In the ever-changing world of investing, market volatility can be as constant as change itself. The swings can unnerve even the most seasoned investors, tempting them to make hasty decisions that may harm their long-term financial goals.
Many may be scared of the ongoing stock market volatility caused by high inflation, a less-dovish Fed, chances of higher-for-longer rates, Trump tariffs, trade tensions and geopolitics, but economic and corporate fundamentals do not seem to be a cause of concern.
An article published on MarketWatch points out that for more than 100 years, stocks have almost doubled every eight years irrespective of geopolitical crisis, bubbles, credit defaults, pandemics, currency devaluations and inflation
If you go by Warren Buffett, “the stock market is a device which transfers money from the impatient to the patient.” Hence, we highlight a few exchange-traded funds (ETFs) that can be invested and held in the current volatile market as these products are ageless and great long-term holdings.
ETFs in Focus
iShares Core S&P 500 ETF ( IVV ) – Zacks Rank #1 (Strong Buy)
The fund IVV tracks the performance of the S&P 500 index, which comprises 500 of the largest publicly traded companies in the United States. It offers exposure to blue-chip stocks across multiple sectors and has historically delivered competitive returns compared to other large-cap benchmarks.
There is no five-year period in history where the S&P failed to give gains, per the MarketWatch article. The index is up 3.2% this year, gained 22% in the past one year and added 78.8% in the last five years.
iShares Core S&P Total U.S. Stock Market ETF ( ITOT ) – Zacks Rank #2 (Buy)
Having an exposure to the overall stock market, irrespective of capitalization and style is an intriguing bet over the long term as it offers true diversification. Diversification is a way to win in an unstable market.
The underlying S&P Total Market Index tracks the broad equity market, including large, mid, small, and micro-cap stocks. ITOT charges 3 bps in fees and yields 1.19% annually. The ETF added 73.9% over the past five-year period (read: A Quick Guide to the 25 Cheapest ETFs).
SPDR Gold Shares ( GLD ) – Zacks Rank #3 (Hold)
Gold has traditionally been seen as a safe haven in times of financial uncertainty. The SPDR Gold Shares ETF offers investors an effective way to incorporate gold into their portfolio without the need to physically own the metal.
GLD tracks the price of gold bullion, providing a hedge against inflation and currency devaluation. For investors looking to diversify their holdings and protect against systemic risks, GLD can be a golden choice. The GLD ETF is hot this year as it is up 9% in 2025. The ETF gained 79.6% over the past five years.
SPDR S&P Dividend ETF ( SDY ) – Zacks Rank #2
Stocks that hike dividends continuously are safe bets. Over the last 90 years, dividends have accounted for more than 40% of the total return of the markets, per a research paper out from Morgan Stanley. From 1991 through 2015, non-dividend paying stocks earned only 4.18% returns per year while dividend-paying stocks significantly outperformed with a 9.7% average annual return, the paper highlighted.
The underlying S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend-yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years. SDY charges 35 bps in fees and yields 2.52% annually. However, the ETF has offered a moderate return of 22.8% over the past five years, indicating a good bet for risk-averse investors.
VanEck Morningstar Wide Moat ETF MOAT – Zacks Rank #3
The term “economic moat” was popularized by legendary investor Warren Buffett who said that he seeks "economic castles protected by unbreachable moats.” In simple words, a moat is a unique competitive advantage that allows a company to outperform others in the same industry over time.
The underlying Morningstar Wide Moat Focus Index of the ETF MOAT tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages. IT charges 47 bps in fees (read: Can Buffett-Style Investing Succeed Today? Stocks & ETFs to Consider).
MOAT shares have gained 62% in the past five years. Since inception in 2012, the ETF advanced 342% in price.
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SPDR Gold Shares (GLD): ETF Research Reports
SPDR S&P Dividend ETF (SDY): ETF Research Reports
VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports
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