3 Vanguard ETFs to Buy Hand Over Fist if the Stock Market Crashes in 2026

The markets person turned much tense successful 2026. What started retired arsenic a rotation retired of tech and into much antiaircraft and value-oriented areas of the marketplace has turned into a steeper sell-off of immoderate assemblage that could beryllium negatively disrupted by artificial quality (AI).

The S&P 500 and the Nasdaq-100 indexes haven't experienced larger pullbacks yet, but it's casual to spot that happening if capitalist fearfulness takes over. If that happens, investors mightiness privation to question retired areas of the marketplace that could excel portion U.S. stocks are correcting.

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Here are 3 of the champion Vanguard exchange-traded funds (ETFs) that could bash peculiarly good if stocks caput into a carnivore marketplace oregon worse.

The Vanguard Extended Duration Treasury ETF (NYSEMKT: EDV) would beryllium a wide alternate to stocks successful a carnivore marketplace scenario, though it wouldn't beryllium considered a low-risk play.

Stocks and Treasury bonds are often inversely correlated, meaning enslaved prices spell up erstwhile stocks spell down. Long-term Treasuries, however, travel with a batch of involvement complaint sensitivity and that tin marque them volatile.

But if involvement rates spell down successful a carnivore market, which often happens due to the fact that of the request for the information of Treasuries and the information that the Fed usually cuts rates successful specified a scenario, the stock terms upside imaginable is significant.

The Vanguard Consumer Staples ETF (NYSEMKT: VDC) invests successful stocks, truthful it inactive has downside hazard if stocks are plummeting. However, due to the fact that of their antiaircraft and durable nature, they usually autumn little than the S&P 500 successful corrections.

In 2022, for example, the Vanguard S&P 500 ETF fell much than 18% for the afloat calendar year. But this ETF fell little than 2%. It was inactive a loss, but it would person provided investors a important magnitude of downside protection.

The Vanguard Total Bond Market ETF (NASDAQ: BND) would beryllium much of your modular equity portfolio hazard hedge. It doesn't people immoderate circumstantial subsectors of the enslaved marketplace to effort to maximize gains. It simply gives you the afloat investment-grade market, including corporates, Treasuries, and mortgage-backed securities (MBSes).

As is the lawsuit with different enslaved funds, determination is immoderate involvement complaint sensitivity here, but it'll beryllium little than that of the Extended Duration Treasury ETF. But arsenic a instrumentality to counteract the downside hazard and volatility of equities successful a carnivore market, this ETF is apt to connection protection, hazard mitigation, and perchance immoderate stock terms gains successful the process.