Sometimes the only way out of stock market volatility is "through."
Sometimes the only way out of stock market volatility is "through."
There is often no escape from the volatility of a stock market crash. When a bear market hits, it can be hard to find any "safe" stocks or sectors to hide out in for long.
Instead of trying to pick "safe" stocks that might do better during a bear market, the best strategy for many investors is to buy low-cost index funds that track the total stock market. And then hold onto those investments through the short-term declines.
Three of the best low-cost total stock market index funds include the Vanguard S&P 500 ETF (VOO +0.30%), the Vanguard Morningstar Total Stock Market ETF (VTI +0.33%), and the Schwab U.S. Broad Market ETF (SCHB +0.39%). These funds let you own hundreds or thousands of U.S. stocks for one low fee -- each ETF charges an expense ratio of only 0.03%.
Let's look at why these low-cost index funds could be worth including in your portfolio -- before the next bear market, and for many years to come.
VOO, VTI, and SCHB: Ultra-low cost ETFs with strong track records of returns
The stock market tends to be a great way to invest your money if you want long-term growth. But you have to be willing to accept some short-term risks, volatility, and "stormy weather" as part of that journey.
The stock market's average annual return, as represented by the S&P 500 index, is about 10%, going back 98 years to 1928. The Vanguard S&P 500 ETF (VOO) tracks this same level of performance.
VOO is designed to give investors about that same S&P 500 return generated by the 500 largest publicly traded companies in America. VOO has been available since September 2010, and it has delivered average annual returns of about 14.9% in the 16 years since its inception.
VOO Vanguard S&P 500 ETF
Averytin News Financial update.