Vanguard ETFs recommended to combat stock market volatility
The stock market is currently in a correction phase, with the S&P 500 down 10% and the Nasdaq Composite down over 14% from recent peaks. Many individual stocks have experienced even larger declines. To help manage this volatility, investors may consider dividend stocks, which tend to be less volatile. Vanguard offers three ETFs: the Vanguard High Dividend Yield ETF, Vanguard Utilities ETF, and Vanguard Dividend Appreciation ETF, which have performed better than the broader market during this correction. These ETFs provide higher dividend yields, with the Vanguard High Dividend Yield ETF at 2.5% and the Vanguard Utilities ETF at nearly 2.9%. The Vanguard Dividend Appreciation ETF focuses on companies with a history of increasing dividends, offering potential for stable returns and income.