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Vanguard ETFs: Where to Invest Amid Market Turbulence

Investors are redirected to Vanguard ETFs with solid fundamentals. Despite AI stocks falling in 2025, sectors like utilities and consumer staples may provide stability and growth in today’s unpredictable market.

Date: 
AI Rating:   7
Market Overview
The recent report highlights the decline of key Vanguard ETFs, particularly those in the technology sector that have underperformed in 2025, potentially affecting investor sentiment.

It discusses three Vanguard ETFs that are posited as better investment choices during market volatility: Vanguard Utilities ETF, Vanguard Consumer Staples ETF, and Vanguard Intermediate-Term Treasury ETF. This reflects a strategic pivot towards sectors considered safer during economic downturns.

Vanguard Utilities ETF
This ETF focuses on utility stocks, renowned for their stability during market fluctuations. The mention of strong growth prospects due to AI demand-driven data centers indicates potential revenue growth for utilities. Furthermore, the 30-day SEC yield of 2.89% portrays a steady income stream which is attractive to income investors, thus positively impacting its stock performance.

Vanguard Consumer Staples ETF
The inclusion of consumer staples suggests a focus on companies that remain resilient even in downturns, with reputable holdings like Costco and Procter & Gamble. An annual return of 9.62% since inception affirms the ETF's positive historical performance. The forward dividend yield of 2.16% further enhances its attractiveness, indicating that it can provide a solid return even in uncertain times.

Vanguard Intermediate-Term Treasury ETF
This ETF emphasizes the safety of treasury bonds in a volatile market environment, providing a much-needed balance between safety and yield, with a yield of 4.09%. While its historical returns are modest, the current interest rate environment could buoy its appeal among risk-averse investors, potentially stabilizing its price.

This transition from growth-oriented technology funds to utility and consumer staples indicates a strategic response to market conditions, which may offer resilience against stock price volatility.