Most Investors Don't Need to Fear a Crash

Tuesday 18th of March 2025 17:00:00

Most Corrections Don't Result in Bear Market: ETFs to Buy

A market correction can be a daunting experience for investors, but the reality is that most corrections don't result in a bear market. In fact, according to Zacks Investment Research, the S&P 500 has experienced a correction (a decline of 10% or more from a recent high) about 15 times since 1980, but only 5 of those corrections have led to a bear market (a decline of 20% or more from a recent high).

This data suggests that corrections are a normal part of the market's ups and downs, and that they often present a buying opportunity. As the saying goes, "buy the dip" - and that's exactly what many investors are doing.

So, what ETFs should you be buying during this correction? Here are a few suggestions:

  • The Vanguard Total Stock Market ETF (VTI) tracks the CRSP US Total Market Index, which includes nearly all publicly traded US companies. With a low expense ratio of just 0.04%, VTI is a great way to get broad exposure to the US market.
  • The Schwab US Broad Market ETF (SCHB) also tracks the CRSP US Broad Market Index, which includes nearly all publicly traded US companies. With an expense ratio of just 0.03%, SCHB is a great option for investors looking for a low-cost way to get broad exposure to the US market.
  • The iShares Core S&P 500 ETF (IVV) tracks the S&P 500 Index, which is widely considered to be a benchmark for the US stock market. With an expense ratio of just 0.04%, IVV is a great way to get exposure to the S&P 500 Index.
  • The Invesco QQQ ETF (QQQ) tracks the Nasdaq-100 Index, which is widely considered to be a benchmark for the technology-heavy Nasdaq market. With an expense ratio of just 0.20%, QQQ is a great way to get exposure to the technology sector.

Remember, corrections are a normal part of the market's ups and downs, and they often present a buying opportunity. By investing in a diversified portfolio of ETFs, you can take advantage of these opportunities and build a strong foundation for your investments.