Worried About a Recession or Bear Market in 2026? This ETF Is One of the Best You Can Own Right Now.

Core Viewpoint - The article emphasizes the importance of investing in a broad market ETF, specifically the Vanguard Total Stock Market ETF, as a strategy to protect portfolios amid market uncertainty and potential recession concerns [1][2]. Group 1: Market Sentiment - Approximately 80% of U.S. adults express some concern about a recession, while over 44% of investors remain optimistic about the stock market's performance in the next six months [1]. - The Vanguard Total Stock Market ETF is highlighted as a safe investment option during uncertain times [2]. Group 2: Investment Strategy - Investors are encouraged to invest in solid stocks rather than waiting out market volatility, as this can help build wealth [2]. - A broad market ETF like the Vanguard Total Stock Market ETF offers extensive diversification, which can mitigate risk during market downturns [5]. Group 3: ETF Characteristics - The Vanguard Total Stock Market ETF includes 3,531 stocks across various industries, providing a comprehensive representation of the market [4]. - The ETF has a strong historical performance, averaging a return of 9.25% per year since its inception in 2001, with a hypothetical $5,000 investment growing to nearly $30,000 today [7]. Group 4: Advantages and Disadvantages - Advantages of the Vanguard Total Stock Market ETF include ultimate diversification, a flawless track record of recovering from market downturns, and reduced short-term volatility compared to more focused funds [5][6]. - A notable downside is that it may yield lower returns compared to growth-focused ETFs, which could be a trade-off for investors prioritizing safety [8][9]. Group 5: Long-term Considerations - The article suggests that while no investment is guaranteed, broad-market funds like the Vanguard Total Stock Market ETF are likely to rebound after downturns and experience long-term growth [6]. - Investors must weigh their risk tolerance and investment goals when choosing between stability and higher growth potential [12].