Market dips might be uncomfortable, but they’re actually a normal part of long-term investing. Oftentimes, significant declines can hurt weaker companies, whereas stronger assets tend to bounce back and reach new peaks.
For those navigating short-term fluctuations, turbulent market periods can actually boost long-term returns. This is where broad, low-cost exchange-traded funds (ETFs) shine. Instead of trying to guess which individual stocks will perform best, owning a diversified ASX ETF lets investors stay in the game after a sell-off and reap the benefits when the market recovers.
With that in mind, let’s explore three low-cost Vanguard ETFs that might remain resilient even if the market faces challenges in 2026.
Vanguard Australian Stock ETF (ASX:VAS)
The Vanguard Australian Shares ETF provides exposure to around 300 stocks listed on the Australian stock exchange. Its holdings include notable companies like: BHP Group Co., Ltd. (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA), Woolworth Group Limited, Aristocrat Leisure Co., Ltd., and CSL Co., Ltd. These firms are industry leaders, consistently generating strong cash flow.
During downturns, such companies typically perform better than smaller, riskier stocks. Many even continue to pay dividends, offering some income while investors wait for market sentiment to shift. Historically, Australia’s top stocks have shown an ability to drive returns through various economic cycles, making the Vanguard Australian Shares ETF a reliable choice during uncertain times.
Vanguard MSCI Index International Stock ETF (ASX:VGS)
If you’re apprehensive about concentrating investments in one market, the Vanguard MSCI Index International Stock ETF presents an appealing alternative. It provides instant global diversification by allowing investors to own a piece of thousands of stocks from developed markets, including major players like Microsoft Corporation (NASDAQ:MSFT), Nestlé (SWX:NESN), and Johnson & Johnson (NYSE:JNJ).
This broad exposure means that weaknesses in one region can potentially be balanced out by strengths elsewhere. Even during a global downturn, many leading multinational firms continue to see revenue growth and reinvest for the future. Over time, this resilience has helped global stock markets bounce back from wars, recessions, and financial crises, rewarding those who stay patient.
Vanguard US Total Market Share Index ETF (ASX:VTS)
Lastly, the Vanguard US Total Market Share Index ETF offers more than just access to the largest U.S. companies. It encompasses the entire U.S. market, featuring large-cap, mid-cap, and small-cap stocks across all major sectors.
While tech giants like Apple Inc. (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Nvidia (NASDAQ:NVDA), and Alphabet Inc. (NASDAQ:GOOGL) are part of its portfolio, the Vanguard ETF also includes industrials, healthcare companies, and consumer goods that can thrive even if growth slows. This diversification allows investors to tap into innovation and economic expansion without being tied to a single narrative for success.
