Broadly speaking, Vanguard exchange-traded funds (ETFs) are popular. Really, really popular. Over $4 trillion in U.S. ETF assets under management (AUM), good for the second-highest tally among all issuers, confirms as much. So do year-to-date inflows of $91.4 billion. Under any circumstances, those are impressive data points and even more so when considering that Vanguard sponsors just over 100 ETFs, a lineup that's far smaller than those of some of its nearest competitors. The other side of that coin is t ...

Core Viewpoint - Investors are increasingly concerned about a potential bear market, prompting a shift towards value, dividend, and international stocks, despite the S&P 500 remaining flat in 2026 [2]. Group 1: Market Conditions - After three consecutive years of over 15% gains for the S&P 500, it is wise to consider portfolio protection against a market correction [1][15]. - Current expectations for GDP and earnings growth, along with stable inflation, do not indicate immediate risks for the markets, but preparation is advisable [3]. Group 2: Investment Strategies - The Vanguard Short-Term Treasury ETF (VGSH) offers a low-volatility option by focusing on short-term U.S. Treasury bonds, providing a 3.6% yield and minimizing default risk [5]. - The Vanguard Total Bond Market ETF (BND) invests across the entire U.S. investment-grade bond market, including Treasuries and corporate bonds, with a yield of 4.2% that compensates for added risk [8][9]. - The Vanguard U.S. Minimum Volatility ETF (VFMV) targets stocks with lower volatility, reallocating towards value and defensive equities, which can help mitigate downside risk [11]. Group 3: Sector Allocations - The VFMV ETF's top sector holdings include technology (26%), industrials (12%), consumer discretionary (11%), and financials (11%), with a focus on less volatile tech stocks [12][13]. Group 4: Overall Strategy - While these Vanguard ETFs may not guarantee protection in a bear market, they are designed to cushion against volatility and should be selected based on individual investment goals and risk tolerance [14].

Group 1 - Vanguard U.S. Minimum Volatility ETF (VFMV) was launched on February 13, 2018, with the objective of long-term capital appreciation while maintaining lower volatility compared to the broad U.S. equity market [1] - VFMV has a portfolio consisting of 198 stocks and utilizes a 30-day volatility measure [1] Group 2 - Fred Piard, PhD, is a quantitative analyst with over 30 years of experience in technology and has been investing in data-driven systematic strategies since 2010 [1] - Fred runs the investing group Quantitative Risk & Value, focusing on quality dividend stocks and companies leading in tech innovation [1] - The group also provides market risk indicators, real estate strategies, bond strategies, and income strategies in closed-end funds [1]