An atrocious October in 2018 has spooked many investors in the stock market. And almost as fast, the stock market has proven yet again that it can bounce back rapidly. Just don’t look away from your money and investments for very long. The financial media keeps reminding the public that the next big sell-off, or even a crash, could be right around the corner if certain risks become reality. Here’s the other reality: You don’t have to lose your assets during a stock market sell-off or even during a crash, and you can even profit from it!
24/7 Wall St. has gathered a list of 10 exchange-traded funds (ETFs) and exchange-traded notes (ETNs) for investors who have to put their money somewhere but are afraid that the stock market could tank at any moment. These cover multiple strategies outside of regular equity index investing, and we have included instances where the ETFs have not performed properly and we have identified some risks and caveats that investors need to consider about each fund.
The next time you see a stock market crash, or just a major market pullback in a short period, be sure to look back at the performance of these specific ETF products. You’ll probably be surprised just much better they do as a whole compared to any index tracking the Dow Jones industrial average, the S&P 500 and the Nasdaq 100. And investors should consider that there are probably a few options from other ETF issuers that compete against these, almost down to the exact same strategy. Leveraged ETFs and ETFs that are too difficult to easily explain have been left out of this review.
Here are 10 ETFs for investors to seek out of they are worried about the next stock market sell-off or crash being right around the corner.