S&P 500 Sell-Off: 3 Vanguard ETFs to Consider Now

Recently, the S&P 500 (^GSPC) has seen a decline, dropping 8.73% since mid-February. With the market experiencing volatility and many investors showing concern about a potential recession, around 60% of U.S. investors expressed a pessimistic outlook on the market's future in a recent survey.

Despite the current uncertainty, this market dip could provide a perfect opportunity for investors to buy stocks at lower prices. Here are three Vanguard exchange-traded funds (ETFs) that you might want to consider adding to your portfolio.

1. Vanguard S&P 500 ETF

If you prefer a more conservative approach, the Vanguard S&P 500 ETF (VOO) is a strong option. This ETF closely tracks the S&P 500 index, meaning it includes the same stocks and aims to replicate the index's long-term performance.

The S&P 500 is composed of 500 of the largest companies in the U.S. economy, many of which are well-established and resilient during economic downturns. Investing in this ETF can be a safer choice, especially when market conditions are volatile.

Historically, the S&P 500 has proven to withstand various economic challenges, including recessions and market crashes, making the Vanguard S&P 500 ETF a reliable option for cautious investors.

2. Vanguard S&P 500 Growth ETF

For those looking for a little more growth potential, the Vanguard S&P 500 Growth ETF (VOOG) may be the right fit. This ETF contains stocks from the S&P 500 that are expected to grow at a faster rate than others.

The Vanguard S&P 500 Growth ETF features 209 stocks known for their potential for higher long-term growth. This provides a balance between a stable investment and the potential for increased returns.

Over the past decade, it has achieved an average annual return of 14.63%, which outperforms the traditional Vanguard S&P 500 ETF's return of 12.93%. Even small differences in returns can accumulate significantly over time.

3. Vanguard Information Technology ETF

The Vanguard Information Technology ETF (VGT) focuses exclusively on the technology sector, holding 314 different tech stocks. While this ETF comes with a higher risk due to less diversification, it has historically delivered impressive returns.

Over the last ten years, VGT has averaged a return of 19.76% annually. If you invested $200 a month, at that rate, you could accumulate around $2.7 million over thirty years.

However, investors should be aware that technology stocks can be significantly affected during economic downturns. The tech-focused Nasdaq Composite (^IXIC) has dropped over 11% since mid-February, indicating potential volatility in the short term. Despite this, the long-term gains have often outweighed short-term challenges.

The current price of the Vanguard Information Technology ETF is around $560, down from about $644 a month ago, presenting a possible buying opportunity for those interested in the tech sector.

Market fluctuations can be intimidating, but they also present unique buying chances. Regardless of which investments you choose, maintaining a long-term perspective and holding your investments through rough patches is wise.

Investing should always be approached with careful consideration, and it's essential to research and evaluate before making decisions.

S&P500, ETFs, Investing