Stock Market Dips: Top 3 Secure and Reliable Exchange-Traded Funds (ETFs) Worth Investing in Immediately
Investing in the stock market during a correction can be nerve-wracking, but it's also an excellent opportunity to put your money to work. Here are three superb Exchange-Traded Funds (ETFs) that can help you weather the market storm and secure your financial future.
1. Schwab U.S. Dividend Equity ETF (SCHD)
When the Nasdaq Composite and S&P 500 head into correction territory, it's smart to invest in companies that pay dividends. The Schwab U.S. Diversity Equity ETF (SCHD) focuses on dividend-paying companies, offering a yield of over 3.5%! This ETF mirrors the Dow Jones U.S. Dividend 100 Index, which is full of large-cap, tested, and recurringly profitable businesses. Historically, dividend stocks have beaten non-payers and are less volatile than the broader market. With a microscopic net expense ratio of 0.06%, the Schwab U.S. Dividend Equity ETF is a fantastic choice for capital preservation and modest appreciation.
2. Vanguard S&P 500 ETF (VOO)
For long-term investors, the Vanguard S&P 500 ETF (VOO) is an excellent pick. This index fund aims to mirror the total return of the S&P 500, which has consistently delivered positive returns over 100 years. Though it mirrors the market's ups and downs, investing in the S&P 500 is statistically a smart bet for long-term gains. The Vanguard S&P 500 ETF has a low net expense ratio of 0.03% and a yield of 1.2%. With regular distributions and a long-term track record of success, the Vanguard S&P 500 ETF is a reliable choice for long-term investors.
3. iShares 0-3 Month Treasury Bond ETF (SGOV)
If you're risk-averse and prefer to park your cash while you wait out market volatility, consider the iShares 0-3 Month Treasury Bond ETF (SGOV). This ETF invests in Treasury bills with maturities of three months or less, offering several advantages. First, the U.S. government backs these investments. Second, you'll receive monthly distributions, making it a great income source. Third, the iShares 0-3 Month Treasury Bond ETF provides a higher yield than CDs and high-yield savings accounts for virtually all banks and credit unions. With a net expense ratio of 0.09%, the iShares 0-3 Month Treasury Bond ETF is an excellent choice for short-term safety.
Investing in ETFs is an excellent way to diversify your portfolio, minimize risk, and pursue your financial goals. These three ETFs offer capital preservation, modest appreciation, and short-term safety during market corrections. Always consider your investment goals and risk tolerance before investing. Happy investing!
- During market corrections, investing in dividend-paying companies through the Schwab U.S. Dividend Equity ETF (SCHD) can be a smart move, as it offers a yield of over 3.5% and focuses on large-cap, profitable businesses, historically beating non-payers and being less volatile.
- For long-term investors seeking consistent returns, the Vanguard S&P 500 ETF (VOO) is a reliable choice, mirroring the S&P 500's performance with a low net expense ratio of 0.03% and a yield of 1.2%.
- Risk-averse investors looking for short-term safety can consider the iShares 0-3 Month Treasury Bond ETF (SGOV), which invests in Treasury bills with maturities of three months or less, providing a higher yield than CDs and savings accounts, monthly distributions, and U.S. government backing.
- In the year 2023, an average individual may not have invested in any of the aforementioned ETFs, missing out on opportunities to diversify their portfolio, minimize risk, and pursue their financial goals.
