It’s essential to ensure your investments are strategically placed, especially now.
A survey conducted by financial association MDRT in 2025 revealed that a significant 80% of Americans are at least somewhat worried about the potential for a recession.
While the future is unpredictable, recessions are simply part of the economic cycle. It’s uncertain when the next downturn will occur, but one is bound to happen eventually. Personally, when that time comes, I’ll focus on two strong Vanguard ETFs.
1. Vanguard Total Stock Market ETF
Having diverse investments is crucial during bear markets and recessions, as many stocks tend to falter in tougher economic climates. By holding a range of stocks across different sectors, you have better protection if some of those investments decline.
The Vanguard Total Stock Market ETF (VTI) aims for broad market coverage and offers exceptional diversification.
This ETF includes about 3,512 stocks from companies of various sizes in a multitude of industries. While it leans heavily towards tech, it also contains many established stocks in sectors that usually weather economic downturns better, which can help mitigate volatility.
Historically, the stock market has always bounced back, even from significant recessions. Since this ETF is designed to reflect the market, it has a good chance of withstanding any future downturns.
Moreover, this ETF has proven to be a robust vehicle for wealth accumulation. Since its inception in 2001, it has achieved nearly a 500% total return, even through substantial recessions like the dot-com bubble and the Great Recession.
Essentially, an investment of $10,000 in 2001 could have almost grown to $60,000 over the past 25 years, assuming no further contributions.
2. Vanguard Information Technology ETF
The Vanguard Information Technology ETF (VGT) consists of 320 stocks solely within the technology sector. It’s interesting—when the market faces challenges, tech stocks often take the deepest hits. Still, buying during these downturns can be a savvy move.
Many tech stocks are currently quite pricey. However, a downturn can present opportunities to purchase these high-value stocks at significantly reduced prices.
Investing in tech ETFs can provide a level of diversification. While some tech companies might not weather a recession, investing in a bundle of over 300 stocks enhances your chances of finding successful ones for long-term growth.
The Vanguard Information Technology ETF has historically been profitable, with a nearly 1,500% increase since its launch in 2004.
That said, past results aren’t a guarantee for the future, and there’s no certainty that the tech industry will maintain its upward trend. However, the rise of artificial intelligence could potentially fuel even more long-term growth.
No one can say for sure what will happen in the stock market in the near future, but making informed investments is crucial for building wealth over the long term.
