If recent market ups and downs have you worried, you’re not alone. Investor confidence has bounced from 43% optimism in January down to 19% in March, then back up to 38% recently, according to the American Association of Individual Investors.
Recession chances have also shifted. In March, J.P. Morgan analysts saw a 40% chance of a 2025 recession. That rose to 60% in April but dropped below 50% by mid-May.
Much of this volatility ties to changing tariff policies. Instead of trying to time the market perfectly, a safer strategy is to invest steadily and hold long term.
Here are three Vanguard ETFs I’m buying and holding for the long haul, regardless of economic ups and downs.
1. Vanguard S&P 500 ETF (VOO)
This ETF tracks the S&P 500, which includes 500 of the largest U.S. companies. These are industry leaders with long histories of weathering recessions and market downturns. This makes VOO a relatively safe choice during volatile times.
VOO’s expense ratio is just 0.03%, meaning very low fees—only $3 per year for every $10,000 invested. Lower fees help your investment grow more over time.
2. Vanguard Growth ETF (VUG)
VUG focuses on stocks with strong growth potential, mainly in technology. About 57% of its 166 stocks are tech-related, compared to 30% in VOO.
This fund offers diversity across 11 sectors, reducing risk if one area struggles. At the same time, its tech focus offers a chance for higher returns.
Over the past decade, VUG returned nearly 279%, compared to 181% for VOO. A $10,000 investment 10 years ago would now be worth about $38,000 with VUG, versus $28,000 with VOO.
3. Vanguard Information Technology ETF (VGT)
VGT invests exclusively in technology stocks—307 companies in total. This makes it the riskiest of the three but also the one with the highest return potential.
In the last 10 years, VGT’s returns have more than doubled those of the S&P 500 and outperformed VUG. A $10,000 investment a decade ago would now be worth nearly $56,000.
The downside is higher volatility. Tech stocks can fall sharply during downturns, so be ready for ups and downs if you choose VGT.
Conclusion
No one can predict if a recession will hit soon. But by investing in these Vanguard ETFs, you can balance risk and reward while aiming for long-term growth. Holding VOO for stability, VUG for growth, and VGT for tech exposure creates a well-rounded portfolio ready for whatever the market brings.
READ MORE:
