I saw a meme on the internet this week. It showed four shapes: a pentagon, a hexagon, an octagon, and a steeply declining stock chart with the name “portfoliogone.” That’s gallows humor at its finest.
Many investors might identify with the last “shape” in that meme and want to head to the sidelines. However, I’d argue there’s a Vanguard exchange-traded fund (ETF) suitable to buy in nearly any market environment. And I can’t think of a better Vanguard ETF to buy during the current market sell-off than one in particular.
Behind the market decline
Before I identify this Vanguard ETF, we should understand the reasons behind the market decline. Three factors especially stand out.
First, the bull market has been driven largely by tech stocks focused on artificial intelligence (AI). Several of these stocks have pulled back in recent weeks for various reasons,…
