningstar Total Stock Market ETF (VTI) performance
VTI covers 3,519 stocks with 9.4% average annual returns over 25 years since 2001.
Tech stocks in these ETFs
These ETFs own major tech stocks but are less tech-heavy than tech-focused funds.
2022 bear market performance
These ETFs outperformed the Nasdaq-100 during the 2022 bear market.
Why these ETFs work
Index funds let investors ride market volatility by owning the market's collective wisdom.
The big picture
Vanguard S&P 500 ETF (VOO), Vanguard Morningstar Total Stock Market ETF (VTI), and Schwab U.S. Broad Market ETF (SCHB) offer low fees and broad diversification to ride out stock market crashes.
