History Says This ETF Could Be the Biggest Winner of the Stock Market Sell-Off
If equity markets tumble, the Vanguard Information Technology ETF should be on investors' shopping lists.
Amid 2026's challenging year for equity investors, broad indexes like the Nasdaq-100 and S&P 500 have still managed to post gains. The allure of bear markets and deep sell-offs remains a part of investing, but savvy investors use these moments as a chance to add to or build positions that may have been unfairly hit. For those eyeing a rebound following a market tumble, the Vanguard Information Technology ETF (VGT) stands out as a potential candidate.
This $149 billion fund, the largest dedicated technology ETF, has shown resilience post-market turbulence, rebounding sharply from dips. With 43.6% of its weight invested in chipmakers and equipment names, the tech sector's heavy influence is clear, yet the fund has still managed a 28% increase this year. While predicting the timing of market corrections isn't straightforward, factors like the Federal Reserve's inflation fight through higher interest rates could set the stage for a market downturn.
Historically, sectors don't rebound from sell-offs uniformly, but the Vanguard ETF's broad exposure to 318 tech stocks eases the burden of market timing. For long-term investors, the fund's low 0.09% expense ratio, or $9 on a $10,000 investment, makes it an appealing choice.
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