Safeguard Your Portfolio: 3 Vanguard ETFs to Weather a Market Crash

Rowan Ashford

Published: February 1, 2026 3:17 PM ET

Investors are increasingly concerned about the possibility of a market crash. The S&P 500 has shown impressive growth over the past three years, with significant returns. However, indicators suggest that a downturn may be imminent, prompting the need for protective measures. Strategies include investing in resilient assets. Vanguard offers several Exchange-Traded Funds (ETFs) that can help safeguard portfolios during turbulent times.

Vanguard ETFs to Weather a Market Crash

Here are three Vanguard ETFs that investors can consider to manage risk during potential market downturns:

1. Vanguard Short-Term Treasury ETF

The Vanguard Short-Term Treasury ETF (VGSH) is designed for safety amid volatility. Many investors traditionally viewed long-term U.S. Treasuries as secure options. However, recent analyses indicate that short-term Treasuries may offer better protection now.

Current Price: $58.86
30-Day SEC Yield: Approximately 3.6%
Average Duration: 1.9 years
Expense Ratio: Low at 0.03%

This ETF comprises 92 U.S. Treasury bonds and provides investors a reasonable chance of preserving capital during market downturns.

2. Vanguard Total Bond Market ETF

The Vanguard Total Bond Market ETF (BND) is an extensive bond fund that aims to provide downside protection through investment-grade bonds. With many bonds typically gaining value when stocks decline, this ETF is a viable option for risk-averse investors.

Current Price: $74.27
30-Day SEC Yield: Nearly 4.2%
Average Duration: 5.7 years
Holdings: 11,444 bonds, with 69% in U.S. government bonds

This diversified fund allows investors to pursue income while tempering risks associated with stock ownership.

3. Vanguard U.S. Minimum Volatility ETF

The Vanguard U.S. Minimum Volatility ETF (VFMV) adopts a unique approach by selecting stocks expected to be less volatile. This strategy aims to mitigate losses during market contractions.

Current Price: $134.94
Beta: 0.56, indicating lower volatility compared to the broad market
Top Holdings: Companies like Lam Research, Johnson & Johnson, and Coca-Cola
Expense Ratio: 0.13%

This ETF, while containing stocks, minimizes risk through strategic selection, providing a cushion when markets fluctuate.

Conclusion

Although no investment can fully protect against market crashes, these three Vanguard ETFs offer strategies to help investors weather financial storms. It is essential for investors to assess their risk tolerance and consider incorporating these options to enhance portfolio resilience.