If a Stock Market Correction Is Coming, History Says This ETF Has Always Protected Long-Term Investors
It might be the right time to buy VPU instead of VOO.
Overview
Vanguard's S&P 500 ETF (NYSEMKT: VOO), which passively tracks the S&P 500 (SNPINDEX: ^GSPC), is considered a reliable long-term investment. However, even though the S&P 500 has generated an average annual total return of about 10% since its inception, the benchmark index also typically suffers steep, double-digit declines during recessions.
Therefore, if you're worried about a stock market correction, it might be smarter to invest in Vanguard's Utilities ETF (NYSEMKT: VPU) instead of the top S&P 500 ETF. Let's see how VPU usually protects long-term investors -- and why it might be worth nibbling on today.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.