Stock Market Plunging: 3 Safe ETFs to Buy Now

The stock market is in turmoil, and investors are scrambling to find safe havens. With volatility on the rise, it's crucial to identify exchange-traded funds (ETFs) that can provide stability and growth potential. Here are three exceptionally safe ETFs to consider buying right now.

1. iShares Core S&P 500 ETF (IVV)

The iShares Core S&P 500 ETF (IVV) is a cornerstone for any portfolio seeking stability and long-term growth. This ETF tracks the S&P 500 index, which includes the 500 largest companies in the U.S. With an expense ratio of just 0.03%, IVV offers cost-effective exposure to the largest and most stable companies in the market.

IVV's portfolio features all S&P 500 components, led by trillion-dollar tech stocks such as Apple Inc. (AAPL) and Microsoft Corp. (MSFT). These companies have strong balance sheets and steady cash flows, making them resilient during market volatility. During the market downturn in January 2025, IVV's broad exposure to large-cap stocks helped mitigate some of the losses compared to more volatile sectors.

2. iShares Core S&P Small-Cap ETF (IJR)

For investors looking for growth potential with a bit more risk, the iShares Core S&P Small-Cap ETF (IJR) is an excellent choice. This ETF focuses on the S&P 600 index of small-cap stocks, which are generally more volatile but offer higher growth potential. With an expense ratio of 0.06%, IJR provides diversified exposure to smaller companies that have the potential for significant long-term upside.

Small-cap stocks are more sensitive to economic cycles and market conditions, making IJR more volatile. However, this volatility can also lead to significant gains during bull markets. During the market volatility in January 2025, small-cap stocks were particularly affected by the sell-off in tech stocks following the emergence of Chinese developer DeepSeek, which led to a near 17% plunge in NVIDIA shares that day. Despite this, IJR's focus on up-and-coming growth opportunities makes it a worthwhile addition to any portfolio.

3. Invesco QQQ Trust (QQQ)

The Invesco QQQ Trust (QQQ) is a tech-heavy ETF that tracks the Nasdaq-100 index. With an expense ratio of 0.20%, QQQ provides exposure to the largest and most innovative companies in the technology sector. Top holdings include Apple, Microsoft, Nvidia, and Amazon.com Inc. (AMZN), making QQQ a go-to for investors seeking growth potential in the tech industry.

QQQ's focus on the technology sector makes it highly sensitive to market trends and innovations in tech. While this can lead to significant gains during bull markets, it also exposes the ETF to higher volatility during market downturns. During the market volatility in January 2025, the Nasdaq Composite suffered a sharp decline on Jan. 27, driven by a sell-off in tech stocks following the emergence of Chinese developer DeepSeek, which led to a near 17% plunge in NVIDIA shares that day. The index ended the week with a 1.6% decline. Despite this, QQQ's long-term growth potential makes it a valuable addition to any portfolio.

Conclusion

In times of market volatility, it's essential to have a diversified portfolio that includes safe-haven ETFs. The iShares Core S&P 500 ETF (IVV), iShares Core S&P Small-Cap ETF (IJR), and Invesco QQQ Trust (QQQ) offer stability, growth potential, and exposure to different sectors of the market. By investing in these ETFs, you can navigate the current market turmoil with confidence and position your portfolio for long-term success.