1 Vanguard ETF to Buy Every Time the Market Dips

6 days ago 4

Stefon Walters, The Motley Fool

Thu, April 30, 2026 astatine 9:05 AM CDT 4 min read

There's 1 happening for definite astir the banal market: It volition ever beryllium volatile. Always has been, ever volition beryllium -- it's portion of its DNA. Unfortunately, portion of that volatility involves banal prices dropping, but it doesn't ever person to beryllium a atrocious thing. Market dips tin beryllium a large clip to bargain bully investments astatine a discount (or astatine slightest cheaper than they were).

One Vanguard exchange-traded money (ETF) I load up connected erstwhile the marketplace dips is the Vanguard S&P 500 ETF (NYSEMKT: VOO). It's a one-stop store that I don't person to second-guess. This exchange-traded money (ETF) is led by bluish spot companies and has stood the trial of time.

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A greenish affirmative banal arrow connected apical of a dollar bill.

I'll ever stake connected the U.S. system to bounce backmost agelong word

The S&P 500 is people tied to the U.S. system due to the fact that the companies successful the scale thrust overmuch of the country's economical activity. You tin ne'er 100% warrant thing with the banal market, but 1 of the surest bets you tin marque is that the S&P 500 volition spell up implicit time.

It volition undoubtedly deed immoderate unsmooth patches on the way, but its semipermanent trajectory is positive. The Vanguard S&P 500 ETF has been astir lone since September 2010, but if we look astatine the S&P since immoderate of the worst recessions successful the country's history, it has ever bounced back.

As of marketplace adjacent connected April 27, the scale is up implicit 7,200% since its trough during the 1980 recession (dating from March 1980); implicit 820% since its trough during the dot-com bubble (beginning successful October 2002), and 220% since its trough during the pandemic (from March 2020).

Of course, determination was nary mode to cognize it was the trough astatine the time, but the larger constituent is that aft each downturn, the S&P 500 bounced backmost with the U.S. economy. Those who enactment the people and proceed investing are often rewarded implicit time.

Tech dips person go marketplace dips

The Vanguard ETF gives you a low-cost mode to instantly put successful immoderate of the world's apical companies. It includes each large U.S. sector, but overmuch of its show depends connected large tech (like the "Magnificent Seven" stocks), fixed however overmuch of the ETF it accounts for. Here are its 10 largest holdings:

Nvidia: 7.58% of the ETF
Apple: 6.66%
Microsoft: 4.92%
Amazon: 3.64%
Alphabet (Class A): 2.99%
Broadcom: 2.62%
Alphabet (Class C): 2.40%
Meta: 2.24%
Tesla: 1.87%
Berkshire Hathaway (Class B): 1.57%