3 Magnificent Vanguard ETFs to Stock Up On Right Now if a Recession Is Coming in 2026
The Motley Fool·2026-01-17 21:45

Core Insights - The article emphasizes the importance of investing in exchange-traded funds (ETFs) to protect portfolios amid market volatility and potential downturns, highlighting that 80% of Americans are concerned about a looming recession [1][2]. Group 1: Market Overview - Stock prices are rising, with the S&P 500 and Dow Jones Industrial Average reaching new all-time highs [1]. - Despite the positive market performance, investor sentiment remains cautious due to recession fears [1]. Group 2: Recommended ETFs - Vanguard S&P 500 ETF (VOO): This ETF tracks the S&P 500, which has a strong historical performance during recessions, with every 10-year period over the last 82 years ending in positive total returns [3][4][5]. - Vanguard Total Stock Market ETF (VTI): This ETF offers broader market exposure with 3,527 stocks across all market segments, providing increased diversification to limit risk [7][8][9]. - Vanguard Dividend Appreciation ETF (VIG): Focuses on companies with a history of increasing dividends, providing a source of passive income and potential for growth through reinvestment [10][11][12][13]. Group 3: Investment Strategy - Continuing to invest consistently, even during market downturns, can capitalize on potential returns and build long-term wealth [2][14].